What To Do When You’re Running Out of Stock on Amazon?

[guest post from Victoria Sullivan]

No sales. Lost Buy Box. Low SEO rank. Account suspension. All this — and more — is what you could experience if you run out of stock.

Stocking out is no joke, and Amazon shows no mercy for sellers who can’t fulfill their customers’ orders. That’s why you need to be prepared for a stockout — even if you manage your inventory well. After all, you could experience a sudden increase in sales and start burning through stock faster than you normally replenish it.

Regardless of how you end up with an impending stockout, you want to make sure that your inventory levels never actually hit zero. Here’s what you should do to when you’re running out of stock on Amazon:

1) Order More Inventory

If you’re approaching a stockout, the obvious first step is to order more inventory. How much to order depends on a couple of factors: how many units you have left, how quickly you’ve been selling, and whether or not you already have an order in the works. For example, if you have a recurring reorder that’s already in progress, you may just need to put a rush on it to avoid stocking out.

2) Slow Your Own Sales

You may want to consider slowing your own sales to prevent a stockout. Even though you’d be temporarily limiting revenue and overall business growth, you won’t have to deal with the consequences of a stockout. To slow your sales, pause any promotions or advertising campaigns that are driving buyers to your listing and/or increase the listing price.

3) Re-evaluate Your Inventory Management Strategy

If your impending stockout has come out of left field, you may need to rethink your inventory management strategy. After all, a sudden increase in sales means you are growing, so your minimum viable stock levels and reorder points need to change.

Whether you’re using third-party inventory management software or have been relying on Amazon’s inventory reports, take a look at your numbers to see what needs to change. Then alert your suppliers so they know what they need to update on their end.

4) Invest in Buffer Stock

Another way to prevent a stockout is to invest in buffer stock, also known as an extra stash of inventory. The buffer stock is just that — a buffer — so when you’re nearing a stockout, you still have product to fall back on while you make and wait for a resupply order.

Depending on your sales volume and budget, your buffer supply could match your minimum viable stock level, be 10% the size of a typical order, or be enough to cover the number of sales you typically make in the time it takes your supplier to fulfill an inventory order.

5) Increase Cash Flow

If you’re about to stock out, you need inventory stat, which likely means paying a rush fee. Yet, because of Amazon’s payment delay, you may not have the cash to cover the purchase or fees. Unless, of course, you use Payability.

Payability is a financing company for marketplace sellers that offers a variety of cash flow solutions. For example, if you need a large lump sum of cash, their Instant Advance option might be a smart choice for your business — with it, Payability would buy a certain amount of your future receivables at a discount. Or, if you’re looking for daily payments, opt for Instant Access, whereby Payability pays you your Amazon income one business day after making a sale. For even sooner access to your daily sales, they also offer a Seller Card that comes with cash back benefits and can be used wherever Visa is accepted.

Since 2016, Payability has helped more than 2,500 marketplace sellers maximize cash flow, stay in stock, and take their businesses to the next level. In fact, this Amazon seller uses Payability to turn inventory more quickly, resulting in rapid growth.

For similar success — and to never experience a stockout — visit http://go.payability.com/LandingCube and get a $200 sign on bonus and a 1.5% Instant Access fee (normally 2% of gross sales).

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