AMZ Insider Info 3/5/20 with CJ Rosenbaum: Tips on How to Avoid Running Out of Inventory During the CORONAVIRUS on Amazon
If you are a private label branded seller, if you own your own brand, you need to take control of your inventory right now.
Okay? Right now. Don’t wait until tomorrow. Consider raising your prices so your inventory lasts longer. You increase your ROI and also, you avoid running out of inventory a bit longer. Thank you for joining me again for Amazon Sellers Lawyer Insider Information. I’m shooting this as a selfie on my cell phone at the Travel Goods Show in New Orleans. There are tremendous vendors here.
What I want to talk to you about today is inventory management in light of the coronavirus. If you run out of stock, if you run out of inventory, that negatively affects your rankings, it definitely takes away your opportunity to get the buy box, so you don’t want to run out of inventory. Also, there are going to be tremendous amounts of inventory shortages. The longer the coronavirus goes on, the more extreme it’s going to be.
We have four full-time people in China and here’s where the problem lies.. Factories lose a lot of staff when the Lunar New Year hits. People take their bonuses and they quit. When they come back in February, factories re-hire. That didn’t happen this year. So the factories are terribly shorthanded. In addition to that, the goods that are being produced, there are no drivers to get them to the ships, no dock workers to get them on the ships, and it’s really, really difficult to then get the ships overseas into the United States, into your FBA warehouses.
So what I’m suggesting you do is raise prices.
Use this as an opportunity to make more money and also lower the number of sales. Raise your profitability and slow down when you’re going to run out of inventory. Make more money, sell fewer goods, and make your inventory last longer.