Clear definitions of inventory management and Amazon FBA terms, formulas, and concepts every seller should understand.
TL;DR Economic order quantity (EOQ) is the order size that minimizes the total cost of ordering and holding inventory. For Amazon FBA sellers, a standard EOQ calculation needs adjustment for FBA storage fees, aged inventory surcharges, and inbound placement costs. Getting this right means fewer wasted dollars sitting on warehouse shelves and fewer emergency reorders […]
TL;DR The reorder point formula tells you exactly when to place your next purchase order so inventory arrives before you stock out. The formula: (Average Daily Sales × Lead Time in Days) + Safety Stock. For most Amazon FBA sellers, the tricky part is getting accurate inputs, especially lead time, which needs to include FBA […]
You’ve done everything right. Your supplier shipped on time, your freight forwarder hit the delivery window, and Amazon checked in your inventory without delays. Then out of nowhere, demand on your best-selling ASIN doubles for two weeks. Maybe a competitor went out of stock. Maybe an influencer mentioned your product. Doesn’t matter. You’re out of […]
TL;DR Amazon lead time is the total days from placing a supplier order to units going live on Amazon. Shorter, predictable lead times protect your ranking, free up cash, and keep you in stock when competitors run dry. Your Amazon lead time quietly decides how much you sell and how much cash you tie up […]