Amazon Inventory Management: A Practical Guide for Sellers

Selling on Amazon is different from selling in your own online store. You don’t control the final customer experience. But you are still responsible for the accuracy of your product listings, delivery times, and stock availability.

Inventory errors lead to real losses. If your stock level is wrong, Amazon might remove your listing. If you send too much stock to Amazon’s warehouse, you may pay high storage fees. If you send too little, your product disappears during a sale.

Many sellers use both FBA and FBM models. That means they manage Amazon inventory across different systems. Some use spreadsheets. Some depend on Amazon’s internal tools. Some look for software to help. The right choice depends on your business model and how much time your team can spend on manual updates.

Amazon Fulfillment Models and Their Impact on Inventory

Each fulfillment model on Amazon changes how sellers store, track, and move their stock. The model you choose affects not only how you ship orders but also how you use tools for Amazon inventory management. Knowing the key differences helps sellers avoid delays, fees, and lost sales.

FBA — Fulfilled by Amazon

With FBA, Amazon takes care of storage, packing, and delivery. You send products to Amazon’s warehouse. Once they arrive, Amazon handles the rest.

This model is simple in theory. But it comes with strict rules. You must label products correctly. You must follow packaging standards. Failing to meet them leads to delays or rejection.

FBA also adds storage limits. If you send too much inventory and it doesn’t sell, you pay monthly storage fees. If stock sits too long, you face aging fees. That’s why many sellers use Amazon inventory control tools to track how much to send and when.

FBM — Fulfilled by Merchant

FBM means you store and ship items yourself. You’re responsible for order accuracy, packaging, and delivery speed.

This model gives you more control. But it also increases the risk of errors. If your stock numbers are off, you may oversell. If you don’t ship quickly, customers complain.

Manual tracking often fails at scale. Sellers use Amazon inventory management software or spreadsheets to avoid shipping the wrong items or running out of stock.

SFP — Seller Fulfilled Prime

SFP is a special case. You ship the order, but it still qualifies for Prime delivery. That means you must meet Amazon’s delivery promises.

Only experienced sellers that meet performance requirements are accepted. Amazon expects perfect stock accuracy and fast shipping every time. Even one mistake can cost you the Prime badge.

Amazon Fulfillment Models at a Glance

What Inventory Management Means on Amazon

Managing inventory on Amazon requires more precision and faster response times than many sellers expect. Even small stock errors can affect listing health, fees, and customer trust. Here’s what makes inventory management in Amazon different from other platforms.

Amazon’s Standards for Inventory Accuracy and Updates

Amazon ranks product listings not only by sales but also by how reliable sellers are. That includes how well they manage stock. If your item shows as available but isn’t, Amazon may push your listing down or remove it. If your stock is correct, you stay visible.

Timely updates are part of this. Delays between sales and inventory syncs often lead to canceled orders or backorders. That can lower your account health score. Sellers need to keep their Amazon inventory tracking up to date — especially if they manage more than one channel.

Risks and Penalties for Inventory Mismanagement

Amazon penalizes sellers who make repeated stock errors. If you send too much inventory to Amazon’s warehouse, you may be charged storage overage fees.

If you keep items there for too long without sales, you may pay aging stock fees. These can be high, especially for bulky or seasonal items.

Inaccurate stock may also lead to deactivated listings. If you cancel too many orders due to stockouts, Amazon may suspend your seller account. A smart Amazon inventory control setup helps avoid these risks.

Why Amazon Inventory Control Is More Demanding Than Your Own Store

Your own online store usually lets you set the rules. With Amazon, you follow theirs. You don’t decide the delivery deadlines. You can’t change how customer returns work. You must use their system for every fulfillment promise you make.

That means sellers need a tighter inventory management system here. If you sell on multiple platforms, the risk grows. Manual updates can fail. That’s why many sellers look for Amazon inventory management software to track stock levels across all locations — Amazon FBA, their own warehouse, and retail stores.

Inventory Management Tips for Different Seller Scenarios

No single approach works for all Amazon sellers. Inventory needs change depending on catalog size, location, and sales calendar. Adjusting your stock plan to your situation helps reduce waste, missed orders, and manual errors.

Managing a Small vs. Large Catalog

✅ A small catalog is easier to track manually. You can use spreadsheets or Amazon’s built-in tools to manage stock. Just keep an eye on quantity and sales speed.

✅ A large catalog needs more control. Variants, bundles, and seasonal items make it harder to track everything by hand. This is where amazon inventory management software becomes useful. It helps group SKUs, set stock rules, and track reorder levels faster.

Planning Around Sales Events and Holidays

Unfortunately many sellers forget that FBA takes time to receive stock. If you ship too late, your inventory won’t go live on time.

✅ Use past order data to plan restocks. Keep safety stock ready for quick fulfillment.

Monitor shipment statuses through Amazon’s Seller Central, which provides estimated arrival dates and updates when Amazon receives and processes your inventory.

To track precisely how long it takes your shipments to move:

• Use shipping carrier tracking (UPS, FedEx, DHL) to monitor shipment transit times.
• Check the status regularly in Seller Central → Inventory → FBA Inbound Shipments → Manage FBA Shipments to see when Amazon receives and processes your inventory.

Handling Dead Stock and Slow Sellers

Some products don’t sell as fast as expected. They take up space and increase costs. Avoid sending too many of these items to FBA.

✅ To identify slow-moving products early, use these Amazon tools and reports:

• Inventory Performance Dashboard. It gives insights into inventory health and identifies excess or slow-moving inventory.

  Access: Seller Central → Inventory → Inventory Planning

• Manage Excess Inventory Tool that highlights products with excess stock and low sales velocity, helping you decide whether to discount or remove them.

  Access: Seller Central → Inventory → Inventory Planning → Manage Excess Inventory

• Inventory Age Report. It shows how long your inventory has been sitting in FBA warehouses, helping identify items that aren’t selling.

  Access: Seller Central → FBA Sellers Analytics → Inventory Age Excess

❗ Regularly monitor prices using specialized software and base decisions about discounts or product withdrawal on thorough analysis. Avoid making such decisions randomly or without prior evaluation.

Syncing Inventory Across Countries

Sellers active on Amazon India, UAE, or Europe face another challenge. Each marketplace has its own rules. Stock levels don’t sync by default.

✅ To manage Amazon inventory across countries, many sellers use tools that allow manual uploads or regional dashboards. This lowers the risk of overselling or stockouts during peak days.

Software and Tools That Can Help

Sellers manage stock in different ways, depending on their team size and sales volume. Some rely on manual updates. Others invest in full automation. Many use a mix of both.

Manual Tracking Options

Manual methods work well for small catalogs. Amazon offers a basic dashboard where sellers can check stock, update listings, and download reports. Some sellers use CSV uploads to adjust quantities. Spreadsheets are also common.

But manual work takes time. And it increases the chance of error — especially with multiple SKUs or marketplaces. That’s why some sellers move to Amazon inventory management software as their sales grow.

Integrated Inventory Tools

Third-party tools help sellers forecast demand, plan reorders, sync stock, and track sales performance. These tools connect to Amazon and update listings in real time.

Some offer built-in reorder alerts or tracking by SKU. These features make Amazon inventory control easier for teams that sell across many channels.

Here’s the list of the several most popular solutions that have direct inventory management integrations with Amazon:

🔄 Zoho Inventory: Syncs products, sales, and stock levels with Amazon.

🔄 SellerCloud: Manages inventory and orders in multiple domestic and international Amazon accounts.

🔄 SoStocked: Specialized Amazon-focused inventory planning and restock forecasting.

🔄 Veeqo (by Amazon): Free multichannel inventory and shipping software from Amazon.

🔄 Cin7: Synchronizes inventory, tracks sales, and automates orders across multiple channels including Amazon.

ERP and Order Management Systems

For growing businesses, an ERP or OMS can replace manual tasks and scattered spreadsheets. These systems are especially useful for sellers who work across Amazon, their own website, and other platforms.

Final Thoughts: Choose the Right System Based on Your Model

No tool fits every seller. The best approach depends on how you fulfill orders, how fast your business grows, and how much time your team can spend on updates. Some sellers do fine with spreadsheets. Others need software from the start.

Step 1. Begin with Control Before Automation

Start by building clear routines. Know how much stock you hold. Know where it’s stored. Know what sells fast and what doesn’t.

You don’t have to use integrations or software on day one. What matters more is accuracy. If you track stock right, you’ll avoid overselling and losing orders. Even manual amazon inventory management can work — if done with care.

Step 2. Add Software When Manual Tracking Slows You Down

Manual work has limits. If your team spends too much time updating sheets, errors will happen. That’s a sign to switch.

Many sellers move to amazon inventory management software when they start using both FBA and FBM. Or when they expand to more countries. Or when sales increase during campaigns.

Look for tools that make daily work easier, not more complex. Choose features that match how you already work.

Step 3. Focus on SKUs and Batches Before Adding Connectors

Before connecting your Amazon account to any tool, make sure your stock records are clean. That means clear SKUs. That means knowing what batch went where. That means every team member works with the same data.

Only then will a connector add value. Otherwise, it just moves errors faster.

The right inventory management system Amazon sellers choose is one that grows with them — not one that adds pressure before they’re ready.

When the number of items in our product range exceeded 30, keeping track of inventory became challenging. Conducting a full inventory check quickly was even more difficult, and without it, sales would halt. Now, it’s much easier to work.

In Kladana, we manage 1,000 products: we control raw materials stocks and monitor their usage. If something runs out, the system notifies us.

We sell products through phyto-pharmacies and marketplaces using the FBA model. Kladana makes it convenient to control stock and profits, taking marketplace commissions into account.

Frequently Asked Questions on Amazon Inventory Management

How do I track inventory across FBA and FBM?

Use separate listings or tools that allow channel-specific tracking. Keep FBA and FBM stock counts independent. Sync totals manually or with software that supports both models.

What happens if I run out of stock on Amazon?

Your listing may be removed from search results. Once restocked, it won’t always return to its old rank. This affects visibility and sales.

Can I use spreadsheets to manage Amazon inventory?

Yes. Spreadsheets work for small catalogs. But you need to update them often. If you’re late, errors happen. Many sellers move to amazon inventory management software as orders grow.

What’s the best inventory software for Amazon sellers?

There is no single answer. If you’re just starting, free tools or spreadsheets might be enough. For more features, tools like Zoho Inventory, SellerCloud, SoStocked, Veeqo or Cin7 are good options. They help track SKUs, batches, and warehouse processes.

ERPs and Order Management Systems can be helpful here too.

How do I prevent overstocking and FBA storage fees?

Check how fast each product sells. Use Amazon’s restock alerts. Don’t send bulk stock if there’s no plan to sell it soon. Use amazon inventory control tools to see what’s aging.

What’s the difference between Seller Central and third-party tools?

Seller Central offers basic features. You can check inventory and update listings. Third-party tools offer more — automation, batch control, and forecasting.

How often should I update stock levels?

Every day if you can. This is important for FBM. If your data is old, you risk overselling or order cancellations.

Do I need software if I only use FBA?

Maybe not at first. But as you scale, you’ll need tools to track aged stock, returns, and long-term product trends.

Can I use an ERP without Amazon API integration?

Yes. Some tools, including Kladana, let you manage inventory with file uploads. This is useful for sellers who want to keep control without full automation.

List of Resources

1. Amazon Seller Central — Aged inventory surcharge
2. Amazon Seller Central — FBA inventory storage overage fees
3. Amazon Seller Central — Revenue Calculator
4. Amazon Seller Central — Seller Fulfilled Prime trial and program enrollment
5. Amazon Buy with Prime — Catalog CSV import and export
6. Sell with Amazon — Amazon FBA: Fulfillment services for your ecommerce business
7. Sell with Amazon — Display the Prime badge for products you fulfill without Amazon
8. Sell with Amazon — Fulfill orders from your warehouse with faster, cheaper, and more accurate deliveries