The Best Way to Prevent Overstock and Stockouts with Smart Repricing

Managing inventory on Amazon can be tricky. One moment, you have too much stock, and the next, you’re out of stock, missing out on sales. This constant tension between overstocking and stockouts not only affects your sales but also harms your Amazon ranking and customer trust.

So, how can you manage inventory effectively without losing money or customers? The answer lies in smart repricing. By adjusting prices automatically, repricing helps you control your inventory, balance demand, and avoid the pain of overstocking or running out of stock unexpectedly.

In this blog, we’ll help you understand why overstock and stockouts happen, and how they impact your business. Then, our aim is to explain how you can prevent both these issues with smart repricing and the right repricing strategies. You’ll learn how to implement repricing successfully to ensure your inventory stays just right.

Lastly, we’ll discuss what to do if stock outs happen despite your best efforts, and how smart tools can help you stay on track without constant manual monitoring.

Why Overstock and Stockouts Are Silent Business Killers

Overstocking and stockouts are like the silent killers of your Amazon business. You might think they’re small issues, but to learn how to avoid overstocking inventory, it’s important to first understand where these problems can lead. Let’s take a closer look at what each issue can cause:

Overstocking leads to:

• High storage fees: Amazon charges extra fees for products that aren’t moving.
  
• Money tied up in unsold stock: Your capital is stuck in inventory that isn’t selling.
  
• Discounting your way out: To clear excess stock, you might have to drop prices, which cuts into your profits.
• Cash Flow impact: Amazon’s FBA rules show that long-term storage fees can hurt your bottom line. Holding onto excess inventory not only leads to these fees but also ties up your cash flow.

Stockouts lead to:

• Lost Featured Offer spot: If you run out of stock, you lose the chance to grab the Featured Offer.
  
• Lower search rankings: Amazon punishes out-of-stock listings by pushing them down in search results.
  
• Unhappy customers: Missing products means unhappy buyers who might go elsewhere.
  
• Missed sales: Every time you run out, you miss out on potential revenue.
  
• Decreased visibility: when you run out of stock, your listing’s visibility drops, making it harder to attract buyers.

So what’s the solution? A smarter, more efficient system that adjusts prices and manages inventory in real-time. But managing inventory isn’t always as easy as it seems. Let’s dive into why.

Inventory Management Isn’t Just Guessing: But Most Sellers Treat It As if it is

Many Amazon sellers rely on guesswork when managing their inventory. They might look at past trends or go with their gut feeling, hoping it works out. But how to manage inventory effectively is much more than just guessing. It takes a smart approach and the right tools to keep track of your stock.

Here’s why:

Demand changes quickly: 

Just because a product sold well last month doesn’t mean it will continue to sell at the same rate. Take, for example, a product like a Halloween costume. It might sell in large quantities leading up to October, but after Halloween, the demand drops dramatically. If you don’t account for this, you could end up with a pile of unsold costumes, clogging up your inventory.

Seasonal shifts: 

Certain products have peak seasons, and failing to plan around them can hurt your Amazon business. For instance, think of winter coats. They sell well in the colder months, but if you don’t adjust your inventory for the warmer months, you could be left with excess stock that’s hard to move. Similarly, products like Christmas decorations only sell well in the lead-up to the holidays. If you fail to plan your inventory properly, you’ll either miss out on sales or end up stuck with leftover stock after the season ends.

Competitors’ prices keep changing:

Competitors are constantly adjusting their prices, and if you’re not keeping up, you could lose out on sales. For instance, if a competitor selling phone chargers drops their price by 20%, and you don’t adjust yours, you might lose the sale, even if you have the same quality product. Without real-time pricing adjustments, you’ll struggle to stay competitive and avoid stockouts or excess inventory.

Trends can be unpredictable: 

Some products might suddenly become popular due to viral trends. Consider the case of fidget spinners. One year, they were all the rage, and sellers who couldn’t react quickly enough with increased stock or adjusted prices missed out on huge sales. If you’re relying on old data or static inventory management, you’ll miss these golden opportunities.

So, what’s the solution?

While inventory management is crucial, it’s not just about counting products and hoping you ordered enough. The main problem is that most sellers don’t have a system that responds to these changes in real time. Without this, you either end up with too much stock or risk running out.

That’s where smart repricing comes into play. With the right repricing tool, you can adjust prices on Amazon based on how quickly your products are selling. This helps keep stock levels in balance, reducing the risk of overstocking or stockouts and ensuring you’re always in sync with market demand.

Smart Repricing: Your Secret Weapon to Balanced Inventory

Let’s Make It Simple:

Smart repricing automatically adjusts your product prices based on changes in the market, your inventory levels, and your sales performance. It’s not manual; it’s intelligent, and an Amazon repricing tool for inventory management can help streamline this process.

Here’s how it works:

• If a product is moving too slowly, the repricer lowers the price just enough to make it more attractive, helping you clear excess inventory without taking a huge loss.
  
• On the flip side, if a product is flying off the shelves on Amazon, the repricer can increase the price slightly. This slows down the sales just enough to prevent running out of stock too soon.
  

This system ensures your pricing is in sync with real-time demand, helping you avoid both overstock and stockouts without the hassle.

So how exactly does smart repricing help prevent both issues? Let’s explore that next.

How Smart Repricing Keeps You in the Inventory “Sweet Spot”

Let’s break it into two easy parts:

Avoiding Overstock
When you’ve got extra stock sitting around, prices can be lowered a little to help it sell faster. This avoids having to give big discounts or pay high Amazon storage fees. For example, if you’re selling t-shirts and have too many left, lowering the price just a little can help you sell more without losing money.

Avoiding Stock Outs
If a product is selling really fast, the repricer can increase the price a bit. This helps slow things down, so you don’t run out of stock too soon. For example, if you’re selling a phone charger and it’s selling quickly, increasing the price a little can stretch your stock until you can restock. This keeps your product visible and keeps you from losing sales.

The result? Your business stays steady, and you don’t have to worry about running out of stock or overstocking.

In the next section, let’s connect this strategy to a real-world solution sellers are already using: Alpha Repricer.

How Alpha Repricer Supports Smarter Inventory Decisions

Alpha Repricer is the Amazon repricing tool you’ve been looking for! It’s designed to help you manage your inventory and pricing without all the guesswork, and it does exactly what we just talked about; and even more. Here’s why so many sellers trust it:

• Repricing Fast: Get instant responses to market changes, so your prices are always up-to-date.
  
• Stock-based Repricing: Automatically adjust prices based on the quantity you have in stock.
  
• Velocity-based Repricing: Prices change depending on how fast your product is selling.
  
• Bulk Rule Setup: Manage multiple SKUs at once with rules that make sense for your inventory.
  
• Category Filtering: Set unique strategies for seasonal items, clearance products, or high-margin goods.
  
• Dashboard Overview: Keep track of both pricing and stock performance from one place.

But let’s say, despite smart repricing, you still end up running out of stock on Amazon. In that case, what should your Amazon out-of-stock strategy be to handle the situation and stay visible and competitive while you restock? Here are a few tips to help you get out of the tough spot: 

What to Do When You Still Run Out of Stock

Stockouts can hit even the best-prepared sellers. Maybe you had a surprise surge in sales, or a sudden promotion, and now you’re out of stock faster than you expected. But no need to panic. It happens. Here’s what you can do when it does:

appens. Here’s what you can do when it does:

• Pause repricing on out-of-stock items. When you’re out of stock, it doesn’t make sense to keep adjusting prices, as there’s no inventory to sell. Instead, pause repricing for those items or set the price to the maximum allowed to avoid unnecessary adjustments and focus on in-stock products.
• Protect your margins on the last few items left. If you’ve got a little stock left, adjust prices carefully to make sure you protect your profit. You can even increase the price slightly to get a better margin, or set limits to avoid cutting into your profits.
  
• Set up low-stock alerts. Get notified when your stock’s running low on Amazon, so you have time to reorder before you run out.
  
• Hold your position in listings. If you run out of stock, Alpha Repricer helps you keep your prices in check until your inventory is back. This way, your listing stays visible and you’re ready to jump back in when your stock is replenished.

Example 1: You’re selling a popular kitchen gadget. It flies off the shelves during a big sale, and you’re out of stock in a couple of days. But because you paused repricing, your prices stay steady, and when new stock comes in, your pricing picks back up, keeping your spot in the Featured Offer.

Example 2: You have a few seasonal decorations left. They sell quickly, but you set up low-stock alerts and raise the prices slightly, making sure your inventory lasts longer. Even with fewer items, your listing stays ranked, and you don’t miss out on any extra profit.

If you want to make sure you’re always on top of things and avoid inventory surprises while selling on Amazon, keep reading for some key takeaways.

Final Takeaways: How to Avoid Overstocking Inventory and Stockouts Forever

Let’s wrap this up with some key points:

• Don’t guess your inventory: Use data and insights to make smarter decisions about what you stock. Stop relying on guesswork and start using what the market is telling you, especially when it comes to Amazon.
  
• Smart repricing is like a personal assistant: It adjusts prices for you automatically based on changes in demand and stock levels, so you don’t have to micromanage everything. It helps you avoid both overstocking and running out of products.
  
• Tools like Alpha Repricer take the stress away: With Alpha Repricer, you don’t have to worry about constantly checking prices. It helps you keep things running smoothly while you focus on growing your business.
  
• Don’t just track sales, follow trends: Look at patterns and market trends on Amazon. What worked yesterday might not work tomorrow, so staying ahead of trends is key to maintaining balance between supply and demand.
  
• Automation doesn’t mean losing control: In fact, it gives you more control. You can adjust settings to match your goals, and the system does the hard work for you, saving you time and energy.

In Conclusion, 

In short, inventory issues don’t have to be your problem. With the right approach and the right tools, like Alpha Repricer, you can keep your inventory predictable, your sales steady, and your Amazon customers happy. You’ll be able to avoid overstock and stockouts, making your business more efficient and profitable in the long run.