Here are some suggested actions you can take on the inventory table to identify areas of your business that may need improvement.

Discover products that are hurting your profitability:

Add a filter using the metric 'Est Profit Margin' is less than 20% to identify products with low or negative margins. Add an additional filter of 'Inventory Status' as 'excess', now you have a list of SKUs that are in need of attention.

Look at your advertising strategy, does your listing need improvements or do you need to be more competitive with the price? If performance has been in a steady decline it may be time to liquidate the item.

Discover products at risk of stocking out:

FIlter 'inventory status' to identity all SKUs that are in low stock and healthy stock, compare the projected weeks of supply to the lead replenishment time for each product so you can create your replenishment plan. For example, if your average lead time is 2 weeks, it is time to reorder SKUs that have 3 weeks of supply remaining.

Tip: Consider the sell-through rate for these products, if high sales volume products are running consistently selling at a high rate you may be understocking inventory based on demand.

Prioritize out of stock SKUs based on demand:

If you're out of stock or close to running out, you may want to prioritize the products for reorder to avoid tying up too much capital. Filter inventory status by out of stock and low stock, then sort by 3-month forecast to see which products are projected to get lots of sales.


Discover even more insights using the Inventory Health Dashboard and Trends page.

Next: The Inventory Health Dashboard

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