How efficient is your supply chain? As an Amazon seller, you should be asking yourself this question often. After all, the more efficient it is, the more quickly you can turn inventory and grow.
To make sure your supply chain is well managed and moving at an optimal pace, you should assess your supplier relationships, warehousing and fulfillment processes, sales channels, marketing efforts and cash flow. Here, we break down each of these components to show you how to speed up your supply chain and achieve record business growth.
1. Supplier Relationships
Building supplier relationships is key when it comes to maximizing inventory management and increasing efficiency. So make sure you are regularly communicating with your suppliers so they have an understanding of your sales cycles and sales velocity. That way, they’ll have a better idea up front of how much inventory, at a minimum, you are likely to order at a given time plus when and how much your resupply orders will be.
At the same time, you want to understand their lead times and cycles. From there, you can figure out a production plan with them to avoid surprises or delays.
2. Warehousing and Fulfillment Processes
Where do you store your inventory and who is fulfilling your orders? If you’re handling this yourself, it might be time to consider Amazon’s FBA program. After all, they’ve mastered the supply chain game and have a host of efficiencies you can benefit from, like free Prime two-day shipping. At the end of the day, you want to offer your customers the best possible shopping experience and outsourcing your warehousing and fulfillment can help you do that.
3. Sales Channels
Don’t put all your inventory in the Amazon basket. Sure, Amazon is the largest e-retailer, but it’s also highly competitive to sell on. Selling across multiple marketplaces increases your chances of selling more product more quickly — and it’s not going to feel like you’re running multiple businesses. With the help of a platform like ChannelAdvisor, Ecomdash or Skubana, you can manage your cross-channel business activity with ease.
4. Marketing Efforts
It goes without saying that you’re not going to turn inventory that quickly if you don’t have a marketing strategy to drive customers to your listings. At the very least, you should be maximizing your Amazon SEO ranking and doing everything in your power to win the Buy Box. Additionally, you should consider investing in Sponsored Products campaigns and leveraging social media to spread the word about your storefront.
5. Cash Flow
You can’t turn inventory quickly or increase other efficiencies if you don’t have cash. At the same time, you can’t rely on Amazon’s payment schedule to get the daily cash access you need to buy more inventory, invest in big opportunities or cover unexpected expenses. That’s why solutions like Payability exist.
Payability is a financing company for ecommerce sellers that gives you daily access to your income and capital advances. Here are their three cash flow solutions:
Instant Advance: Payability buys a up to a month’s worth of your future receivables at a discount, giving you a large lump sum of cash so you can buy inventory in bulk and take advantage of big opportunities.
Instant Access: Payability pays you your Amazon income one business day after making a sale, giving you daily infusions of cash.
Seller Card: Available for Instant Access customers, the Seller Card gives you even faster access to your income and can be used anywhere Visa is accepted. Plus, you’ll earn up to 2% cash back on all purchases.
To learn more about Payability and the 2,500+ marketplace sellers that have used Instant Advance and Instance Access to speed up their supply chains and grow their businesses, visit https://go.payability.com/prosper to claim your $250 sign on bonus and get 50% off their Instant Access fee.