FBA Stockouts and Inventory Management

The Effect of Stockouts on FBA Inventory Forecasting

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The effect of an FBA stockout on an Amazon business is often underestimated by sellers. Obviously, you’ll miss out on product sales if you don’t have inventory in stock. That’s the most evident problem, but you need to consider the effect that out-of-stock event will have on your inventory forecast moving forward. Sellers will often underestimate their forecast if they have had a recent out-of-stock event on an item. This is problem intensifies when the stockout event has happened for an extended period of time. Let’s look at a very basic example. Historical Lookback Period: 30 Days Units Sold: 30 If…

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