Managing inventory efficiently is one of the most critical aspects of running a successful Amazon FBA business. Yet, even experienced sellers often stumble in this area, leading to stockouts, overstock fees, lost sales, and damaged account health.
In this post, we’ll break down the top 5 inventory management mistakes Amazon sellers make—and provide clear strategies to avoid them.
1. Running Out of Stock
Mistake: Many sellers fail to reorder inventory on time, resulting in products going out of stock. This not only leads to missed sales but can also damage your Best Seller Rank (BSR) and listing visibility.
Why It Happens:
- Inaccurate sales forecasting
- Poor communication with suppliers
- Lack of automation or alerts
How to Avoid It:
- Use forecasting tools (like SoStocked or Forecastly)
- Monitor lead times and set reorder reminders
- Consider buffer inventory (safety stock) to handle demand spikes or shipping delays
- Analyze past sales trends and seasonality
Pro Tip: Set reorder triggers based on both time (e.g. every 2 weeks) and stock levels (e.g. when 25% of stock remains).
2. Overstocking and Paying Excess FBA Storage Fees
Mistake: Some sellers over-order to “play it safe,” only to face high storage costs and aged inventory fees.
Why It Happens:
- Overestimating demand
- Panic buying during peak seasons
- Lack of sales velocity tracking
How to Avoid It:
- Use Amazon’s FBA Inventory Age Report to identify slow movers
- Send smaller, more frequent shipments instead of large batches
- Take advantage of Amazon’s Inventory Performance Index (IPI) dashboard to track metrics
- Consider using a third-party warehouse or prep center for off-Amazon storage
3. Ignoring Seasonality and Sales Trends
Mistake: Treating all months the same, ignoring seasonal surges or slumps, often results in understocking during peak months or overstocking during slow ones.
Why It Happens:
- Lack of data analysis
- Failure to plan ahead for Q4, Prime Day, or holidays
- Relying on guesswork instead of trends
How to Avoid It:
- Analyze 12-month sales history for each SKU
- Use tools like Jungle Scout, Helium 10, or Keepa to understand seasonal trends
- Prepare Q4 inventory plans by late Q2 or early Q3
- Set up marketing campaigns to match seasonal demand
4. Not Using Inventory Management Software
Mistake: Relying solely on spreadsheets or manual tracking increases the risk of errors, especially as your catalog or sales volume grows.
Why It Happens:
- Cost concerns
- Belief that spreadsheets are “good enough”
- Not knowing what tools are available
How to Avoid It:
Invest in inventory management software designed for Amazon sellers. Top options include:
- SoStocked – Forecasting + inventory tracking
- InventoryLab – Combines inventory, accounting, and scouting
- Sellerboard – Inventory + profit analytics
- RestockPro – Reorder suggestions based on real-time sales data
These tools help you automate purchase orders, set alerts, track profitability, and make smarter restocking decisions.
5. Not Monitoring Stranded or Suppressed Inventory
Mistake: Sellers often forget to check stranded inventory—products that are in the warehouse but not available for sale due to listing issues or missing info.
Why It Happens:
- Lack of regular Seller Central audits
- Poor listing optimization
- Inaccurate SKU/FNSKU labeling
How to Avoid It:
- Regularly review the Inventory > Manage Inventory > Stranded Inventory tab in Seller Central
- Use the Fix Listing tool to resolve any suppressed ASINs
- Ensure you’re labeling and bundling correctly before shipping to FBA
- Audit your catalog weekly
Quick Tip: Set up alerts in Seller Central so you’re notified immediately if inventory becomes stranded or inactive.
Final Thoughts
Amazon inventory management is not just about keeping products in stock—it’s about striking the right balance between supply and demand while minimizing costs and maximizing sales. By avoiding these five common mistakes, you’ll improve your profit margins, maintain healthy seller metrics, and reduce logistical headaches.
