The main problem that e-commerce sellers encounter is not knowing when and how many items to restock. In a nutshell, e-commerce companies need to know the optimal volume to restock otherwise it puts them at jeopardy of overstocking and understocking.

We want to dodge these three scenarios because overstocking means holding excess inventory sitting on warehouse racks where the long-term storage fees will start racking up (especially in Amazon warehouses) to a substantial number.

The long-term warehouse fees can be around 20-30% of your inventory cost, another reason to avoid overstocking. Understocking should also be avoided because you will miss opportunity cost for not being able to sell if the item had otherwise been restocked to the optimal amount.

The table here shows the inventory status of these 5 items. The items are classified by their restock status with the items that need critical restocks showing up first and the least urgency on the bottom of the list. Items that are out of stock will be on the top of the list and will show a suggested restock date.

If the item is not out of stock but will go out of stock soon, AiHello will give you a suggested restock date so you don’t go out of stock. If you click on the “more” button, it will bring you to the full list of your items where you can see the inventory status of all your items and the recommended dates for each item. You can also set the filter you do or do not want.

For example, if we go to sales velocity and put in 0, the list will give you all the products that have sold in the last 30 days. If we sort the list by reordering date, we can see that the product is improving in sales and the date which AiHello recommends to reorder. If you want to get different recommended restock dates, you can configure each SKU by clicking the eye icon where you can insert your own preferences for fields such as lead time, cycle time and sales velocity.

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