A regular Amazon FBA audit will also let you optimize costs, improve performance and make the most of profitability. When you conduct an audit, data will be found regarding any inventory management, fees, or account health problems that can be addressed by sellers to correct, based on data. here is the all information about how to conduct an effective Amazon FBA Audit.
Inventory Levels and Turnover Rate Evaluation
For an Amazon FBA audit, inventory management is at the core. The first step is to assess your stock levels and look for slow movers, overstock, and possible out of stocks. A cross increase of items in stock signifies that customers are purchasing products quicker; therefore, you should calculate your inventory turnover rate. Your aim is to maintain a balanced inventory so you don’t have to pay long term storage fees and won’t be out of stock causing down sales and rank. Get an overview of your stock status and optimize storage with Amazon’s Inventory Health Report.
FBA fees and Storage costs review
Fees for FBA can really influence profitability. During your audit, watch your monthly FBA storage fees and fulfillment charges very closely to see if you can knock off any of the fees. But oversized items attract higher fees, so be sure to pay special attention to them. After these fees are deducted, assess your profit margins with an Amazon FBA calculator and use that to adjust your pricing strategy or consider changing over these products to Fulfilment by Merchant (FBM) if storage costs are high. Either remove or liquidate something they’re not selling so as not to incur long term storage fees.
Analyze Returns and Refunds
Returns and refunds have an impact on your health and bottom line. See what your return rate is and look for trends with customers complaining or returning. Do certain products attract more returns than others? Find out if there is a product quality issue, description problem or faulty packaging. Addressing these problems will not only lower your return rates, but also raise customer satisfaction. Your Account Health Dashboard will alert you to the effects of returns on the overall health of your account.
Review Customer Feedbacks and Customer Ratings
And after all, Feedback from customers who are happy is very important for maintaining a good seller rating and winning Buy Box. In the audit, review product ratings, feedback, and reviews to discover where product needs to be improved. Quality issues or bad customer service can almost always be related to some negative reviews. Any critical feedback must be addressed quickly, and if you can, address unhappy customers’ issues. An approach can be taken proactively that can result in better ratings and higher sales.
View Check Account Health and Performance Metrics.
The Account Health Dashboard from Amazon gives a view to some of the key performance indicators (KPIs): order defect rate, late shipment rate, and customer service performance. The cheapest option would be to review these metrics regularly to make sure you are in compliance with Amazon’s standards. For failing to meet Amazon’s performance criteria, penalties and account suspension can be incurred, it is therefore important to address any issues flagged in your account health metrics during the audit.
Monitor Profitability with an FBA Profit Calculator
You won’t use an FBA profit calculator to try and reduce profit margin, but to know how each product can contribute to ensuring your business becomes profitable. Product costs, FBA fees, advertising expenses are taken into account by this tool. Knowing actual profit allows us to price products, manage fees and carry the right inventory.
Conclusion
A thorough Amazon FBA audit allows you to keep an eye on your inventory, fees and performance metrics and all helps in increasing your profitability and customer satisfaction. It allows regular auditing which enables you to make data driven changes to your operations, keeping your FBA in check and profitable. Contact Prep Services FBA Today for better suggestion.
