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Fee-free 3PL storage for new customers, now through March 31st!

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A guide to Auditing for Amazon FBA

Automated Auditing for Amazon FBA

For Amazon FBA sellers, staying on top of your inventory is critical to maximizing profits and avoiding costly errors. However, manual auditing of your FBA inventory can be an extremely tedious and time-consuming process. Thankfully, automating the auditing process can save you significant time while optimizing your inventory management.

Table of Contents

Why Automated Auditing is Crucial for Amazon Sellers

  • Missing or lost inventory is a major problem with Fulfilled by Amazon (FBA). Items can be misplaced in Amazon’s massive warehouses or damaged and written off without seller notification. This “lost” inventory can amount to thousands in lost potential revenue. Regular audits quickly identify missing products so sellers can file claims with Amazon.
 
  • Damaged inventory is another big issue, especially with improper warehouse handling. Items like electronics or glassware can be accidentally broken at fulfillment centers. Without audits, these damaged products may go undetected and never get reimbursed or written off properly. Auditing ensures damaged goods are identified so sellers can remove them from inventory and recoup losses.
 
  • Inaccurate inventory counts are common with FBA as shipments and warehouse processes create discrepancies between actual and recorded stock levels. This leads to out-of-stock issues where items show as available but aren’t, resulting in missed sales. Audits align recorded inventory with actual quantities on-hand so proper stock levels are maintained.
 

In summary, routine auditing through automated solutions can identify lost/damaged goods and inventory count errors that create substantial yet avoidable profit losses for FBA sellers. This allows discrepancies to be flagged quickly and accurately so corrective action can be taken.

Step-by-Step Automated Amazon FBA Auditing Process

Automated auditing leverages advanced software, analytics, and technology like barcode scanning to streamline the process:

     1. Data Collection & Analysis:

  • The software gathers your Seller Central data and identifies inventory count discrepancies that indicate issues.
 

     2. Physical Inventory Counts:

  • Leverage barcode scanning devices to rapidly conduct on-site inventory counts and reconcile them against records.
 

     3. Root Cause Investigation:

  • Thoroughly investigate discrepancies to pinpoint underlying issues, whether damages, misplacement, theft, or other factors.
 

     4. Audit Reporting:

  • Provide detailed audit reports showcasing findings, recommendations, and steps to reconcile your inventory records.
 

      5. Reimbursement & Compliance:

  • File reimbursement claims for any missing/damaged goods. Ensure labeling and packaging meet Amazon’s requirements.
 

Key Discrepancies Detected Through Automated Auditing

Some common inventory issues that automated audits identify:

Missing/Lost Inventory:

  • The software indicates inventory listed in records but missing physically. Critical to identify and claim reimbursements.
 

Damaged Goods:

  • Audit scans pick up on products damaged in FBA centers and customer returns needing write-offs.
 

Packaging/Sizing Issues:

  • Audits identify items not meeting Amazon’s strict prep and sizing guidelines to avoid suspensions.
 

Labeling Errors:

  • Scans detect improper or missing FNSKUs, barcodes, and other Amazon labeling requirements.
 

Best Practices for Inventory Management

In addition to auditing, sellers should adopt inventory management best practices:

  • Perform periodic inspections of products before stocking FBA centers.
 
The inspection might include checking for damage, ensuring the products match the quality standards, and verifying that the items comply with Amazon’s FBA inventory requirements. Periodic inspections help in preventing returns and negative feedback from customers due to product defects or shipping wrong items.
 
  • Stress test product packaging and make improvements as needed.
 
Stress testing packaging means subjecting the product packaging to conditions that simulate handling, shipping, and storage environments to ensure that it can withstand the rigors of transit and storage.
 
  • Implement tracking tools to monitor inventory levels and turnover.
 

Tracking tools are essential for real-time visibility into inventory levels, helping to prevent both overstocking and stockouts. These tools can provide insights into inventory turnover rates, which can inform purchasing and restocking decisions. They might integrate with FBA systems to trigger alerts when inventory reaches a predetermined threshold, allowing for timely replenishment.

  • Maintain organized inventory records using SKU management software.
 

SKU management software helps to organize and manage stock keeping units (SKUs) for efficient tracking and retrieval. It can help e-commerce sellers keep accurate records of their inventory across different channels and warehouse locations. The software typically includes features for categorizing products, tracking inventory levels, and generating reports, which can be used for forecasting and inventory planning.

Automated Auditing Protects Your Amazon Business

With so much riding on inventory accuracy and compliance, automated auditing is invaluable:

  • Recover potentially thousands in reimbursements for lost/damaged goods.
 
  • Avoid profit losses from out-of-stock and compliance violations.
 
  • Gain visibility into your true inventory health and nip issues early.
 
  • Optimize inventory tracking and prevent costly errors.
 

Take control of your Amazon business’s success with automated auditing. Contact the experts to learn more!

Bottom Line

Getting a handle on your Amazon FBA inventory can be overwhelming without the right support. Automated auditing solutions make staying on top of your inventory health, compliance, and profitability achievable.

Tactical Logistic Solutions are the experts when it comes to optimizing Amazon sellers’ auditing and inventory management. Contact Tactical Logistic Solutions today to learn more about their auditing and how they can help take your Amazon FBA business to the next level!

Frequently Asked Questions (FAQs)

What is Automated Auditing?

Automated auditing is the use of advanced software and analytics to automatically review your Amazon FBA inventory for discrepancies, thus saving time and improving accuracy.

Why is Automated Auditing Important for Amazon Sellers?

Automated auditing helps Amazon FBA sellers identify inventory discrepancies that can lead to lost revenue, damaged goods, and out-of-stock issues. It’s a more efficient and accurate approach compared to manual auditing.

How Does the Auditing Process Work?

The automated auditing process involves data collection and analysis, physical inventory counts via barcode scanning, root cause investigations for discrepancies, detailed reporting, and filing for reimbursements and compliance checks.

What Kind of Discrepancies Can Be Detected?

Automated audits can detect various kinds of discrepancies including missing or lost inventory, damaged goods, packaging and sizing issues, and labeling errors.

How Can I Contact Tactical Logistic Solutions?

You can contact Tactical Logistic Solutions via their website or through their customer service hotline to learn more about their automated auditing services and how they can help optimize your Amazon FBA inventory management.

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