75+ YEARS AS A FAMILY OWNED BUSINESS

The Goldilocks Zone of Amazon FBA Sell Through

Where can you start to get FBA metrics “just right”?


If you are an Amazon seller like me, you spend a lot of time looking at your Amazon Inventory Dashboard. It includes the key metrics such as Excess Inventory, FBA sell-through and IPI. Ask any Amazon seller with a substantial amount of inventory in FBA and they probably know their current metrics at all times.

We used to obsess over each and every movement. While it helped us understand what we needed to do to impact each metric, it did not lead to an overall FBA inventory management strategy. We felt like we were just squeezing the air from one side of a balloon to the other. Fix this metric... then that one will break.

Over time we started to look at our metrics with less precision and more within a range. We call it the Goldilocks Zone (yes, it’s from NASA), or the zone where things flourish and, as the fairy tale says, are “just right.”

Take for example FBA Sell Through. If our FBA Sell Through gets too high, we are in trouble. Every time our FBA Sell Through exceeded a certain level, we celebrated as sales were rocking. Then two weeks later the sales hangover started. When FBA Sell Through was too high, we were not feeding enough to FBA and a big sales decline was on the horizon. 

On the other end of the spectrum, if our FBA Sell Through gets too low, we have too much inventory at FBA. In a few weeks, our overall metrics start to degrade and we are forced to take action.

So for FBA Sell Through, it's all about the Goldilocks Zone. As long as we are in the zone and our other FBA metrics maintain a healthy level, our business flourishes. No fairy tale.

Below is the chart of our actual FBA Sell Through prepared from our Data Warehouse. We can review at a summary level like below, or drill down to any level, including ASIN, to find patterns. Some pretty interesting things appear when you look at FBA Sell Through by color or size!

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