Inventory Planning
Amazon Prime Day is not an ordinary shopping day. Your product is going to get more visits than at any other time of the year and, consequently, more chances of sales.
Therefore, to avoid stock-outs, sellers operating under the Fulfillment By Amazon (FBA) option must have their inventory ready to arrive at fulfilment centres 2-4 weeks before Amazon Prime Day. For instance, last year, UK sellers had to ensure that Amazon's logistics and distribution centres had all inventory on 6 June, 15 days before the event.
As you see, preparing for Amazon Prime Day is not something you can leave to the last minute, as you need to have your inventory secured and organised weeks in advance. This planning becomes even more important when facing a supply chain crisis like the one we are experiencing today. Buying your inventory in advance will help reduce the uncertainty created by carrier shortages, delivery delays and raw material shortages.
However, the investment required to purchase inventory so far in advance is not a cost that is affordable for everyone and can lead to internal strains on a company's cash flow.
To help you improve your company's working capital cycles, RITMO has developed an invoice financing solution: RITMO Invoice Financing. Through this solution, sellers can purchase inventory when they need it and RITMO will take care of the payments by paying suppliers directly. In this way, sellers decide when to pay each invoice, according to their needs.
