Turning Inventory Nightmares into Cash with Chelsea Cohen, Co-Founder of SoStocked

In this episode of The eCommerce Profitability Show, host Dan Little is joined by Chelsea Cohen, Co-Founder of SoStocked.

Join them as they discuss:

Chelsea has been selling since 2014, being featured on platforms like the AM/PM Podcast, the Amazing Seller Summit, and the 7-Figure Sellers Summit, among others. She is passionate about optimising logistics and cash flow, believing that small changes can lead to significant impacts.

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Episode Highlights:

02:45 - 06:36 - The Key to eCommerce Profitability: For eCommerce entrepreneurs, managing inventory efficiently is crucial to avoid unprofitable outcomes due to excessive fees and misplaced stock. Key challenges include accurately tracking inventory quantities and locations, understanding the real costs of storage and fulfilment charged by platforms like Amazon, and predicting the necessary restocking times. Additionally, it's essential to understand all the fees involved, including those for advertising and peak times storage. To stay profitable, entrepreneurs must account for these costs in their pricing strategy and prepare for best and worst-case financial scenarios as their product moves through its sales lifecycle.

09:55 - 14:00 - Smart Strategies for Amazon Sellers: For Amazon sellers facing high fees from aged inventory, Chelsea recommends using the SBA Inventory Report available in Seller Central to identify older stock items. Instead of allowing products to continue increasing fees, consider liquidating these items to recover some cash despite potential losses, as it prevents further financial bleeding. Additionally, exploring marketing strategies like flash sales or discounts could be more profitable, helping move inventory quickly and improve cash flow within the next couple of months.

14:02 - 18:42 - Marketing, Inventory, and Finance: As the eCommerce landscape evolves into 2024, success relies on more than just adept marketing strategies. Recent shifts in the industry underscore the importance of mastering inventory management and financial acumen. In a market increasingly shaped by competition and regulatory changes, those who thrive will be those who excel not only in marketing but also in managing their inventory effectively and understanding the financial intricacies of cash flow, profit margins, and capital use.

22:55 - 30:15 - Optimising Amazon Inventory: When managing aged inventory on Amazon, placing a liquidation order can effectively reduce storage fees and prevent further losses, though you'll typically recover only about 5-10% of the selling price after fees. Amazon charges a reduced removal fee for liquidation, making it costlier to liquidate outside their system. Additionally, exploring profit forecasting tools can greatly enhance decision-making, especially by visually illustrating profitability across your entire catalogue and identifying low-profit items.

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