SOH

SOH is one of the most important inventory health metrics in Amazon’s retail and vendor reporting systems.
It measures the real-time stock level of available, sellable units, excluding items that are unsellable, under investigation, or otherwise restricted.

In simpler terms, SOH tells both Amazon and vendors how many units are physically available and ready to fulfil customer orders at any given time.

SOH Components:
SOH reflects all in-stock inventory currently stored within Amazon’s network that can be sold to customers:

• Units in Fulfilment Centres (FCs).
• Units in inbound receiving that have completed check-in.
• Units in Vendor Flex (VF) or Direct Fulfilment (DF) facilities if designated as available.

Excluded from SOH:

• Units in transit to Amazon.
• Defective or damaged inventory.
• Customer returns not yet processed as sellable.
• Reserved stock (allocated for pending orders, investigations, or recalls).

Typical Formula:

SOH=Total Units in FCs−(Unsellable+Reserved+Damaged)

Where It Appears:

• Vendor Central → Operational Performance → Inventory Reports
• Amazon Retail Analytics (ARA / ARA Premium) dashboards
• Used in Weeks of Cover (WOC), Sell-Through Rate, and Replenishment Planning metrics

Key Uses of SOH:

1. Demand Planning:
   • Helps vendors align replenishment shipments with actual stock availability.
2. Performance Tracking:
   • Core input for metrics like Instock %, OOS (Out-of-Stock), and WOC (Weeks of Cover).
3. Forecast Accuracy:
   • Compares Amazon’s on-hand stock with sales velocity to identify supply risks.
4. Retail Readiness:
   • Ensures ASINs remain continuously available for purchase and Prime delivery.

Benefits for Amazon:

• Operational efficiency: Enables accurate fulfilment and replenishment decisions.
• Customer experience: Reduces out-of-stock events.
• Financial accuracy: Provides real-time valuation of active inventory.

Benefits for Vendors:

• Visibility: Transparent view of stock levels across fulfilment locations.
• Proactive management: Supports timely replenishment and avoids OOS penalties.
• Performance insights: Helps evaluate forecast accuracy and overstock risk.

Challenges:

• Timing gaps: Inbound and receiving delays can temporarily distort SOH data.
• System sync: Differences between vendor ERP and Amazon reporting systems.
• Sellability errors: Items incorrectly flagged as unsellable may reduce available SOH.

Example:
A vendor’s ASIN shows:

• 10,000 total units in FCs
• 500 unsellable (damaged or returned)
• 1,000 reserved (pending orders or investigations)

SOH=10,000−(500+1,000)=8,500 sellable units

Why It Matters:
SOH is the foundation of Amazon’s in-stock management, directly affecting Buy Box visibility, sales velocity, and customer satisfaction.
Monitoring SOH helps vendors avoid costly OOS (Out-of-Stock) or CRaP (Can’t Realise a Profit) situations while maintaining efficient inventory flow.

In short:
SOH (Sellable on Hand) is the quantity of inventory available for sale at Amazon fulfilment centres - excluding unsellable, reserved, or in-transit units - and serves as a key indicator of in-stock health and replenishment needs.