SOH (Sellable on Hand Inventory) - Amazon Glossary

Sellable on Hand Inventory (SOH) is a critical inventory management metric representing the total quantity of units currently available for immediate purchase and fulfillment within Amazon’s network. Unlike total inventory, SOH excludes units that are damaged, expired, under inspection, or being transferred between fulfillment centers.

Business Impact: Why SOH Matters

Sellable on Hand Inventory directly dictates your available-to-purchase status; if this number hits zero, your listing loses the Buy Box and organic rankings plummet. Maintaining an optimized SOH level ensures steady cash flow by balancing the need to meet consumer demand without triggering excessive aged inventory surcharges.

The SOH Calculation

To determine your true Sellable on Hand quantity, you must subtract non-sellable units from your total physical inventory recorded at the warehouse.

$$SOH = Total\ Physical\ Units - (Unsellable\ Units + Reserved\ Units + Inbound\ Receiving)$$

Where:

• Total Physical Units: All units physically present in the fulfillment center.

• Unsellable Units: Items marked as defective, customer-damaged, or expired.

• Reserved Units: Items tied to pending customer orders or currently in FC transfer.

• Inbound Receiving: Units that have arrived at the dock but have not yet been processed into "Available" status.

Real-World Scenario: SOH in Practice

The Correct Approach:

An Amazon seller in the "Home & Kitchen" category stocks a popular silicone spatula. They have 1,000 units at the fulfillment center. However, 150 are being transferred to a West Coast warehouse, and 50 are pending shipment to customers. Their Sellable on Hand is 800. The seller uses this 800-unit figure to calculate their days of supply and realizes they need to trigger a restock shipment within 5 days to avoid a stockout.

The Common Mistake:

A seller looks only at their "Total Inventory" of 1,000 units. They assume they have plenty of stock for the upcoming weekend sale. They fail to realize that 400 of those units are "Unsellable" due to a packaging defect discovered during check-in. Because they didn't monitor SOH specifically, the listing goes "Out of Stock" mid-sale, leading to a loss of momentum and a drop in Best Seller Rank (BSR).

FBA vs. FBM Context

In the Fulfillment by Amazon (FBA) model, SOH is calculated and reported by Amazon's internal systems. Sellers must monitor the Manage Inventory dashboard closely to see real-time shifts between sellable and reserved statuses.

In Fulfillment by Merchant (FBM), the seller is the "source of truth." SOH is managed within the seller’s own Warehouse Management System (WMS). The primary risk for FBM sellers is an "oversell" situation, where the SOH reported to Amazon exceeds actual physical stock, leading to order cancellations and potential account suspension.

Strategy: Optimizing SOH for Profitability

Effective management of SOH requires a deep dive into inventory turnover rates. High SOH levels might seem safe, but they often lead to monthly storage fees and, eventually, the dreaded Q4 surcharge if stock doesn't move quickly.

• Aged Inventory Management: Any SOH unit sitting for more than 180 days should be considered for a liquidation or "Outlet Deal" to reclaim capital.

• Fulfillment Center Transfers: During FC transfer, your SOH technically decreases as units are moved to be closer to end-customers. While Amazon often keeps these "Available" for purchase with a future ship date, your conversion rate may dip due to longer delivery windows.

SoldScope Expert Tip

Watch the "Reserved" sub-status during peak seasons. Often, a large discrepancy between your Total Inventory and SOH isn't due to sales, but rather Amazon's internal re-distribution. If you see a massive spike in Reserved units without a corresponding spike in sales, Amazon is likely moving your goods. Do not lower your prices to "stimulate" sales during this window; your "Available" SOH is low, and you risk a stockout before the transferred units become sellable again.

FAQ

How to check Sellable on Hand inventory in Seller Central?

Navigate to the "Inventory" tab and select "Manage FBA Inventory." Look for the "Available" column; this represents your current SOH. For a more detailed breakdown, download the "Daily Inventory History" report.

Why is my sellable inventory lower than my shipped quantity?

This usually occurs due to items being in Inbound Receiving or FC transfer. It can also indicate units marked as "Unsellable" due to warehouse damage or customer returns that were not fit for resale.

Does SOH affect my IPI score?

Yes. Your Inventory Performance Index (IPI) is heavily influenced by how efficiently you manage your SOH. Excess SOH (overstock) lowers your score, while maintaining just enough SOH to meet demand improves it.