How to Liquidate Excess Inventory on Amazon?
How to Liquidate Excess Inventory on Amazon?
Being an Amazon seller, you may likely consider liquidating your excess inventory at some point in time. Clearing stock may be a common practice in running retail businesses, however, it can sometimes get very complicated and time-consuming.
For a seller, to sell your excess inventory stored in your Amazon inventory will impede income, eat up your resources and disrupt your bottom line growth immensely. It also hinders business investments and overall profits. Excess liquidating inventory requires plenty of effort and innovation as there’s no one-size-fits-all solution for Amazon sellers.
If you’re looking for an innovative way to get rid of excess inventory in your Amazon business, then you must liquidate inventory on Amazon.
What is Amazon FBA liquidation?
FBA Liquidations is designed by Amazon to assist FBA sellers in regaining value from customer-returned products and excess stocks. This Amazon liquidation program has proved to be immensely useful for sellers as they now not must pay storage fees for obsolete sell inventory products left within the Amazon warehouse liquidation. Amazon inventory liquidation program is only for US sellers and non-US sellers running their Amazon business within the US marketplace. The FBA Liquidation may be a profitable way of eliminating unsold items to sell your liquidate amazon inventory.
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How to liquidate excess inventory on Amazon?
1. Drop your prices
Perhaps the foremost obvious way for selling excess inventory is by providing a huge discount on your retail price. You can favour gradually reducing your price without immediately taking a nosedive. Plus, you’ll be able to manage the pricing directly in Seller Central. Or, you’d better match your competitors’ lowest price, match the buy box price, or manually set the value yourself.
Also, if you employ the fee preview column to look at the potential losses resulting from the lower prices you’re considering, you’ll save a good amount of cash.
2. Increase your PPC budget
You might call this a last-ditch effort or a prayer, but if you’re not ready for a price drop, bumping up your PPC (pay-per-click) spend can be the solution you’re searching for. You’ll continue traditional keyword-targeted PPC campaigns, or select Sponsored Products or Headline Search Ads. This option comes at a price, though. And if there are significant flaws along with your product and/or listing, these efforts may not offer you the ROI (return on investment) you’re expecting.
3. Run a giveaway
If you’re planning to run a giveaway, then you must try giveaway inventory liquidation strategies. And whether or not your goal is to induce eliminate products rather than boost your product ranking, this method could boost awareness of your brand.
In addition, if you’re reaching out to sell a replacement product under an identical name, this solution could provide it with some immediate credibility.
4. Sell on deal sites
By moving your excess inventory liquidators over to a platform like eBay, or Shopify, there’s an opportunity you’ll still leave with a profit.
However, to sell your product elsewhere, you’ll create a removal order within Seller Central. This can officially move your liquidate stock from Amazon’s warehouse to its next destination. You’ll have to coordinate those logistics though, and it comes at an extra cost.
Depending on your business and products, you may also sell excess inventory on your website.
5. Sell to your competitors
Not many consider this scenario, but it’d just be your saving grace! Depending on your product–its category, unique features, and branding–you may be able to sell your stock to a competitive brand selling the identical product. The more basic and unmarked your product is, the likelier it’s to seek out a replacement home with the competition.
But ensure your negotiation skills are strong!
You’ll want to sell your stock as near cost as possible to reduce your loss, since you may be responsible (inevitably) for the removal order fees related to the redistribution of products from the sale.
6. Sell to a liquidator
The biggest perk of selling off your stock to a liquidator is that it requires little to no work on your end.
Amazon liquidator has their e-commerce network across selling platforms, and they can easily find brand new homes and new customers for your product.
Keep in mind, though, that you just don’t have any control over what happens to your product after it leaves your hands.
Plus, reselling your product to a third-party liquidator means you continue to have the potential to create back a touch little bit of your initial investment.
7. Destroy your inventory
If every other option on the table isn’t well worth the effort, your best bet is to send your stock to its final destination: The Dumpster.
This is especially useful if you sell on Amazon during a marketplace apart from the US or the United Kingdom.
And while you’ll fill out a disposal request (which is analogous to a removal request), disposal fees per item are slightly not up to the removal fees.
So, rather than returning your stock to yourself or a replacement seller, this can be a call for participation to destroy your remaining amazon inventory clearance. you’ll submit your request in Seller Central, through the ‘Inventory Management Options’ tab.
Ultimately, if you’re still progressing to using the identical branding, you don’t want to harm your brand, which is why this was included as a viable option.
Destroying your stock means you remain up to the mark of what happens thereto, and nobody can harm your brand’s reputation.
Get creative!
Removal request fees inherit play with this feature too, so detain mind that those will come up when you’re letting Amazon know where to send your stock.
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How much do liquidators pay for inventory?
An Amazon liquidator charges for inventory about 5% to 10% of its average selling price (ASP).
Final thoughts on liquidating Amazon inventory
Remember, it’s not uncommon for a business to run into a situation where a product is underperforming, and therefore the seller finishes up sitting on the amazon excess inventory. And when that happens, sometimes the sole option is liquidating to sell surplus inventory. So, if you’re navigating this for the primary time, it’s not an indicator that your business is failing! It’s simply a learning experience, and a chance to manoeuvre onto your next venture. Because of this, you’ll be a higher business owner.
Moving forward you’ll have the foresight to avoid similar situations by practising better inventory liquidation services, or implementing a number of the techniques listed above sooner instead of later!
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