facebookThe Amazon Seller’s Guide to Effective Inventory Liquidation

Top 5 Proven Ways To Liquidate Excess Amazon Inventory

Top 5 Proven Ways To Liquidate Excess Amazon Inventory


At some point, you will probably consider liquidating excess inventory if you're an Amazon seller. In order to run a retail business, clearing stock is a typical practice, but it can be time-consuming and complicated.

It doesn't matter whether you're an FBM seller or an FBA seller; excess inventory in your Amazon inventory will cripple your cash flow, consume your resources, and wreak havoc on your bottom line.

Business investments and overall profitability are also hindered by it. Your storage costs increase as your redundant stocks are stored for longer periods of time. There is no one-size-fits-all solution to liquidating excess inventory on Amazon, so it takes a lot of effort and innovation.

In case you have excess stock in your Amazon business, or a slow-selling item that you need to liquidate, you should be aware of your options to liquidate your inventory. Well, let's see more ways about liquidating your Amazon inventory, in this blog.  


When You Should Liquidate Excess Amazon Inventory

We'll start by looking at the two main issues that may motivate you to liquidate your excess Amazon inventory.


1. Dead Inventory: OMG!! You've got a Flop Product

Hard to digest! But sometimes, your product choice may be out of trend. In that case, your product will not perform well. In a nutshell, dead inventory is a product that does not sell. You may face this problem from the moment you start selling the product, due to inadequate research or other reasons. The product may have once been popular, but its sales are now declining.

It might surprise you to learn that most products have a limited life span, so this is not unusual. In any case, deadstock drains your resources. The longer you hold on to it, the bigger the loss will be. Liquidate as soon as possible in this situation.


2. Costly Inventory: Long-term Fees Payable

As part of Amazon's FBA program, your product may be stored in one of its warehouses. While FBA works well when sales are steady, when sales slow down, the warehouse simply becomes a storage facility rather than a distribution center.

It will charge you extra storage fees if your items don't move. Amazon only wants to store products that sell. Your inventory should be recalled if this occurs to avoid storage fees. Consider the best way to dispose of the stock after you have it back in your own hands.

Now I'm going to give the top 5 proven ways to liquidate excess inventory on Amazon.


Top 5 Proven Ways To Liquidate Excess Amazon Inventory

1. Reduce Your Price

This is probably the quickest and easiest way to liquidate your stock. It's possible to reduce your price over time, or to offer deals consumers can't refuse!

In either case, a sale is a traditional way to reduce excess inventory levels. There are options to offer a percentage or fixed amount off, for example, 50% or $10.

The alternative is to offer Buy One Get One Free (BOGOF) or simply sell the excess products in packs of two, three, or four, depending on how fast you want to sell the stock.

Consumers typically stock up on products that work well with bulk sales, such as beauty products, clothes, accessories, and food or drink items.


2. Increase Your PPC Ad Budgets

Maybe you aren't getting enough people to know about your stock, so it doesn't sell. Your PPC advertising bids can be increased to push the product further if this is the case.

It may seem like a lot of money to spend at first, but it can eventually be worth it if you do it in conjunction with a sale or similar promotion. So you won't add to your losses unnecessarily, set a budget and stick to it.


3. List your excess inventory on Deal Sites

Even if your product doesn't sell well on Amazon, it may still sell well on alternative platforms. Many different options are available, including eBay, Etsy, Walmart, and Craigslist-not to mention Facebook Marketplace, Shopify, and Wish.com.

Despite this, you may still be able to make some profit. Perhaps you simply chose the wrong platform when you first started? In order to sell through other channels, you must remove your stock from Amazon. There is a charge for this, but you will save on storage fees.


4. Sell your excess stock to a liquidator

Liquidating your stock is perhaps the simplest thing you can do. Simply sell everything to a liquidator. Companies that liquidate excess inventory can sell it quickly and easily - it's what they do all day, every day.

Despite this, you probably won't get the best deal on your stock and you will not be able to control what the liquidator does with it after it is in his hands. Since Amazon has now discontinued its own liquidation service, you will need to work with a third party if you want to sell to a liquidator.


5. Sell excess stock to the competitors

Certainly, this is one of those crazy ideas that slip under the radar, but if it works it could be fruitful! The marketing strategy you choose depends on the nature of your product, such as whether it is your own brand, someone else's brand, or unbranded.  

You have a better chance of offloading your product to a competitor if it is more generic. Let's face it, they're unlikely to buy stock with your logo on it. For this one, you'll need to work on your negotiation skills, since you want to get the price as close to your original cost as possible to minimize any losses.

You know, the starting point for every liquidation is choosing the wrong product. When you choose an unworthy product it will result in excess inventory or stocks remaining unsold.

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