Amazon has over 1,761,784 sellers with products listed for sale. They generated $118.57 billion last year alone. Yet, even Amazon’s most successful sellers overstock on products the public rarely consumes.
If you’re in this position, it’s time to learn what to do with excess Amazon inventory.
Proper inventory management protects your bottom dollar. When you order too much of one product it sits on a shelf and leads to loss. When your inventory matches customer demand, it promotes an organized warehouse.
An organized warehouse is a productive warehouse. Products move at a profitable pace, supporting a healthy ROI.
If you’ve got too much excess Amazon inventory, you’re probably curious about how to get rid of it. Find out here how to get things in check.
1. Excess Amazon Inventory Calls for a Short-Term Dip in Price
You may have a product that customers love but move at a slow pace from the warehouse. A popular reason for this is the price.
Customers may be purchasing a lot of this product, but they’re buying from cheaper outlets. Want to see your inventory move? Lower the price. A temporary dip in price helps move stalled products on the shelves.
Start with a 20% discount. On special dates—holiday blowout sales—offer BOGO. Consumers love free stuff even if it means paying full price for one product.
Once you get inventory moving, you can return to a market price that allows you to make a profit.
2. Take Advantage of the Amazon Outlet
Amazon understands the needs of its sellers. To help them keep inventory under control, they can opt to list products on Amazon Outlet.
The Outlet is a section within Amazon where sellers can sell overstocked items at a discounted price. This is similar to the clearance section at a local department store. You also have the option of adding a digital coupon.
This way the customers know the discount is for a limited time. The Outlet also brings awareness to your brand.
One of the smartest tactics for moving products off the shelf is by bundling. Bundling is offering one product alongside another for a package price.
You pair an unpopular product with a bestseller. Make sure the product pair appeals to the needs of consumers or the bundle may flop. You can increase the price of the bundle a bit. Not much though.
You don’t want to turn customers away from your bestseller.
4. Sell to Your Competitors
Don’t freak out. This idea will not put you out of business. It’s actually a business move that most sellers overlook.
If a competitor has success moving a certain product for a set price, sell them your inventory. Selling to a competitor keeps you from killing your bottom line. You can sell your outdated inventory at a warehouse price that makes a profit.
It’s like supply and demand between sellers. Both of you win.
If that doesn’t work, consider organizing with Legacy Seller. Check out their reimbursement process right on their site, https://legacyseller.com/.
Get Your Product Line in Order
Don’t lose money housing overstocked products. Consider these tips on how to manage excess Amazon inventory the smart way.
Let us give you more great business ideas like this. Check out our business guide for hacks on building a business model that sells.