Clearing inventory is a standard procedure in retail organizations; however, it may become difficult and time-consuming if not done properly and efficiently.
Whether you are an FBM or an FBA seller, having too much inventory in Amazon inventory can negatively impact your development.
The liquidation of excess inventory on Amazon entails a great deal of work and creativity since there is no one-size-fits-all approach for Amazon merchants.
To do so, you’ll need to liquidate surplus inventory in your Amazon business. Learn how to effectively liquidate excess Amazon inventory employing the below mentioned method.
1. Reduce your price
Clearing out your inventory can be done by providing a significant discount on retail price.
For doing so, you will need to lower the pricing rather. Alternatively, you can opt to match the lowest price offered by your competitor, match the purchase box price, or individually set the price yourself.
In this way you will be able to save a significant amount of money if you utilize the charge preview column to see the possible losses that may arise from the cheaper rates that you’re contemplating.
2. Use Social Media
Social media advertisements function extremely effectively in union with Amazon’s in-app advertising. Suppose, if traffic increases through your core demographic by using social media channels such as Instagram, Facebook, Twitter, YouTube, and Pinterest, then buyer personality to Amazon listings is attainable.
In comparison to Amazon’s listing requirements, these platforms give a moneyed viewing experience. Don’t forget that active participation in such online communities is critical only, when they have the potential to provide something valuable to users.
Therefore, social media advertisements for liquidation are easily pushed from buyers to specific sites with compelling content and targeted offers that can direct them to those pages.
3. Increase your advertising budget
If you don’t want to cut your costs, you should consider raising your PPC spending. In order to attract more visitors to your listing, you need motivation to sell your extra inventory.
Expanding your advertising budget might be beneficial if you are running a deal or promotion. If there are problems with your goods or listing, be cautious about investing further money in promotion. Consider the dangers associated with taking this method since you may incur big fees without seeing the return on investment that you are hoping for.
4. Items should be bundled together
The practice of bundling is another common practice among sellers. You might want to explore grouping certain things together and selling them at a little cheaper price.
This is a fantastic bundling technique since all of the goods included in the campaign are closely connected to one another in terms of functionality. People who are interested in pre-workout supplements are also likely to be interested in other supplements that might improve their overall performance.
5. Use the FBA Liquidations Program to sell your items.
Amazon supports the use of the FBA Liquidations programme to help businesses deal with surplus inventory. The service is intended to assist Amazon sellers in recouping the value of outmoded or surplus inventory products that have lost their worth. Sellers can recoup a percentage of their cost of inventory (net recovery value) while eliminating the expense of monthly and long-term storage costs by selling their inventory. Sellers that engage in the FBA Liquidations programme will have their outmoded or surplus goods sold through with a wholesale liquidation firm as a result of the programme.
In other words, Amazon appoints a buyer (liquidator) for the things that sellers have judged superfluous and hence susceptible to liquidation in exchange for a fee from Amazon. Amazon contracts with the liquidators who participate in the programme, so these liquidators are unable to resale the FBA liquidated items on Amazon. The liquidators who participate in the programme sell both Amazon-owned and FBA inventory to downstream consumers. Read more about distribution leakage to discover more about why it’s so critical that all these Amazon-approved liquidators be unable to resell your items on the Amazon marketplace.com website. Other than the FBA Liquidations programme, sellers may recoup value from surplus inventory by selling it on Amazon.com’s Amazon Outlet website.
6. Increase your pay-per-click (PPC) spending.
A last-ditch effort or even a Hail Mary could be appropriate, but if you’re not ready to lower your prices, increasing your PPC (pay-per-click) expenditures might be the solution you’re searching for, according to some.
Increase your marketing budget to generate more people for your listing if you are having trouble. Stick with typical keyword-targeted PPC advertising, or experiment with Sponsored Products or Headline Search Ads to see if they work for you.
However, there is a fee associated with this choice. Furthermore, if there are substantial defects in your product and/or listing, such efforts may not result in the ROI (return on investment) that you want.
Recall that it’s normal for businesses to encounter situations in which a product is underperforming, and the seller finds themselves with an excess of inventory. Sometimes the only alternative available is to liquidate the Amazon inventory that has been accumulated.
This does NOT indicate that your company is failing just because you are learning how to use the system for the first time! All it is is a chance for you to learn from your mistakes and move on to your next endeavor.
You will become a better business owner as a result of this. As a result, you’ll have the foresight to prevent such circumstances in the future by practicing better inventory management or using any of the tactics outlined above as soon as possible!