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Managing old inventory? It’s a tough task for every Amazon seller at some point. Products that don’t move fast enough can pile up. This brings problems, including higher storage costs and tying up your cash. In this article, we will look at why old is a big issue for Amazon sellers & how you can fix these stock issues easily.
The old Inventory cause many problem which detail is as under.
Increased Storage Fees
When you use Amazon’s Fulfillment by Amazon (FBA), you pay storage fees based on how big & heavy your items are. The longer they sit in the warehouse, the more fees you rack up. After one year, long-term storage fees kick in. This hits your profits hard! Old inventory that doesn’t sell fast can add these costs, cutting into what you make.
Aging Products Lose Value
Trends change all the time! What is cool today might not be it tomorrow. Just think about things like gadgets, clothes, or seasonal items. Over time, older products lose their charm for customers. To get them sold, you may need to drop the price. But this cuts down your profit and can even lead to losses.
Cash Flow Problems
When too much cash is stuck in unsold inventory, it limits your chances to buy new products. No cash flow means it’s tough to keep buying fast-selling items or testing new things that may do better. Keeping an eye on your inventory turnover is super important for maintaining a healthy Amazon business.
Analyze Your Inventory Regularly
Take a good look at your inventory often! This is the first step to spot slow-moving products. Amazon has a tool called the Inventory Performance Index (IPI). It helps measure how well you manage your stock. If your score is low, then it’s time to act! Monitor which products are sluggish or getting old. Quick action can save you from extra storage fees!
Run promotions or discounts.
One of the best ways to clear out old inventory is with promotions! Offering discounts or special deals can get customers interested in buying items they may have skipped before. Here are some fun promotions to think about:
Lightning Deals:
These are limited-time offers with big discounts! They create a sense of urgency for shoppers. But remember—there’s often a fee to run one.
Deals:
These last longer than lightning deals—days, even weeks! You can set reduced prices so customers have time to find your product, especially during big shopping events like Black Friday or Prime Day.
Coupons:
You can give either percentage-based or fixed-amount discounts using coupons. They stand out & catch attention and help you decide how much off you’d like to offer.
Amazon Giveaways:
Running a giveaway by featuring your old stock as prizes can boost interest and excitement! It might lead to more sales later on.
Use Amazon FBA Liquidations
Promotion not working? Think about trying Amazon’s FBA Liquidations program! This lets you sell excess stock to wholesale liquidators who buy unsold items from you. While profits might be small, it quickly recovers some cash & clears space for items that sell better.
Bundle Products
Bundling is another smart strategy! If you have slow-moving stuff lying around, pair them up with popular items to create value bundles. Let’s say you bundle a phone accessory with a cute phone case—that looks like a great deal! Bundles attract customers looking for steals & help move old stock more quickly.
Remove or Dispose of Inventory
Sometimes drastic steps are necessary. If nothing else works, consider removing or disposing of the old inventory! Amazon lets sellers create removal orders where unsold stuff gets shipped back or tossed out by them. It may feel like giving up but getting rid of excess stock saves money on fees and allows focusing on fresh & profitable goods!
To clear out older stock effectively, here are some popular promotional ideas:
Discounts (Percentage or Fixed):
Discounting is the go-to way for luring buyers in! Whether it’s by percentage off or fixed amounts, this creates urgency and prompts sales refreshingly!
Buy One Get One Free (BOGO):
BOGO promotions make customers feel special! Who doesn’t love free stuff? It helps move two products instead of just one!
Free Shipping:
Customers really care about shipping costs! Offering free shipping can sway buyers toward older products!
Bundle Deals or Value Sets:
Bundling older products with ones that are new and loved creates attractive offers!
Loyalty Rewards:
If you have regular customers, give them exclusive deals on old items—it strengthens bonds & clears stock!
Limited-Time Price Matches:
Matching competitor prices just for a short time can drive urgency too—customers don’t want to miss out on savings!
If you’re facing major problems with lost, damaged, or mishandled goods on Amazon—you could be eligible for compensation! Here’s how to ask Amazon for help with claiming it:
If you’re using Fulfillment by Amazon (FBA), Amazon takes care of your products. They are in charge, so if they lose or damage your inventory, they might reimburse you. It’s a good idea to look over Amazon’s FBA Reimbursement Policy. This will help you see when and how they pay sellers for problems like damaged items, lost shipments, or stuff that can’t be sold.
File a Case in Amazon Seller Central
Head on over to Amazon Seller Central. Then, open a case through the Help section. Be sure to include lots of details about the problem. This means mentioning things like product details, affected inventory, and any proof of the issue.
Make it clear what happened (like if there was inventory loss, damage, or shipping delays) and ask for compensation based on Amazon’s rules.
Use the FBA Inventory Adjustments Report
Take a look at the FBA Inventory Adjustments Report. This can help you find any mistakes in your inventory. The report tells you about changes due to damage, loss, or adjustments made by Amazon.
If you see things that aren’t right and Amazon hasn’t fixed them yet, this report can be used as proof when you file for reimbursement
Request Reimbursement for Lost or Damaged Goods
When goods are lost or damaged, share specific details like the shipment ID and product ASINs. Don’t forget the dates when the issue occurred. It’s really important to document all missing or damaged items when asking for money back.
Amazon usually checks claims and processes them within 45 days. Be clear & concise in your communication. If needed, follow up!
Monitor Inventory Health Regularly
Keeping an eye on your inventory health helps avoid big problems down the line. The Inventory Performance Index (IPI) is a handy tool to spot issues early on. Then, you can take action before things go haywire.
Seek Escalation for Severe Cases
If they don’t solve your claim satisfactorily, ask Amazon Seller Support to take another look at your case with higher-level support. For big problems, sellers can also reach out to Amazon’s Executive Seller Relations for quicker help. This option is great if your first attempts don’t work out.
Use Professional Help
Sometimes it’s tough to get compensation or manage big claims on your own. You can think about hiring third-party services that focus on Amazon reimbursement claims! They know how to handle tricky cases & often have better success rates with getting money from Amazon.
Appeal Decisions if Needed
If Amazon says no to your compensation request, don’t give up! You can appeal their decision. If possible, provide extra documents like evidence of loss or damage. Stay persistent and keep following up until it gets resolved.
Be proactive:
Always check your inventory & catch potential issues early.
Document everything:
Keep detailed records of shipments and any communications with Amazon.
Use Amazon’s tools:
Their reports & Seller Central tools can help you manage issues and file claims
Follow up:
It’s important! Stay in touch and follow up regularly to make sure they process your claim.
If things go wrong, having clear records and keeping a steady approach when talking to Amazon will help you get the compensation you’re supposed to have!
While those strategies above can help fix current inventory issues, it’s super important to avoid them later on too! Here are some best practices:
Forecast Accurately:
Use past sales data to guess demand accurately so you won’t overstock.
Seasonal Planning:
Pay attention to seasonal items & don’t over-order products that only sell at certain times.
Diversify Product Range:
Offering different kinds of products lowers the risk of having old stock & gives you a chance to try new trends.
Old inventory is a common headache for many Amazon sellers! But it doesn’t have to sink your business. By using promotional tools from amazon like special deals and keeping track of your stock well, you can clear out extra items quickly! Taking care of your inventory helps keep cash flow healthy & reduces storage fees too.
What is considered “old inventory” on Amazon?
Old inventory means products that haven’t sold while sitting in an Amazon warehouse for a long time—usually over 90 days starts racking up costly storage fees! After 365 days? Long-term fees hit hard!
Why is old inventory a problem for sellers?
Old stock increases costs and hurts profits because it takes space away from faster-selling items – plus it ties up cash!
How do long-term storage fees work?
If items sit in fulfillment centers for more than 365 days—boom! You get charged higher long-term storage fees!
How can I stop my inventory from getting old?
Look at sales data regularly! Predict demand right so you don’t overstock seasonal stuff! Also consider tools like the IPI report.
What promo tools does Amazon offer for clearing old stock?
Some helpful ones include: lightning deals (huge short-term discounts), regular deals (longer discounts), coupons (percent off or fixed amounts), & even giveaways!
Which promotions are best for getting rid of old stock?
Effective options include straight discounts (either percentage or fixed amounts), BOGO (Buy One Get One Free), free shipping deals, bundles, & clearance sales!
What is FBA Liquidations? How does it help clear old goods?
FBA Liquidations lets you sell leftover items to liquidators; this way, you recover some cash & clear space for new stuff!
How do I bundle products?
Bundling means pairing older goods with popular items! For example: put together an old phone case with a trendy charger.
Should I remove outdated stock from warehouses?
If promos or liquidations don’t work—you might need taking action! Create a removal order; this allows items back home or letting amazon dispose of them.
How do I avoid these problems later on?
Focus on forecasting accurately! Smart ordering helps too—regularly review data 📝 as well as seasonal planning & diversifying what you’re selling!
