Being an Amazon seller is difficult. Managing Amazon FBA inventory is one of the constant challenges a seller faces. There are plenty of reasons you may want to know how to liquidate Amazon FBA inventory.
Perhaps the FBA fees are eating at your profits. Additionally, the global supply chain has been unreliable in recent years and you have just received too much inventory. Lastly, you could just really need the revenue to pay bills or justify selling your business altogether.
Regardless of the “why”, we will recommend several tips and tricks on how to liquidate Amazon FBA inventory. These ideas boil down to giving up some profit to sell through your inventory at a higher volume.
Why It Is Important To Know How To Liquidate Amazon FBA Inventory
Selling on Amazon is an incredible way to elevate your product or brand. However, being an Amazon seller does come at a cost. This is especially true if you use FBA, or, fulfillment by Amazon.
In exchange for keeping inventory in Amazon’s warehouses and having Amazon fulfill your orders, they charge you fees. As inflation and fuel costs rise, so do seller’s fulfillment fees.
Therefore, you as a seller are incentivized to sell through your inventory as quickly as possible to avoid additional costs. Although, sometimes you face a situation where your products just aren’t selling.
Whether you tried to launch a new product and it needs help with an initial push or you miscalculated your inventory amounts, we are here to help you liquidate that Amazon FBA inventory as fast as you can.
When in doubt, get creative about how you offer savings. Stacking discounts via an Amazon coupon and a Prime-exclusive discount is a great way to catch shoppers’ attention.
Appeal To A Qualified Consumer
People love to find a deal of their own. We all know someone who doesn’t need an item but purchased it anyway because it was “a sale that couldn’t be passed up,” right?
Not All Coupons Are Redeemed
While this probably sounds expensive, it’s not as bad as you might think. For whatever reason, not everyone applies coupons on listings. Therefore, you may achieve a higher click-thru rate by offering stacked discounts without selling all of your units at the lowest possible price.
Partner With An Affiliate
Partnering with an affiliate is the fastest way to relieve your Amazon FBA inventory. While stacking discounts might catch people’s eyes that are already searching for a product on Amazon, affiliates are how many people get to Amazon in the first place.
There are a few different types of affiliate publishers to contact for a partnership. While all of these types are great ways to grow your business, some specialize in inventory liquidation.
First up are the review websites in your product’s niche category. These are a great way to get exposure to a qualified audience. However, they may not be fast enough to help serve your needs.
Review sites can publish a review of your product. They can also include your item in a list of the 7 best [insert your category] products on Amazon. Again, this will contribute to steady sales growth for your product if you find the right review website, but it won’t sell through your inventory quickly.
If you need your products sold immediately and are willing to compromise on profit, partnering with a deal brand is the most effective way to do so. While deal brands are likely less specific to your Amazon category, they captivate an audience that is seeking great prices. Due to the fleeting nature of deals, your sale velocity is likely to increase quickly.
As a shameless plug, we at Fat Kid Deals are a great example of a deal brand. Providing that your product and brand pass our standard evaluation, we help great deals see the light. If you have a deal-worthy coupon, price drop or Prime-exclusive deal, get in contact with us and see if we can help liquidate your Amazon FBA inventory.
Adjust Pricing Versus Competitors
Sometimes selling more inventory is easy to do by analyzing your competitor’s listings. If you are charging the same price as a lesser known brand compared to a household name in your category, dropping your price below those popular brands might even the playing field.
The beauty of Amazon is that you can inspect your competitor’s listings. If you’re charging $40 for the same product that’s also $40 at Nike, you won’t win over many customers. However, there is a large community of shoppers that want good quality at the best price possible. If you have good reviews and charge a little less, chance are that you’ll see a big influx in sales.
Create BOGO/Bulk Promo Deals
Depending on your product, offering bulk deals can be effective. Ask yourself, is my product something that people will likely buy more than once? If so, offering a buy-one-get-one deal is a great way to liquidate more of your Amazon FBA inventory.
This is also a seller favorite because you can usually offer this deal and still make a profit. If you have a “buy 1, get second 20%” promotion, you might sell the second pair for breakeven but the first pair is still sold at a profit.
Run An Amazon Outlet Deal
This is an underrated and lesser-known way to liquidate Amazon FBA inventory. Amazon Outlet has reimagined the traditional outlet mall setting. This is a sub-marketplace of Amazon that has amazing deals. Sellers can create an outlet deal and have their product featured in front of deal-hungry shoppers.
As much as Amazon puts customers first, this piece of Amazon was intentionally created to help liquidate inventory for sellers. Amazon notes that outlet deals “can increase sell-through, improve cash flow, optimize inventory levels, and reduce total storage fees.”
As you can see, there are plenty of ways to liquidate your Amazon FBA inventory. The five ways we suggest to speed up the liquidation of your products: stack discounts, partner with an affiliate, adjust pricing against competitors, create bulk promo deals and leverage Amazon Outlet. Partnering with an affiliate is the fastest way to get that inventory out of Amazon’s warehouse, but it’s far from the only option.