Sometimes as an Amazon seller, even your best laid plans go awry. A pandemic, recession or even just a drop in demand can leave you with lots of unsold goods. While it’s a good practice to replenish inventory ahead of peak season and anticipate delays, occasionally you’re left with overstock inventory that can become costly. Overstock inventory incurs storage fees, lowers your IPI score and takes away from capital you could be using elsewhere. Here we discuss how to liquidate your inventory effectively in order to recoup losses.
Steps To Take Before Liquidating
Generally speaking, liquidation should be a last resort. Naturally, you won’t be able to recover all the capital you devoted to overstock inventory—so you’ll want to make sure you’ve eliminated factors that could have caused the problem in the first place. If you can turn things around in time, you might not have to liquidate as much inventory as you thought.
The main factors that contribute to overstock inventory are
- A Lack of Competitive Pricing
Unfortunately for Amazon sellers, there are always competitors who will try to outbid you for a sale. If you’re not keeping an eye on the competition, they might start to offer a lower price, better reviews or simply a more professional-looking listing. Your sales could dip and cause overstock inventory, and all the while you could have avoided the problem in the first place. Before liquidating, make sure to check on your competitors’ listings to see if there’s anything you could be doing differently to recover.
- Defective Products
Every now and then, one of your products will turn out to be defective. The only way you’ll know about it, of course, is if you keep watch over your reviews. Customers will be sure to let you know when they’re not satisfied! While bad reviews will turn other potential customers off from buying your products, they do serve a purpose: they’ll let you know when your products are defective. Before liquidating, take a peek at your reviews to see if there’s anything wrong with the products themselves.
How to Liquidate
If you’re absolutely sure liquidation is the only option, make sure to coordinate your liquidation effort with your various teams. SellerMobile’s High Inventory/ Liquidation Report allows you to get regular updates of products that require liquidation. If you’re going to recoup losses effectively, you’ll need to make sure everyone