Amazon Inventory Liquidation [5 Methods Explained]

Once you’ve determined that liquidation is the best course of action, it’s time to explore your options.

Here are five effective methods to liquidate your Amazon inventory:

Make the Most of the Amazon Liquidation Program

Amazon’s FBA Liquidation program is a convenient solution when you’re looking to offload excess inventory quickly.

Through this program, Amazon collects your unwanted products, bundles them, and offers them to wholesale liquidators at a discounted rate. Sellers can typically recover 5-10% of the product’s average selling price through this process.

To participate –

• You’ll need to create a removal order in your Amazon Seller Central platform, specifying the items and quantities you wish to liquidate.

   

• Amazon will then handle the logistics of getting your products to the liquidators, and you’ll receive the net recovery value (after fees) within 60-90 days.

Run Giveaway Contests

People love freebies, and giveaway contests can generate excitement around your products while clearing out excess inventory.

Consider running a social media giveaway where participants can win your products by tagging friends, sharing posts, or completing other engagement actions.

Not only does this help you move some excess stock, but it also provides you valuable exposure as a seller and potentially attracts new customers who may purchase from you in the future.

Offer Big Discounts

You know what they say – sometimes the simplest solutions are the most effective. And when it comes to clearing out slow-moving inventory, running big discount promotions can be an absolute game-changer.

Think about it: In today’s economy, consumers always look for on-sale items, especially when 92% of Americans are pulling back on spending.

So, offering steep discounts on excess stock gives consumers a compelling reason to choose your products over competitors.

Now, there are a couple of ways you can go about this:

• Target Existing Customers: Leverage your loyal customer base by sending exclusive loyalty coupons or running flash sales. This creates a sense of urgency and drives sales from your biggest fans.

   

• Leverage Amazon Lightning Deals: These time-sensitive deals, lasting 4-12 hours (determined by Amazon), get prime real estate on the Today’s Deals and Prime Day pages.

Setting up a Lightning Deal is easy and a great way to increase reach.

To be eligible, you’ll need a Professional Seller account and a minimum 3.5-star Seller rating.

It’s also wise to determine your break-even point beforehand. For example, if your net profit is $10 per unit and the Lightning Deal fee is $150, you’ll need to sell at least 15 units to cover that fee. Anything above that is pure profit.

Create Bundles/Kits

Bundling complementary products together can be a great way to sell excess inventory while offering customers added value.

For example, if you have excess baby clothes, you could create a “Diaper Changing Kit” that includes wipes, diaper rash cream, and diapers – all products that new parents would find useful.

Not only does this strategy help you move multiple items at once, but it also creates a more appealing package for which customers may be willing to pay a premium.

Sell to Competitors at a Wholesale Price

While it may seem counterintuitive at first, selling your excess inventory to competitors can actually be a viable option in certain situations.

Here’s why it could make sense:

• It lets you offload excess stock quickly, freeing up capital and storage space.

   

• Other businesses are constantly on the lookout for new product lines to expand their offerings, especially when they can acquire inventory at wholesale discounts.

For example, let’s say you’re an FBA seller of premium kitchenware and have excess stock of a particular line of pots and pans that didn’t perform as expected.

A competitor specializing in cookware bundles or starter kits may be interested in purchasing your overstock to incorporate into their own product offerings.

The benefits of this approach go beyond just clearing out excess inventory:

• It helps you build relationships with other businesses in your industry, opening doors for potential future collaborations, product line expansions, or even acquisitions.

   

• You get to negotiate wholesale pricing, which can be more lucrative than heavily discounting to end consumers.