Every year, sellers replenish large quantities in the peak season. Most of the results in the end of inventory are not accurate estimates of sales. Today we are going to present to you a few ideas about cleaning up your Amazon inventory to save you some headache.
How to avoid generating excessive inventories?
In the peak season, the most taboo is overestimating sales. It is recommended not to replenish the goods in large quantities for a few days (subjective opinion) even if it means sellers may be faced with short in stock problem.
An adequate estimation is to replenish the product by 2.5 times the sales volume before the peak season. It is calculated as to cope with several relative variables. If the sales volume is less than expected, the 80% that we sent may have just sold out the peak season. If the sales exceed expectations, we still have 20% of the goods ready to be sent to Amazon right away.
Methods to clear out the excess inventories
1.CPC advertising clearing method
When the inventory has been sold out and cannot be sold out on time, immediately increase the CPC advertising and select the historical advertising ACOS to increase the bidding in 25% of the words. The more the advertising budget the better. At the same time, set a certain range of price cuts to stimulate greater sales.
2. On-site promotion method
From the past operations experience, it is recommended to set the discount range a little larger. For unit price more than 20 dollars, set the discount in amount; for unit price 10 dollars or less, set the discount ratio to cater to buyers’ mindset of taking advantage of the sale.
3. Outside Channel
Here are a couple of outside channels that help with clearing deals, such as dealnews.com, slickdeals. One thing that you should be aware of this method is that you will be operating at a loss rather than a profit--which is different from the former two methods.
Last but not least, if you have tried everything but not yet resolved the problem, the last thing you could do is dumping. It is not recommended, but the good news is that starting from February 15th, 2019, Amazon has decreased the long-term storage fee for the inventory age no more than 365 days. It grants sellers more time to deal with excessive inventories before it goes to waste.
It is always to plan ahead before setting up the business. With accurate estimation and effective marketing schemes, sellers would not have bothered much with clearing out the inventories.