How does Amazon clear its backlog inventory?

Amazon's inventory backlog solution?

When planning the operation of new products, sometimes errors in product prediction can lead to a backlog of inventory. If not handled in a timely manner, this can cause significant losses.

Products stored in Amazon’s warehouse are subject to storage fees. If a product has slow sales, the account’s storage capacity will decrease and the platform will charge an overage fee. Therefore, it is important to cut losses in a timely manner for unsold products.

How does Amazon clear inventory for products that are backlogged in its warehouse?

1. Price reduction. Some products are sensitive to price, and reducing the price can have some effect on sales. However, if the product’s ranking and keywords are already low, other promotions need to be combined to be effective. Simply lowering the price will not have much impact.

2. Promotion. You can offer large discounts on coupons or exclusive discounts to stimulate consumer desire to buy and increase product sales.

3. Participate in platform activities. For example, Outlets deal is free and is a cost-effective clearance plan. If the product’s comprehensive ranking is still good and can still be found in searches, you can participate in LD or BD, which are paid flash sales.

4. Promotion outside the platform. Set up promotional discounts and promote products through websites other than Amazon to facilitate transactions. If a product catches the attention of a popular blogger, the effect of placing an order will be very strong, which is also an effective way to clear inventory.

5. Abandonment. If the product has a low value and a small quantity, it can be abandoned directly to reduce storage fees.

6. Offline collection of inventory. If you want to quickly clear inventory and recover losses, you can find local wholesalers offline. If there is a reliable service provider, you can also let the service provider collect inventory all at once.

For products with poor sales, inventory should be cut in a timely manner to optimize inventory and reduce losses, while also learning from the experience. When selecting products, market research should be conducted on the products. When stocking up, factors such as whether the product is seasonal, the average daily quantity, the product’s production cycle, shipping methods, and delivery time should be considered.

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