Amazon FBA (Fulfillment By Amazon) is a shipping method that is very popular among many cross-border e-commerce sellers. Sellers only need to send the goods to Amazon’s warehouse, and Amazon will complete subsequent shipping and customer service. However, Amazon FBA also has some problems with abandoned goods. This article will introduce the Amazon FBA abandonment problem and its solutions.
1. What is Amazon FBA abandonment?
Amazon FBA abandonment refers to goods stored in Amazon FBA warehouses that are abandoned or destroyed by Amazon for various reasons. In the Amazon FBA warehouse, if a product has not been sold or returned for a long time, or cannot be processed, it may be classified as abandoned. These goods take up warehouse space and resources, causing unnecessary costs and losses to sellers.
2. Reasons for Amazon FBA abandonment.
There are many reasons why Amazon FBA abandons goods. Here are some common reasons:
1) Excess inventory: Sellers store too many goods in Amazon FBA warehouses, and sales Insufficient quantity leads to excess inventory.
2) Seasonal products: Some products are only sold during specific seasons or holidays. If the seller cannot sell these products during this period, they may be classified as abandoned products.
3) Product quality issues: Amazon may check the quality of the product. If it finds that there are quality problems with the product, it will be classified as abandoned.
4) Cancellation of order: If the buyer cancels the order after the order is completed, and the product cannot be sold, it may be classified as abandoned.
5) Rule changes: Amazon may change the sales rules of certain products. If the seller cannot adapt in time, the products may be classified as abandoned products.
3. The cost and impact of Amazon FBA abandonment.
Amazon FBA’s abandoned products will bring certain costs and impacts to sellers. Here are some common costs and impacts:
1) Storage fees: Abandoned merchandise still takes up warehouse space and resources, so storage fees still need to be paid.
2) Processing fees: Amazon may charge processing fees or destruction fees.
3) Loss of sales opportunities: Abandoned goods could have become sales opportunities for sellers, but they could not be realized due to various reasons, causing sellers to miss sales opportunities and affecting their profits and performance.
4) Impact on brand image: Abandoned goods may have a negative impact on the seller’s brand image and reduce consumers’ trust and loyalty to the seller.
5) Amazon Service Quality Score (SQS): Amazon FBA abandoned goods will also have a negative impact on the seller’s SQS, reducing the seller’s reputation and ranking on the Amazon platform.
4. How to solve Amazon FBA abandonment.
In order to avoid the cost and impact of Amazon FBA abandoned goods on sellers, sellers can take the following measures:
1) Optimize inventory management: Sellers can optimize inventory management strategies to minimize Update and adjust inventory quantities in a timely manner in case of excess inventory and shortages.
2) Optimize product strategy: Sellers can optimize product strategy, choose popular products or products that meet current market demand, and avoid choosing seasonal products or products with saturated markets.
3) Optimize price strategy: Sellers can optimize price strategy, formulate reasonable pricing and promotion strategies, and increase sales opportunities and sales volume.
4) Optimize marketing strategies: Sellers can optimize marketing strategies and increase product exposure and sales through advertising, social media and other channels.
5) Disposal of abandoned goods: Sellers can dispose of abandoned goods in a timely manner and try to avoid destruction or donation. They can choose preferential sales or clearance sales to recover part of the cost.
In short, Amazon FBA abandoned goods is a common problem, but sellers can avoid or reduce the occurrence of abandoned goods and reduce costs and losses by optimizing inventory management, product strategy, price strategy and marketing strategy. . At the same time, handling abandoned goods is also an issue that requires attention. Sellers need to deal with abandoned goods in a timely manner to avoid negative impacts on brand image and sales opportunities.