What do sellers fear most when working at Amazon? There is no fixed answer to this question. I believe that the headache of inventory backlog is inevitable. Inventory backlog means high monthly storage fees. The money is flowing away, and sellers dare not even calculate it carefully – it hurts.
As we all know, Amazon usually charges storage fees for the previous month’s inventory between the 7th and 15th of each month. The cost varies according to the size of the goods and the time of the year.
These days, sellers have to charge storage fees again. The seller said that the inventory inventory this month has increased by 4 times compared with last month. Remember that this time last year, the storage fee soared…
In fact, this cost can be avoided. How do Amazon sellers avoid long-term storage fees?
1. Remove inventory.
If you submit an order to remove it and submit the order before the inventory count date, these inventories will not incur long-term storage fees. And even if they are not removed in large quantities before the inventory count date, there will be no impact.
Another point to note is that inventory that is in a sellable state can be sold before the sale is completed. Unless Amazon returns the goods to you or refuses to process them, the seller will not be charged a removal order fee.
Second, automatic inventory deletion settings are used to pay long-term warehouse fees.
Sellers can automatically transfer inventory that has paid long-term warehouse fees before the 15th of each month, so that such inventory does not need to pay long-term storage fees. To perform automatic deletion, visit the “Settings” menu on the seller platform and click “Amazon Logistics”.
Amazon’s long-term storage fees are high, so sellers sometimes have to make concessions.
Third, inventory disposal.
That is what we often call destruction. For Amazon, $0.15 per transaction, there is no need to charge long-term storage fees for completely destroying the product. However, this method should depend on the value of the product. If the profit margin of this product is small and the sales potential is also small, then there is reason to ask Amazon to destroy this product. If it is a high-value product, the seller will suffer a double loss if it is destroyed, so it should be carefully considered.
Fourth, sell inventory.
Sellers can consider selling inventory at a discount. For example, use big promotions to promote these products. If the product has been stored for a long time, if the value of the goods is not large, please calculate, consider discount activities, or even give it away for free.
Five, FBA liquidation function.
Amazon FBA liquidation is a new method that can recover value from qualified and satisfying inventory, and avoid paying storage fees for a longer period of time, avoiding storing them in landfills or being added by Amazon to handle inventory returned to sellers.
The liquidation process only creates a settlement order for customers who receive invitations. In the case of a price close to the product listed by the seller, Amazon Logistics Settlement Company will not take back anything, but can be used as a treatment for products that cannot be sold in the first place and recover part of their value.
Nowadays, there are a large number of Chinese sellers on Amazon, and the homogeneity of goods is serious, which also leads to a serious backlog of sellers’ inventory. To do a good job of inventory planning, you can’t do it like the previous unsalable goods, but make a good forecast. By predicting product sales, we can control inventory quantities and achieve safe inventory, which can not only quickly return goods but also effectively support the peak sales season.