FBA Liquidations: Part 1 Understanding the Benefits

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Dominic_Amazon

FBA Liquidations: Part 1 Understanding the Benefits

Hello Sellers,

Wanted to talk about FBA Liquidations and share some insights. If you're grappling with excess inventory or a high volume of customer returns, this program could be a real game-changer for your business. Let me break down why:

  • Cost Recovery: Instead of paying for removal or disposal, which can eat into your profits, you can recoup some value. Amazon typically offers 5-10% of your product's value through their liquidation partners.
  • Fee Avoidance: One of the biggest advantages is saying goodbye to those monthly storage fees and aged-inventory surcharges on liquidated items. This can lead to substantial savings, especially for slower-moving inventory.
  • IPI Score Boost: By reducing excess inventory, you can positively impact your Inventory Performance Index (IPI) score. A higher IPI score can lead to increased storage limits and potentially lower fees, so this is a significant benefit.
  • Streamlined Inventory Management: Liquidation allows you to clear out slow-moving or returned items quickly, freeing up your capital for more profitable inventory investments.
  • Time-Saving: Instead of managing the removal and resale of items yourself, Amazon handles the entire process, saving you time and effort.

The mechanics are pretty straightforward too. You create a removal order, select 'Liquidations' as your method, and Amazon takes care of the rest. They'll arrange for a liquidator to purchase your items, and you'll receive the net recovery value (after Amazon's fees) within about 90 days.

Has anyone else noticed improvements in their IPI score or overall inventory health after using FBA Liquidations? I'd love to hear about your experiences!

Dominic

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