Hi Sellers,
This is a follow up to Part 1: FBA Liquidations: Part 1 Understanding the Benefits
Now that we understand the benefits, let's dive into strategies to get the most out of FBA Liquidation.
Timing is Everything: Don't wait until your inventory is too old or has been sitting for extended periods. Consider liquidating items as they approach the aged inventory threshold. This proactive approach can help you avoid long-term storage fees and keep your inventory fresh.
Selective Liquidation: Use your sales data and Amazon's analytics tools to identify slow-moving items that might be better off liquidated. Look for items with:
- Low sell-through rates
- Declining sales ranks
- High storage costs relative to their selling price
- Seasonal items outside of their peak selling period
Combine with Other Amazon Tools: Leverage Amazon's Inventory Age and Manage Excess Inventory pages to make informed decisions. These tools can help you identify which items are prime candidates for liquidation.
Consider Your Costs: When deciding whether to liquidate, factor in all costs including initial product cost, FBA fees, storage fees, and potential long-term storage fees. Sometimes, recovering even a small percentage through liquidation is better than continuing to incur fees.
Use Automated Liquidations: Set up automated liquidations for unfulfillable inventory to streamline the process. This can be particularly useful for managing customer returns efficiently.
Balance Liquidations with Other Strategies: Don't rely solely on liquidations. Combine it with other strategies like repricing, bundling, or running promotions to move inventory before resorting to liquidation.
Seasonal Considerations: If you deal with seasonal items, consider liquidating them shortly after their peak season ends, rather than storing them for another year.
Monitor Your Metrics: Keep a close eye on your IPI score and storage utilization. Use liquidations strategically to keep these metrics healthy.
Please let me know if you have any questions!
Best,
Dominic
