at some point or other. It may be painful because the costs are so high just to get rid of the old inventory, but if you are losing money selling on Amazon the best thing is to contact closeout brokers who buy excess inventory and sell dead stock. Selling closeouts and liquidating Amazon FBA is just a normal part of running a business. When you run into this issue, it can bring you to a standstill because it’s not always clear how it should be handled. For some, when they face the problem of overstock or excess inventory, it sends chills down their spines. Visions of being charged hefty long-term storage fees and having capital tied up in slow-moving product dance through their heads. You do not have to pay these long terms storage fees to Amazon because you can contact closeout liquidators and they move quickly.
Liquidating FBA inventory doesn’t have to be a negative experience, however. Amazon FBA can be an awesome business when it works well. No seller should let Amazon fees, shipping costs, plus the race to the bottom dampen the excitement of selling online. Let’s fact it, not everything sells the way we expect and there are times where you just have to liquidate inventory and cut your losses. Closeout brokers are accustomed to buying dead inventory from Amazon FBA sellers so it should be an easy liquidation process. A simple Google search using terms like closeouts or buy excess inventory will turn up all kinds of closeout liquidators and overstock buyers. If you ever come to that point when you must liquidate inventory and sell dead stock to stop the bleeding, know that it doesn’t always have to be a loss. You can remain profitable with the items that are still selling and just get rid of old inventory to a liquidation company. If you know what your options are it makes the closeout process much easier.
If your product isn’t selling on Amazon, that doesn’t mean it won’t sell on another platform! By moving your inventory over to a platform like eBay, Shopify, or Groupon, there’s a chance you could still walk away with a profit. There is no guarantee that this will work better than working with closeout brokers and closeout liquidators, but it is probably worth a try. It is always better to sell your closeouts at full price any way you can before dropping the price and selling to liquidators who buy excess inventory for a living. However, in order to sell your product elsewhere, you’ll have to create a removal order within Seller Central. This will officially move your stock from Amazon’s warehouse to its next destination. You’ll need to coordinate those logistics though, and it comes at an added cost.
If every other option on the table isn’t worth the effort, your best bet is to send your stock to its final destination: The Dumpster. This is even worse that liquidation wholesale for pennies on the dollar because you really don’t get anything for your closeouts and dead stock. But if you have tried to liquidate excess inventory to closeout buyers and overstock buyers with no luck, this may be your last alternative. This is especially useful if you sell on Amazon in a marketplace other than the US or the UK. And while you’ll have to fill out a disposal request (which is similar to a removal request), disposal fees per item are slightly lower than the removal fees. So, instead of returning your stock to yourself or a new seller, this is a request to
destroy your remaining inventory. Naturally, it would be better to sell dead stock before you get to this point but sometimes liquidation stock is too difficult to get rid of and you have to destroy the inventory. The key to reducing excess inventory is to deal with it before it becomes too big of a problem. But if you have to shut down your Amazon FBA business you can submit your request in Seller Central, through the ‘Inventory Management Options’ tab. Ultimately, if you’re still planning to use the same branding, you don’t want to hurt your brand, which is why this was included as a viable option. Destroying your stock means you remain in control of what happens to it, and no one can harm your brand’s reputation.
There is one other option which is to donate your dead stock. This feel-good alternative will, at the very least, benefit someone else, if not yourself. Excess inventory liquidators only buy dead stock if they think they can make a profit. Donations will go to a good cause and often people who could not otherwise afford to pay for things will be delighted to get what you are giving away. Besides, there are a variety of ways to go about donating stock, depending on your type of product. Donations of excess inventory and obsolete inventory can be made to hospitals, charities, children’s organizations etc. Get creative! Removal request fees come into play with this option too, so keep in mind that those will come up when you’re letting Amazon know where to send your dead stock.
Merchandise USA is an inventory liquidator helping companies when they shut down a 3PL warehouse or close Amazon FBA business. We buy and sell overstock inventory, closeouts, unwanted inventory and surplus merchandise. We work with closeout buyers and closeout brokers around the world.