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FBA Liquidations – The Key to Improve Sell Through

When sellers avail of Fulfilled By Amazon services, there is also scope for the failure of selling. Sometimes, it happens that the seller has an extensive inventory of products in-store. However, the demand for these products is not optimal, and they don’t sell fast. For such products that sit in the warehouse for a long time, the seller needs a good, spacious warehouse to avail of long-term storage. However, not all warehouses provide the long-term storage option. On the other hand, long-term storage also comes with long-term storage fees.

One of the reasonable ways of handling the inventory issues is to sell your products at a lower price to sell off the products and address the storage issues quickly. This way, your FBA products won’t sit in the store for long, and your business will also keep moving.

Sometimes, you might even sell the products at a low-profit margin or a loss so that the sale rate increases. This will enhance your sell-through rate and give you a chance to reach out to more customers. Then, slowly, you can increase the profit margin. However, it would help if you always offered discounts on your products to improve the sell-through rate. Customers prefer products at discounts over other products.

If you want to ensure that your FBA products sell, combine the service with great advertising and marketing. You can also try updating your listing when on the portal. This will display your new products as they come so that the customers are more aware of them. The more you update your listings, the better sales you have. This way, you can also make sure that the products display the way you want.

However, if FBA is not working for you well, you can have your products removed from FBA prep. On the other hand, your products returned to you. There is also an option of disposing of the consequences if the products are beyond their expiry dates. Another option that should be a last resort for you is the FBA Liquidations program.

What are the FBA Liquidations Programs?

The FBA Liquidations programs of Amazon help sellers recover money from excess inventory that does not sell. You can also have payback on returned products. Moreover, you can avoid long-term storage fees and inventory disposal issues.

When you enroll in FBA liquidations Programs, you can leverage the program to liquidate the wholesale price inventory. This is a much more viable option than giving out an extra fee for managing your inventory. The opportunity to enroll in the FBA Liquidations Programs is open for all sellers on the Amazon platform.

Opting for a wholesale liquidator is better because these programs resell the inventory through other eCommerce platforms. This reselling process of the liquidators also goes through brick and mortar stores. This happens because liquidators cannot resell the products on Amazon directly. These products cannot also return to the seller. Instead, the wholesale liquidator takes over and resells the products for a profit on other platforms. This helps you earn a profit on the products you were unable to sell on Amazon.

What are the FBA items eligible for reselling?

There are specific criteria that the unsold FBA inventory has to fulfill for wholesale liquidation. The products that do not meet the requirements are not eligible for reselling. For example, damaged products that have been recalled do not qualify for reselling. Additionally, if the products or hazmat or hazardous, they do not get resold.

The items that are customer damaged are eligible for reselling. In addition to this, the damaged carrier products are also suitable for reselling. Another category of products that is eligible for reselling is distributor impaired.

On the other hand, the products that are warehouse damaged do not get liquidated by the liquidator. If the products are expired or defective, you cannot resell them either.

The wholesale liquidators also provide room for flexibility to complete orders with the inventory stock. There will be a gap between when you place a liquidation order and when the liquidator picks up the store. When you are in the reserved status in this gap period, you can still use the inventory to fulfill customer orders. Thus, if there is room for taking orders and making profits, you can still do it until the stock is liquidated.

However, when you have placed a liquidation order, you cannot cancel it. But, if you know you have been amassing many long-term unsold products, you should go for liquidation. Once you start liquidating the stock, you will stop the piling up of monthly long-term storage fees. In the long run, you save up on a lot of money and make better profits.

Liquidating allows you to recover part of the inventory fees while also avoiding Amazon fees. This creates a net recovery value for your inventory.

Conclusion

Liquidation of your FBA products is an excellent strategy because it helps you recover the inventory fees. It also enables you to avoid unnecessary losses. You can manage your inventory well with the help of wholesale liquidators. You can easily keep your stock in the flow and maintain the stock’s freshness. Liquidation is pretty popular today in Amazon sellers and is a crucial part of FBA inventory management. Reselling platforms also depend on the liquidation process.