Source

FBA aged inventory surcharge (previously known as long-term storage fees)

On the 15th of every month, Amazon performs a stock check. During this process, they keep track of any items in their fulfillment centers for 181 days or more. Depending on how long the goods have been stored, the seller will have to pay an aged inventory fee. The fee, similar to the monthly storage fee, is taken from either your Amazon seller account balance or the credit card linked to your seller account on the same day each month.

The FBA aged inventory surcharge previously known as the long-term storage fee is not a substitute for the regular monthly storage fee. Instead, it is in addition to the regular monthly storage fee.

What Should You Do With the Aged Inventory?

You must manage excess inventory effectively to avoid paying the long-term storage fee.

You can opt for Amazon FBA Inventory Management services to delegate this task.

Alternatively, you can sign up for Amazon’s automatic aged inventory removal, which would eliminate the excess inventory using your preferred removal mode from the following three options:

You can request that Amazon destroy, liquidate, or deliver it back to you.

Dispose off the Inventory

If you want Amazon to dispose of your aged inventory, then you would need to file a removal order and choose the “Dispose” option. It is preferred for inventory that is expired and no longer usable.

Getting it Back from Amazon

Another option is to select “ship-to-address” while creating your removal order. This option is more suitable if you wish to sell your inventory elsewhere or hold it for another season.

Liquidate Inventory

If you want to sell off your excess inventory quickly, you can choose “Liquidate.” This means Amazon will sell the items on your behalf, typically at a discounted price, and you will receive a portion of the sales. This is a good option if you want to free up space and recoup some of the inventory costs.

How to Liquidate Amazon FBA Inventory?

Inventory liquidation means selling off your excess or unwanted inventory at a low price to free up your storage and improve cash flow.

If you are an FBA seller, clearing excess inventory eliminates unnecessary and excessive storage fees charged by Amazon. This also relieves the stress and anxiety associated with holding unsold stock that incurs extra costs.

However, It’s crucial to consider these points before liquidating Amazon FBA inventory:

Analyze Seasonality: If you’re selling a seasonal product you have to take into account the seasonality before liquidating. For example, you won’t be able to sell your winter clothes inventory during summer. So you have to decide whether you need to liquidate your inventory or recall your inventory until the next season.

Assess Account Health: Your drop in sales can be due to inefficient customer service resulting in negative reviews. So before liquidating your inventory, you can try to improve your customer service.

Optimize Product Listings: One of the reasons for low sales is unoptimized listings. Ensure your product listings include the right keywords and appealing product descriptions.

Review Pricing Strategy: If your prices are not competitive, shoppers won’t buy your products. So before deciding to liquidate, you should evaluate and adjust your pricing to remain competitive and attractive to buyers.

Also Read: Bulk Updating Amazon Inventory Simplified: A Step-by-Step Tutorial

Ways to Liquidate Amazon FBA Inventory

If you have finally decided to liquidate your inventory, there are several ways you can do it:

FBA Liquidations: This is a liquidation program offered by Amazon to FBA sellers. Under this program, Amazon links sellers with wholesale companies to buy the excess inventory. However, this is an invite-only program available to US sellers and non-US sellers running their Amazon business in the US marketplace.

Run a Giveaway: Before liquidating, host a giveaway to attract attention to your products. This can help sell excess stock, boost your brand, and even promote new inventory.

Sell on Deal Sites: Try selling your products on platforms like eBay, Shopify, or Walmart. It could still bring in profits, even if Amazon didn’t work out. Remember, transferring inventory from Amazon will incur a fee.

Social Media Marketplaces: Use platforms like Facebook Marketplace or Instagram Shopping to sell directly to customers.

Sell to Competitors: If your products are high quality and relevant, negotiate with competitors who might buy your stock. Aim to sell close to the cost price to minimize losses.

Donate to Charity: If selling isn’t viable, donating your excess inventory is a great way to avoid disposal costs and help those in need. Amazon’s FBA Donation Program is an option but may involve some fees.

Final Thoughts

Effective Amazon FBA Inventory Management is essential for keeping your Amazon business profitable. It not only helps you avoid excess storage fees, but it also helps you make better decisions about which products to sell and stock. FBA automates most business tasks, but it doesn’t get rid of items from your stock until they sell. With so many things to keep track of when you become an Amazon seller, you may need help. Are you looking for the expertise to get started with Amazon FBA? Do you need assistance with sourcing and listing products or need help making a decision about aged inventory? SPCTEK is your expert and offers free consultation calls!

[/vc_column_text][/vc_column][/vc_row]

FAQ’s

How can I identify aged inventory on Amazon?

• Inventory Management Reports: Use Amazon’s Inventory Management reports to track inventory age and identify products with low sales velocity.
• FBA Inventory Age tool: Third-party tools like Inventory Age by Helium 10 can help you visualize and analyze your aged inventory in different ways.

How often should I review my aged inventory?

It’s crucial to regularly review your aged inventory, ideally weekly or bi-weekly. This allows you to identify potential issues early and take timely action to mitigate them.

What are the penalties for exceeding inventory storage limits?

If you exceed your inventory storage limits, Amazon will charge you a storage fee for each excess unit.

What is the difference between Amazon FBA and FBM?

• FBA (Fulfillment by Amazon): Amazon stores your products in their fulfillment centers and takes care of picking, packing, shipping, and customer service.
• FBM (Fulfillment by Merchant): You store your own products and handle all aspects of fulfilling orders yourself

How long does it take to start making money with Amazon FBA?

It can take several months to start making a profit with Amazon FBA, as it takes time to build up inventory, sales, and positive reviews. However, with hard work and dedication, you can build a successful Amazon FBA business.

Are there any Amazon aged accounts for sale?

Yes, there are aged Amazon accounts for sale on the market, but Amazon usually doesn’t allow the transfer of an account to anyone else. Amazon states that ‘seller accounts generally are not transferable’. However, you can consult with a legal expert and Amazon Seller Support to understand the specific requirements and procedures involved.

Now you are ready to send your products to Amazon’s Fulfillment Center. But first, you have to put an Amazon-generated barcode on your product, which helps Amazon keep track of your product and prevent mixing it with other sellers’ products.

Congratulations Your Products are Live!

Once your products are received at an Amazon fulfillment center, your products go live. Customers place orders, and Amazon deals with the rest. Even if there is a problem and the buyer wants a return or a refund, Amazon handles that too.

Also Read: 10 Strategies for Amazon Inventory Management: Updated Guide

What does Amazon do with the aged inventory?

As part of Amazon FBA Inventory Management, Amazon charges you the following two types of storage fees:

• Monthly Storage Fee
• FBA aged inventory surcharge (previously known as long-term storage fees)

Monthly Storage Fee

The monthly storage fee depends on your product’s size and quantity. The bigger the size, the higher the per-cubic-foot rate. Similarly, the busier the season, the higher the storage fee. It is the main Amazon FBA Inventory fee you pay.

These are the current monthly storage fees for storing products in Amazon’s fulfillment centers, as mentioned in the chart.

                                                 Source

FBA aged inventory surcharge (previously known as long-term storage fees)

On the 15th of every month, Amazon performs a stock check. During this process, they keep track of any items in their fulfillment centers for 181 days or more. Depending on how long the goods have been stored, the seller will have to pay an aged inventory fee. The fee, similar to the monthly storage fee, is taken from either your Amazon seller account balance or the credit card linked to your seller account on the same day each month.

The FBA aged inventory surcharge previously known as the long-term storage fee is not a substitute for the regular monthly storage fee. Instead, it is in addition to the regular monthly storage fee.

What Should You Do With the Aged Inventory?

You must manage excess inventory effectively to avoid paying the long-term storage fee.

You can opt for Amazon FBA Inventory Management services to delegate this task.

Alternatively, you can sign up for Amazon’s automatic aged inventory removal, which would eliminate the excess inventory using your preferred removal mode from the following three options:

You can request that Amazon destroy, liquidate, or deliver it back to you.

Dispose off the Inventory

If you want Amazon to dispose of your aged inventory, then you would need to file a removal order and choose the “Dispose” option. It is preferred for inventory that is expired and no longer usable.

Getting it Back from Amazon

Another option is to select “ship-to-address” while creating your removal order. This option is more suitable if you wish to sell your inventory elsewhere or hold it for another season.

Liquidate Inventory

If you want to sell off your excess inventory quickly, you can choose “Liquidate.” This means Amazon will sell the items on your behalf, typically at a discounted price, and you will receive a portion of the sales. This is a good option if you want to free up space and recoup some of the inventory costs.

How to Liquidate Amazon FBA Inventory?

Inventory liquidation means selling off your excess or unwanted inventory at a low price to free up your storage and improve cash flow.

If you are an FBA seller, clearing excess inventory eliminates unnecessary and excessive storage fees charged by Amazon. This also relieves the stress and anxiety associated with holding unsold stock that incurs extra costs.

However, It’s crucial to consider these points before liquidating Amazon FBA inventory:

Analyze Seasonality: If you’re selling a seasonal product you have to take into account the seasonality before liquidating. For example, you won’t be able to sell your winter clothes inventory during summer. So you have to decide whether you need to liquidate your inventory or recall your inventory until the next season.

Assess Account Health: Your drop in sales can be due to inefficient customer service resulting in negative reviews. So before liquidating your inventory, you can try to improve your customer service.

Optimize Product Listings: One of the reasons for low sales is unoptimized listings. Ensure your product listings include the right keywords and appealing product descriptions.

Review Pricing Strategy: If your prices are not competitive, shoppers won’t buy your products. So before deciding to liquidate, you should evaluate and adjust your pricing to remain competitive and attractive to buyers.

Also Read: Bulk Updating Amazon Inventory Simplified: A Step-by-Step Tutorial

Ways to Liquidate Amazon FBA Inventory

If you have finally decided to liquidate your inventory, there are several ways you can do it:

FBA Liquidations: This is a liquidation program offered by Amazon to FBA sellers. Under this program, Amazon links sellers with wholesale companies to buy the excess inventory. However, this is an invite-only program available to US sellers and non-US sellers running their Amazon business in the US marketplace.

Run a Giveaway: Before liquidating, host a giveaway to attract attention to your products. This can help sell excess stock, boost your brand, and even promote new inventory.

Sell on Deal Sites: Try selling your products on platforms like eBay, Shopify, or Walmart. It could still bring in profits, even if Amazon didn’t work out. Remember, transferring inventory from Amazon will incur a fee.

Social Media Marketplaces: Use platforms like Facebook Marketplace or Instagram Shopping to sell directly to customers.

Sell to Competitors: If your products are high quality and relevant, negotiate with competitors who might buy your stock. Aim to sell close to the cost price to minimize losses.

Donate to Charity: If selling isn’t viable, donating your excess inventory is a great way to avoid disposal costs and help those in need. Amazon’s FBA Donation Program is an option but may involve some fees.

Final Thoughts

Effective Amazon FBA Inventory Management is essential for keeping your Amazon business profitable. It not only helps you avoid excess storage fees, but it also helps you make better decisions about which products to sell and stock. FBA automates most business tasks, but it doesn’t get rid of items from your stock until they sell. With so many things to keep track of when you become an Amazon seller, you may need help. Are you looking for the expertise to get started with Amazon FBA? Do you need assistance with sourcing and listing products or need help making a decision about aged inventory? SPCTEK is your expert and offers free consultation calls!

[/vc_column_text][/vc_column][/vc_row]

FAQ’s

How can I identify aged inventory on Amazon?

• Inventory Management Reports: Use Amazon’s Inventory Management reports to track inventory age and identify products with low sales velocity.
• FBA Inventory Age tool: Third-party tools like Inventory Age by Helium 10 can help you visualize and analyze your aged inventory in different ways.

How often should I review my aged inventory?

It’s crucial to regularly review your aged inventory, ideally weekly or bi-weekly. This allows you to identify potential issues early and take timely action to mitigate them.

What are the penalties for exceeding inventory storage limits?

If you exceed your inventory storage limits, Amazon will charge you a storage fee for each excess unit.

What is the difference between Amazon FBA and FBM?

• FBA (Fulfillment by Amazon): Amazon stores your products in their fulfillment centers and takes care of picking, packing, shipping, and customer service.
• FBM (Fulfillment by Merchant): You store your own products and handle all aspects of fulfilling orders yourself

How long does it take to start making money with Amazon FBA?

It can take several months to start making a profit with Amazon FBA, as it takes time to build up inventory, sales, and positive reviews. However, with hard work and dedication, you can build a successful Amazon FBA business.

Are there any Amazon aged accounts for sale?

Yes, there are aged Amazon accounts for sale on the market, but Amazon usually doesn’t allow the transfer of an account to anyone else. Amazon states that ‘seller accounts generally are not transferable’. However, you can consult with a legal expert and Amazon Seller Support to understand the specific requirements and procedures involved.

Now you are ready to send your products to Amazon’s Fulfillment Center. But first, you have to put an Amazon-generated barcode on your product, which helps Amazon keep track of your product and prevent mixing it with other sellers’ products.

Congratulations Your Products are Live!

Once your products are received at an Amazon fulfillment center, your products go live. Customers place orders, and Amazon deals with the rest. Even if there is a problem and the buyer wants a return or a refund, Amazon handles that too.

Also Read: 10 Strategies for Amazon Inventory Management: Updated Guide

What does Amazon do with the aged inventory?

As part of Amazon FBA Inventory Management, Amazon charges you the following two types of storage fees:

• Monthly Storage Fee
• FBA aged inventory surcharge (previously known as long-term storage fees)

Monthly Storage Fee

The monthly storage fee depends on your product’s size and quantity. The bigger the size, the higher the per-cubic-foot rate. Similarly, the busier the season, the higher the storage fee. It is the main Amazon FBA Inventory fee you pay.

These are the current monthly storage fees for storing products in Amazon’s fulfillment centers, as mentioned in the chart.

                                                 Source

FBA aged inventory surcharge (previously known as long-term storage fees)

On the 15th of every month, Amazon performs a stock check. During this process, they keep track of any items in their fulfillment centers for 181 days or more. Depending on how long the goods have been stored, the seller will have to pay an aged inventory fee. The fee, similar to the monthly storage fee, is taken from either your Amazon seller account balance or the credit card linked to your seller account on the same day each month.

The FBA aged inventory surcharge previously known as the long-term storage fee is not a substitute for the regular monthly storage fee. Instead, it is in addition to the regular monthly storage fee.

What Should You Do With the Aged Inventory?

You must manage excess inventory effectively to avoid paying the long-term storage fee.

You can opt for Amazon FBA Inventory Management services to delegate this task.

Alternatively, you can sign up for Amazon’s automatic aged inventory removal, which would eliminate the excess inventory using your preferred removal mode from the following three options:

You can request that Amazon destroy, liquidate, or deliver it back to you.

Dispose off the Inventory

If you want Amazon to dispose of your aged inventory, then you would need to file a removal order and choose the “Dispose” option. It is preferred for inventory that is expired and no longer usable.

Getting it Back from Amazon

Another option is to select “ship-to-address” while creating your removal order. This option is more suitable if you wish to sell your inventory elsewhere or hold it for another season.

Liquidate Inventory

If you want to sell off your excess inventory quickly, you can choose “Liquidate.” This means Amazon will sell the items on your behalf, typically at a discounted price, and you will receive a portion of the sales. This is a good option if you want to free up space and recoup some of the inventory costs.

How to Liquidate Amazon FBA Inventory?

Inventory liquidation means selling off your excess or unwanted inventory at a low price to free up your storage and improve cash flow.

If you are an FBA seller, clearing excess inventory eliminates unnecessary and excessive storage fees charged by Amazon. This also relieves the stress and anxiety associated with holding unsold stock that incurs extra costs.

However, It’s crucial to consider these points before liquidating Amazon FBA inventory:

Analyze Seasonality: If you’re selling a seasonal product you have to take into account the seasonality before liquidating. For example, you won’t be able to sell your winter clothes inventory during summer. So you have to decide whether you need to liquidate your inventory or recall your inventory until the next season.

Assess Account Health: Your drop in sales can be due to inefficient customer service resulting in negative reviews. So before liquidating your inventory, you can try to improve your customer service.

Optimize Product Listings: One of the reasons for low sales is unoptimized listings. Ensure your product listings include the right keywords and appealing product descriptions.

Review Pricing Strategy: If your prices are not competitive, shoppers won’t buy your products. So before deciding to liquidate, you should evaluate and adjust your pricing to remain competitive and attractive to buyers.

Also Read: Bulk Updating Amazon Inventory Simplified: A Step-by-Step Tutorial

Ways to Liquidate Amazon FBA Inventory

If you have finally decided to liquidate your inventory, there are several ways you can do it:

FBA Liquidations: This is a liquidation program offered by Amazon to FBA sellers. Under this program, Amazon links sellers with wholesale companies to buy the excess inventory. However, this is an invite-only program available to US sellers and non-US sellers running their Amazon business in the US marketplace.

Run a Giveaway: Before liquidating, host a giveaway to attract attention to your products. This can help sell excess stock, boost your brand, and even promote new inventory.

Sell on Deal Sites: Try selling your products on platforms like eBay, Shopify, or Walmart. It could still bring in profits, even if Amazon didn’t work out. Remember, transferring inventory from Amazon will incur a fee.

Social Media Marketplaces: Use platforms like Facebook Marketplace or Instagram Shopping to sell directly to customers.

Sell to Competitors: If your products are high quality and relevant, negotiate with competitors who might buy your stock. Aim to sell close to the cost price to minimize losses.

Donate to Charity: If selling isn’t viable, donating your excess inventory is a great way to avoid disposal costs and help those in need. Amazon’s FBA Donation Program is an option but may involve some fees.

Final Thoughts

Effective Amazon FBA Inventory Management is essential for keeping your Amazon business profitable. It not only helps you avoid excess storage fees, but it also helps you make better decisions about which products to sell and stock. FBA automates most business tasks, but it doesn’t get rid of items from your stock until they sell. With so many things to keep track of when you become an Amazon seller, you may need help. Are you looking for the expertise to get started with Amazon FBA? Do you need assistance with sourcing and listing products or need help making a decision about aged inventory? SPCTEK is your expert and offers free consultation calls!

[/vc_column_text][/vc_column][/vc_row]

FAQ’s

How can I identify aged inventory on Amazon?

• Inventory Management Reports: Use Amazon’s Inventory Management reports to track inventory age and identify products with low sales velocity.
• FBA Inventory Age tool: Third-party tools like Inventory Age by Helium 10 can help you visualize and analyze your aged inventory in different ways.

How often should I review my aged inventory?

It’s crucial to regularly review your aged inventory, ideally weekly or bi-weekly. This allows you to identify potential issues early and take timely action to mitigate them.

What are the penalties for exceeding inventory storage limits?

If you exceed your inventory storage limits, Amazon will charge you a storage fee for each excess unit.

What is the difference between Amazon FBA and FBM?

• FBA (Fulfillment by Amazon): Amazon stores your products in their fulfillment centers and takes care of picking, packing, shipping, and customer service.
• FBM (Fulfillment by Merchant): You store your own products and handle all aspects of fulfilling orders yourself

How long does it take to start making money with Amazon FBA?

It can take several months to start making a profit with Amazon FBA, as it takes time to build up inventory, sales, and positive reviews. However, with hard work and dedication, you can build a successful Amazon FBA business.

Are there any Amazon aged accounts for sale?

Yes, there are aged Amazon accounts for sale on the market, but Amazon usually doesn’t allow the transfer of an account to anyone else. Amazon states that ‘seller accounts generally are not transferable’. However, you can consult with a legal expert and Amazon Seller Support to understand the specific requirements and procedures involved.

Ship Your Products to Amazon’s Fulfillment Center

Now you are ready to send your products to Amazon’s Fulfillment Center. But first, you have to put an Amazon-generated barcode on your product, which helps Amazon keep track of your product and prevent mixing it with other sellers’ products.

Congratulations Your Products are Live!

Once your products are received at an Amazon fulfillment center, your products go live. Customers place orders, and Amazon deals with the rest. Even if there is a problem and the buyer wants a return or a refund, Amazon handles that too.

Also Read: 10 Strategies for Amazon Inventory Management: Updated Guide

What does Amazon do with the aged inventory?

As part of Amazon FBA Inventory Management, Amazon charges you the following two types of storage fees:

• Monthly Storage Fee
• FBA aged inventory surcharge (previously known as long-term storage fees)

Monthly Storage Fee

The monthly storage fee depends on your product’s size and quantity. The bigger the size, the higher the per-cubic-foot rate. Similarly, the busier the season, the higher the storage fee. It is the main Amazon FBA Inventory fee you pay.

These are the current monthly storage fees for storing products in Amazon’s fulfillment centers, as mentioned in the chart.

                                                 Source

FBA aged inventory surcharge (previously known as long-term storage fees)

On the 15th of every month, Amazon performs a stock check. During this process, they keep track of any items in their fulfillment centers for 181 days or more. Depending on how long the goods have been stored, the seller will have to pay an aged inventory fee. The fee, similar to the monthly storage fee, is taken from either your Amazon seller account balance or the credit card linked to your seller account on the same day each month.

The FBA aged inventory surcharge previously known as the long-term storage fee is not a substitute for the regular monthly storage fee. Instead, it is in addition to the regular monthly storage fee.

What Should You Do With the Aged Inventory?

You must manage excess inventory effectively to avoid paying the long-term storage fee.

You can opt for Amazon FBA Inventory Management services to delegate this task.

Alternatively, you can sign up for Amazon’s automatic aged inventory removal, which would eliminate the excess inventory using your preferred removal mode from the following three options:

You can request that Amazon destroy, liquidate, or deliver it back to you.

Dispose off the Inventory

If you want Amazon to dispose of your aged inventory, then you would need to file a removal order and choose the “Dispose” option. It is preferred for inventory that is expired and no longer usable.

Getting it Back from Amazon

Another option is to select “ship-to-address” while creating your removal order. This option is more suitable if you wish to sell your inventory elsewhere or hold it for another season.

Liquidate Inventory

If you want to sell off your excess inventory quickly, you can choose “Liquidate.” This means Amazon will sell the items on your behalf, typically at a discounted price, and you will receive a portion of the sales. This is a good option if you want to free up space and recoup some of the inventory costs.

How to Liquidate Amazon FBA Inventory?

Inventory liquidation means selling off your excess or unwanted inventory at a low price to free up your storage and improve cash flow.

If you are an FBA seller, clearing excess inventory eliminates unnecessary and excessive storage fees charged by Amazon. This also relieves the stress and anxiety associated with holding unsold stock that incurs extra costs.

However, It’s crucial to consider these points before liquidating Amazon FBA inventory:

Analyze Seasonality: If you’re selling a seasonal product you have to take into account the seasonality before liquidating. For example, you won’t be able to sell your winter clothes inventory during summer. So you have to decide whether you need to liquidate your inventory or recall your inventory until the next season.

Assess Account Health: Your drop in sales can be due to inefficient customer service resulting in negative reviews. So before liquidating your inventory, you can try to improve your customer service.

Optimize Product Listings: One of the reasons for low sales is unoptimized listings. Ensure your product listings include the right keywords and appealing product descriptions.

Review Pricing Strategy: If your prices are not competitive, shoppers won’t buy your products. So before deciding to liquidate, you should evaluate and adjust your pricing to remain competitive and attractive to buyers.

Also Read: Bulk Updating Amazon Inventory Simplified: A Step-by-Step Tutorial

Ways to Liquidate Amazon FBA Inventory

If you have finally decided to liquidate your inventory, there are several ways you can do it:

FBA Liquidations: This is a liquidation program offered by Amazon to FBA sellers. Under this program, Amazon links sellers with wholesale companies to buy the excess inventory. However, this is an invite-only program available to US sellers and non-US sellers running their Amazon business in the US marketplace.

Run a Giveaway: Before liquidating, host a giveaway to attract attention to your products. This can help sell excess stock, boost your brand, and even promote new inventory.

Sell on Deal Sites: Try selling your products on platforms like eBay, Shopify, or Walmart. It could still bring in profits, even if Amazon didn’t work out. Remember, transferring inventory from Amazon will incur a fee.

Social Media Marketplaces: Use platforms like Facebook Marketplace or Instagram Shopping to sell directly to customers.

Sell to Competitors: If your products are high quality and relevant, negotiate with competitors who might buy your stock. Aim to sell close to the cost price to minimize losses.

Donate to Charity: If selling isn’t viable, donating your excess inventory is a great way to avoid disposal costs and help those in need. Amazon’s FBA Donation Program is an option but may involve some fees.

Final Thoughts

Effective Amazon FBA Inventory Management is essential for keeping your Amazon business profitable. It not only helps you avoid excess storage fees, but it also helps you make better decisions about which products to sell and stock. FBA automates most business tasks, but it doesn’t get rid of items from your stock until they sell. With so many things to keep track of when you become an Amazon seller, you may need help. Are you looking for the expertise to get started with Amazon FBA? Do you need assistance with sourcing and listing products or need help making a decision about aged inventory? SPCTEK is your expert and offers free consultation calls!

[/vc_column_text][/vc_column][/vc_row]

FAQ’s

How can I identify aged inventory on Amazon?

• Inventory Management Reports: Use Amazon’s Inventory Management reports to track inventory age and identify products with low sales velocity.
• FBA Inventory Age tool: Third-party tools like Inventory Age by Helium 10 can help you visualize and analyze your aged inventory in different ways.

How often should I review my aged inventory?

It’s crucial to regularly review your aged inventory, ideally weekly or bi-weekly. This allows you to identify potential issues early and take timely action to mitigate them.

What are the penalties for exceeding inventory storage limits?

If you exceed your inventory storage limits, Amazon will charge you a storage fee for each excess unit.

What is the difference between Amazon FBA and FBM?

• FBA (Fulfillment by Amazon): Amazon stores your products in their fulfillment centers and takes care of picking, packing, shipping, and customer service.
• FBM (Fulfillment by Merchant): You store your own products and handle all aspects of fulfilling orders yourself

How long does it take to start making money with Amazon FBA?

It can take several months to start making a profit with Amazon FBA, as it takes time to build up inventory, sales, and positive reviews. However, with hard work and dedication, you can build a successful Amazon FBA business.

Are there any Amazon aged accounts for sale?

Yes, there are aged Amazon accounts for sale on the market, but Amazon usually doesn’t allow the transfer of an account to anyone else. Amazon states that ‘seller accounts generally are not transferable’. However, you can consult with a legal expert and Amazon Seller Support to understand the specific requirements and procedures involved.

 

Don’t worry about making the wrong choice; whichever plan you select, you can change plans at any time.

Find Products

There are tools available that help you assess the market and decide what products you can sell to make a profit.

You can either sell your own products or buy retail items at wholesale prices and sell them at retail prices on Amazon.

List the Products on Amazon

Once you have the product you want to sell, it is time to list it on Amazon so that customers can find it. When finalizing the listing, choose the Fulfilled by Amazon (FBA) option for your offer.

Ship Your Products to Amazon’s Fulfillment Center

Now you are ready to send your products to Amazon’s Fulfillment Center. But first, you have to put an Amazon-generated barcode on your product, which helps Amazon keep track of your product and prevent mixing it with other sellers’ products.

Congratulations Your Products are Live!

Once your products are received at an Amazon fulfillment center, your products go live. Customers place orders, and Amazon deals with the rest. Even if there is a problem and the buyer wants a return or a refund, Amazon handles that too.

Also Read: 10 Strategies for Amazon Inventory Management: Updated Guide

What does Amazon do with the aged inventory?

As part of Amazon FBA Inventory Management, Amazon charges you the following two types of storage fees:

• Monthly Storage Fee
• FBA aged inventory surcharge (previously known as long-term storage fees)

Monthly Storage Fee

The monthly storage fee depends on your product’s size and quantity. The bigger the size, the higher the per-cubic-foot rate. Similarly, the busier the season, the higher the storage fee. It is the main Amazon FBA Inventory fee you pay.

These are the current monthly storage fees for storing products in Amazon’s fulfillment centers, as mentioned in the chart.

                                                 Source

FBA aged inventory surcharge (previously known as long-term storage fees)

On the 15th of every month, Amazon performs a stock check. During this process, they keep track of any items in their fulfillment centers for 181 days or more. Depending on how long the goods have been stored, the seller will have to pay an aged inventory fee. The fee, similar to the monthly storage fee, is taken from either your Amazon seller account balance or the credit card linked to your seller account on the same day each month.

The FBA aged inventory surcharge previously known as the long-term storage fee is not a substitute for the regular monthly storage fee. Instead, it is in addition to the regular monthly storage fee.

What Should You Do With the Aged Inventory?

You must manage excess inventory effectively to avoid paying the long-term storage fee.

You can opt for Amazon FBA Inventory Management services to delegate this task.

Alternatively, you can sign up for Amazon’s automatic aged inventory removal, which would eliminate the excess inventory using your preferred removal mode from the following three options:

You can request that Amazon destroy, liquidate, or deliver it back to you.

Dispose off the Inventory

If you want Amazon to dispose of your aged inventory, then you would need to file a removal order and choose the “Dispose” option. It is preferred for inventory that is expired and no longer usable.

Getting it Back from Amazon

Another option is to select “ship-to-address” while creating your removal order. This option is more suitable if you wish to sell your inventory elsewhere or hold it for another season.

Liquidate Inventory

If you want to sell off your excess inventory quickly, you can choose “Liquidate.” This means Amazon will sell the items on your behalf, typically at a discounted price, and you will receive a portion of the sales. This is a good option if you want to free up space and recoup some of the inventory costs.

How to Liquidate Amazon FBA Inventory?

Inventory liquidation means selling off your excess or unwanted inventory at a low price to free up your storage and improve cash flow.

If you are an FBA seller, clearing excess inventory eliminates unnecessary and excessive storage fees charged by Amazon. This also relieves the stress and anxiety associated with holding unsold stock that incurs extra costs.

However, It’s crucial to consider these points before liquidating Amazon FBA inventory:

Analyze Seasonality: If you’re selling a seasonal product you have to take into account the seasonality before liquidating. For example, you won’t be able to sell your winter clothes inventory during summer. So you have to decide whether you need to liquidate your inventory or recall your inventory until the next season.

Assess Account Health: Your drop in sales can be due to inefficient customer service resulting in negative reviews. So before liquidating your inventory, you can try to improve your customer service.

Optimize Product Listings: One of the reasons for low sales is unoptimized listings. Ensure your product listings include the right keywords and appealing product descriptions.

Review Pricing Strategy: If your prices are not competitive, shoppers won’t buy your products. So before deciding to liquidate, you should evaluate and adjust your pricing to remain competitive and attractive to buyers.

Also Read: Bulk Updating Amazon Inventory Simplified: A Step-by-Step Tutorial

Ways to Liquidate Amazon FBA Inventory

If you have finally decided to liquidate your inventory, there are several ways you can do it:

FBA Liquidations: This is a liquidation program offered by Amazon to FBA sellers. Under this program, Amazon links sellers with wholesale companies to buy the excess inventory. However, this is an invite-only program available to US sellers and non-US sellers running their Amazon business in the US marketplace.

Run a Giveaway: Before liquidating, host a giveaway to attract attention to your products. This can help sell excess stock, boost your brand, and even promote new inventory.

Sell on Deal Sites: Try selling your products on platforms like eBay, Shopify, or Walmart. It could still bring in profits, even if Amazon didn’t work out. Remember, transferring inventory from Amazon will incur a fee.

Social Media Marketplaces: Use platforms like Facebook Marketplace or Instagram Shopping to sell directly to customers.

Sell to Competitors: If your products are high quality and relevant, negotiate with competitors who might buy your stock. Aim to sell close to the cost price to minimize losses.

Donate to Charity: If selling isn’t viable, donating your excess inventory is a great way to avoid disposal costs and help those in need. Amazon’s FBA Donation Program is an option but may involve some fees.

Final Thoughts

Effective Amazon FBA Inventory Management is essential for keeping your Amazon business profitable. It not only helps you avoid excess storage fees, but it also helps you make better decisions about which products to sell and stock. FBA automates most business tasks, but it doesn’t get rid of items from your stock until they sell. With so many things to keep track of when you become an Amazon seller, you may need help. Are you looking for the expertise to get started with Amazon FBA? Do you need assistance with sourcing and listing products or need help making a decision about aged inventory? SPCTEK is your expert and offers free consultation calls!

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FAQ’s

How can I identify aged inventory on Amazon?

• Inventory Management Reports: Use Amazon’s Inventory Management reports to track inventory age and identify products with low sales velocity.
• FBA Inventory Age tool: Third-party tools like Inventory Age by Helium 10 can help you visualize and analyze your aged inventory in different ways.

How often should I review my aged inventory?

It’s crucial to regularly review your aged inventory, ideally weekly or bi-weekly. This allows you to identify potential issues early and take timely action to mitigate them.

What are the penalties for exceeding inventory storage limits?

If you exceed your inventory storage limits, Amazon will charge you a storage fee for each excess unit.

What is the difference between Amazon FBA and FBM?

• FBA (Fulfillment by Amazon): Amazon stores your products in their fulfillment centers and takes care of picking, packing, shipping, and customer service.
• FBM (Fulfillment by Merchant): You store your own products and handle all aspects of fulfilling orders yourself

How long does it take to start making money with Amazon FBA?

It can take several months to start making a profit with Amazon FBA, as it takes time to build up inventory, sales, and positive reviews. However, with hard work and dedication, you can build a successful Amazon FBA business.

Are there any Amazon aged accounts for sale?

Yes, there are aged Amazon accounts for sale on the market, but Amazon usually doesn’t allow the transfer of an account to anyone else. Amazon states that ‘seller accounts generally are not transferable’. However, you can consult with a legal expert and Amazon Seller Support to understand the specific requirements and procedures involved.

You can buy regular retail items, sell them on Amazon for a profit, and make a good amount of money, but that’s easier said than done, right? Whether you are entering the marketplace or have been here for a while, you might know that Amazon FBA inventory management is a challenge in itself.

However, understanding how to manage Amazon inventory and using it to your advantage can greatly help you scale your business.

In this article, we will answer a question that worries a lot of new entrants in the eCommerce world of Amazon. What happens to my products when they don’t sell on Amazon? How long do they stay in the inventory, and what happens to them after that?

Read along to get the answers!

But First, What is Amazon FBA?

First things first, what does Amazon FBA really mean? Well, it stands for Fulfillment by Amazon. It is a service that allows sellers to delegate the order fulfillment process to Amazon. Sellers send their products to Amazon fulfillment centers, and when customers place their orders, Amazon fulfills the order. In addition, Amazon also provides customer service and processes returns for these orders.

How to Start Selling Via Amazon FBA

Fulfillment by Amazon, or FBA, takes away tedious parts of the business and performs them more efficiently on your behalf. No worries about staffing or timely shipping!

Still, it does not make your business a hands-off investment. It will still require work from you. So here is how you can start selling on Amazon FBA:

Sign up as a Seller

First, create an Amazon seller account. It is recommended that you set it up before you have the product. There are options: sell as an individual or as a professional plan. The Individual plan costs $0.99 per sale, while sellers using the Professional plan pay $39.99 monthly, no matter how many items they sell. If you sell more than 40 items a month, the professional option makes a lot of sense. 

Don’t worry about making the wrong choice; whichever plan you select, you can change plans at any time.

Find Products

There are tools available that help you assess the market and decide what products you can sell to make a profit.

You can either sell your own products or buy retail items at wholesale prices and sell them at retail prices on Amazon.

List the Products on Amazon

Once you have the product you want to sell, it is time to list it on Amazon so that customers can find it. When finalizing the listing, choose the Fulfilled by Amazon (FBA) option for your offer.

Ship Your Products to Amazon’s Fulfillment Center

Now you are ready to send your products to Amazon’s Fulfillment Center. But first, you have to put an Amazon-generated barcode on your product, which helps Amazon keep track of your product and prevent mixing it with other sellers’ products.

Congratulations Your Products are Live!

Once your products are received at an Amazon fulfillment center, your products go live. Customers place orders, and Amazon deals with the rest. Even if there is a problem and the buyer wants a return or a refund, Amazon handles that too.

Also Read: 10 Strategies for Amazon Inventory Management: Updated Guide

What does Amazon do with the aged inventory?

As part of Amazon FBA Inventory Management, Amazon charges you the following two types of storage fees:

• Monthly Storage Fee
• FBA aged inventory surcharge (previously known as long-term storage fees)

Monthly Storage Fee

The monthly storage fee depends on your product’s size and quantity. The bigger the size, the higher the per-cubic-foot rate. Similarly, the busier the season, the higher the storage fee. It is the main Amazon FBA Inventory fee you pay.

These are the current monthly storage fees for storing products in Amazon’s fulfillment centers, as mentioned in the chart.

                                                 Source

FBA aged inventory surcharge (previously known as long-term storage fees)

On the 15th of every month, Amazon performs a stock check. During this process, they keep track of any items in their fulfillment centers for 181 days or more. Depending on how long the goods have been stored, the seller will have to pay an aged inventory fee. The fee, similar to the monthly storage fee, is taken from either your Amazon seller account balance or the credit card linked to your seller account on the same day each month.

The FBA aged inventory surcharge previously known as the long-term storage fee is not a substitute for the regular monthly storage fee. Instead, it is in addition to the regular monthly storage fee.

What Should You Do With the Aged Inventory?

You must manage excess inventory effectively to avoid paying the long-term storage fee.

You can opt for Amazon FBA Inventory Management services to delegate this task.

Alternatively, you can sign up for Amazon’s automatic aged inventory removal, which would eliminate the excess inventory using your preferred removal mode from the following three options:

You can request that Amazon destroy, liquidate, or deliver it back to you.

Dispose off the Inventory

If you want Amazon to dispose of your aged inventory, then you would need to file a removal order and choose the “Dispose” option. It is preferred for inventory that is expired and no longer usable.

Getting it Back from Amazon

Another option is to select “ship-to-address” while creating your removal order. This option is more suitable if you wish to sell your inventory elsewhere or hold it for another season.

Liquidate Inventory

If you want to sell off your excess inventory quickly, you can choose “Liquidate.” This means Amazon will sell the items on your behalf, typically at a discounted price, and you will receive a portion of the sales. This is a good option if you want to free up space and recoup some of the inventory costs.

How to Liquidate Amazon FBA Inventory?

Inventory liquidation means selling off your excess or unwanted inventory at a low price to free up your storage and improve cash flow.

If you are an FBA seller, clearing excess inventory eliminates unnecessary and excessive storage fees charged by Amazon. This also relieves the stress and anxiety associated with holding unsold stock that incurs extra costs.

However, It’s crucial to consider these points before liquidating Amazon FBA inventory:

Analyze Seasonality: If you’re selling a seasonal product you have to take into account the seasonality before liquidating. For example, you won’t be able to sell your winter clothes inventory during summer. So you have to decide whether you need to liquidate your inventory or recall your inventory until the next season.

Assess Account Health: Your drop in sales can be due to inefficient customer service resulting in negative reviews. So before liquidating your inventory, you can try to improve your customer service.

Optimize Product Listings: One of the reasons for low sales is unoptimized listings. Ensure your product listings include the right keywords and appealing product descriptions.

Review Pricing Strategy: If your prices are not competitive, shoppers won’t buy your products. So before deciding to liquidate, you should evaluate and adjust your pricing to remain competitive and attractive to buyers.

Also Read: Bulk Updating Amazon Inventory Simplified: A Step-by-Step Tutorial

Ways to Liquidate Amazon FBA Inventory

If you have finally decided to liquidate your inventory, there are several ways you can do it:

FBA Liquidations: This is a liquidation program offered by Amazon to FBA sellers. Under this program, Amazon links sellers with wholesale companies to buy the excess inventory. However, this is an invite-only program available to US sellers and non-US sellers running their Amazon business in the US marketplace.

Run a Giveaway: Before liquidating, host a giveaway to attract attention to your products. This can help sell excess stock, boost your brand, and even promote new inventory.

Sell on Deal Sites: Try selling your products on platforms like eBay, Shopify, or Walmart. It could still bring in profits, even if Amazon didn’t work out. Remember, transferring inventory from Amazon will incur a fee.

Social Media Marketplaces: Use platforms like Facebook Marketplace or Instagram Shopping to sell directly to customers.

Sell to Competitors: If your products are high quality and relevant, negotiate with competitors who might buy your stock. Aim to sell close to the cost price to minimize losses.

Donate to Charity: If selling isn’t viable, donating your excess inventory is a great way to avoid disposal costs and help those in need. Amazon’s FBA Donation Program is an option but may involve some fees.

Final Thoughts

Effective Amazon FBA Inventory Management is essential for keeping your Amazon business profitable. It not only helps you avoid excess storage fees, but it also helps you make better decisions about which products to sell and stock. FBA automates most business tasks, but it doesn’t get rid of items from your stock until they sell. With so many things to keep track of when you become an Amazon seller, you may need help. Are you looking for the expertise to get started with Amazon FBA? Do you need assistance with sourcing and listing products or need help making a decision about aged inventory? SPCTEK is your expert and offers free consultation calls!

FAQ’s

How can I identify aged inventory on Amazon?

• Inventory Management Reports: Use Amazon’s Inventory Management reports to track inventory age and identify products with low sales velocity.
• FBA Inventory Age tool: Third-party tools like Inventory Age by Helium 10 can help you visualize and analyze your aged inventory in different ways.

How often should I review my aged inventory?

It’s crucial to regularly review your aged inventory, ideally weekly or bi-weekly. This allows you to identify potential issues early and take timely action to mitigate them.

What are the penalties for exceeding inventory storage limits?

If you exceed your inventory storage limits, Amazon will charge you a storage fee for each excess unit.

What is the difference between Amazon FBA and FBM?

• FBA (Fulfillment by Amazon): Amazon stores your products in their fulfillment centers and takes care of picking, packing, shipping, and customer service.
• FBM (Fulfillment by Merchant): You store your own products and handle all aspects of fulfilling orders yourself

How long does it take to start making money with Amazon FBA?

It can take several months to start making a profit with Amazon FBA, as it takes time to build up inventory, sales, and positive reviews. However, with hard work and dedication, you can build a successful Amazon FBA business.

Are there any Amazon aged accounts for sale?

Yes, there are aged Amazon accounts for sale on the market, but Amazon usually doesn’t allow the transfer of an account to anyone else. Amazon states that ‘seller accounts generally are not transferable’. However, you can consult with a legal expert and Amazon Seller Support to understand the specific requirements and procedures involved.