Amazon Prime Day has become a huge opportunity for sellers. But what happens when you have a large shipment coming in specifically for Prime Day promotions, and you miss the deadline? Next to what has come to be known as Black Friday, Prime Day has turned into one of the best shopping days of the year. But if your shipment doesn’t arrive in time you just may find yourself in a position where it’s best to closeout Amazon inventory and quickly move on. If it is going to take months or longer to sell through, you might have to pay long term storage fees and other charges. A better option may be to sell your closeouts and discontinued inventory at a discount now, rather than paying a small fortune to keep it at Amazon.
Amazon sellers often have closeouts and discontinued inventory due to slow sales, high long term storage fees or poor ratings. But when a seller intends to ramp up inventory by importing additional product for Prime Day, it is important to have your operation firing on all cylinders. If only one part of the process goes wrong, sellers may have to sell excess inventory just to get it out of Amazon’s warehouse. Amazon has one primary goal which is to continue giving the consumer the very best possible shopping experience. When sellers have product that is moving slowly or has poor ratings, Amazon wants it gone. They motivate online sellers to get rid of discontinued inventory and slow selling merchandise by putting in place very high storage fees and making it cost prohibitive to keep inventory in their warehouse. Most Amazon sellers are faced with getting rid of closeouts at one time or another because it is expensive to keep discontinued inventory in the warehouse.
You can avoid most of the problems if you do your own fulfillment. Unfortunately, this can be even more costly than selling on Amazon FBA and often leads to new problems. Amazon favors sellers who keep products in their distribution system where it can be shipped out immediately; often for same day or next day delivery. Many online sellers closeout Amazon inventory because they tried and failed at doing their own fulfillment from either their own warehouse or a 3PL warehouse. If you have to sell excess inventory because your own distribution was not fast enough, you probably learned the hard way about having to sell closeouts and discontinued inventory to raise cash. This is an expensive lesson and one that is best to avoid if possible. If you have to closeout Amazon inventory it is likely due to slow sales, stiff competition, or poor ratings. In any of these cases your best bet is to get rid of inventory and move on.