Let’s face it, Amazon has been one of the best inventions of all time. Think how easy it is to buy anything you need without having to visit even one shopping center. And how amazing is it that you can compare prices and likely get the best deal on Amazon without having to go store to store comparing prices. And on top of everything, once you place your order there is a good chance it gets delivered to your house the very next day. This is nothing short of amazing. Unfortunately, many Amazon sellers don’t have the same warm fuzzy feeling for Amazon as consumers. Selling inventory on Amazon is not as easy as it looks.
Many sellers find themselves in a dark place where they aren’t selling inventory, and they are forced to close their seller account and have an overstock liquidation sale. This can happen for a variety of different reasons and we will examine some of them below. But at the end of the day these sellers find themselves selling excess inventory because they couldn’t make it work with Amazon.
Reason #1: Slow Sales. Amazon will not allow you to keep merchandise in their FBA warehouse if it isn’t selling. They are all about keeping their customers happy by giving them a pleasant and fulfilling buying experience. A big part of this is not having Amazon bogged down with slow selling inventory nobody wants. So if you don’t keep your inventory moving, you will end up having to sell excess inventory at a fraction of regular cost to inventory liquidators
Reason #2: Listing Canceled. If you are selling inventory that is not properly registered or trademarked, your listing will be canceled and you will looking at having an overstock liquidation sale. Your merchandise will have to be removed from Amazon’s warehouse before they start charging you extra storage fees. Many Amazon sellers don’t understand that selling inventory on this platform is a challenging proposition, and in many cases they end up dealing with inventory liquidators to sell excess inventory. When faced with this kind of overstock liquidation many sellers lose money in order to get rid of their merchandise.
Reason #3. Not Profitable. It is possible that your items are selling well on Amazon and you are actually selling inventory and moving a lot of product. But you are may be losing money on every sale. Amazon fees, shipping costs, advertising costs, warehouse expense, and customer returns all eat into profit. So you may be selling inventory but losing money. This would be a good time to have an overstock liquidation sale, sell excess inventory left in your Amazon store, and move on. You can contact inventory liquidators who will make you an offer to buy everything in one fell swoop.
Selling on Amazon may appear good from the outside, but it isn’t as easy as it looks. If things don’t work out as planned you may be faced with having to sell excess inventory to inventory liquidators. And when selling inventory in an overstock liquidation sale can be painful because you are selling at a loss.