Manage excess inventory stored at the Amazon Fulfillment Centers

by Arshiya Dey and Varsha Menon on 13/01/2016
As an Amazon seller, if you use the Amazon Fulfilment Centers (FBA service) to stock your products, you should also be well prepared to manage sale fluctuations. There will be months when you make huge amounts of sale and some months when your sales may not be as high. During the time when your sales drop, you might be left with a lot of unsold inventory or stock of products. These unsold products could take up a lot of space in the Fulfilment Centers. To help overcome and avoid such a situation, let us first understand the Inventory Dashboard.

What is the Inventory Dashboard?

The inventory dashboard contains a summary of the Inventory metrics that help identify opportunities to improve inventory efficiency, and Instock performance ( Identify products in stock that help you earn profit from products that don’t help your earnings) .The inventory card on the right also provides a snapshot of your account metrics and helps you identify areas where you can take action to improve your inventory performance. Additionally, you can also take the following actions to improve your fulfillment center inventory health:

It is always advisable to remove excess products stocked up at the fulfillment center, however, if your products are seasonal and sell only during a certain time, you can click on the Manage Excess Inventory tab to identify the products that might be in excess and review the information to either remove them or store them for some more time. You can also use ligtning deals to move slow moving products.

The Inventory Dashboard automatically recommends the most appropriate action to be taken on the ASIN/product to improve sales and removals based on a variety of factors like the age of the product, expiry period if any, demand, percentage of sale etc.You can also use the checkbox to perform a bulk action for multiple products and click on the download button to download the complete set of recommendations to act accordingly.

The inventory age tab gives the age of the units in the Fulfilment Center. It also shows you the number of units in each age group and the number of units that will be charged the Long Term Storage Fee on the next charge date. This fee is charged for those sellable units that have been stored at the Fulfilment Centers for more than 180 days. It is best to price these prodcuts competitively, use lightning deals to push them and promote them through sponsored product ads.

Fix stranded inventory refers to products in the Amazon Fulfilment Centers which do not have active offers. You can follow the recommended action on the dashboard to rectify any stranded inventory.

Also, watch this video for a quick understanding of the concept. If you haven’t yet signed up for FBA please click here. If you have not started selling on Amazon please click here.

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