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Have Excess Inventory? Here’s How Amazon Outlet Can Help

Currently in beta, Amazon Outlet is a dedicated section on where consumers can bargain shop. Learn how to participate in the program here. By IT June 21, 2019
Have Excess Inventory? Here’s How Amazon Outlet Can Help

Effective inventory management is a precise practice that takes time and efficient workflows to perfect. To maximize the performance of your in-stock SKUs and avoid unnecessary storage fees, maintaining between 30 and 60 days of inventory on hand is a good rule of thumb for inventory management. Amazon defines excess inventory as follows:

  • If at least one unit of inventory is more than 90 days old
  • If the product has over 90 days of supply, and
  • The cost of holding your inventory without taking any action is more than the cost of taking action (such as lowering your prices to increase sell-through or removing surplus inventory)

Amazon bases estimated excess inventory on product demand and your costs (such as fees and unit costs) and then estimates the level of inventory that can provide the highest ROI for your business.

Amazon’s latest move in inventory optimization is the Amazon Outlet beta program. In a dedicated landing page — — Amazon has compiled overstock deals, inventory closeouts, and markdowns in one place for consumers to bargain shop. To participate in the program, you need to offer Outlet deals on qualified overstock ASINs.

The product offers that qualify for Outlet need to demonstrate either 30% off the previous day’s lowest Buy Box price or 30% off the average Buy Box price from the previous 30 days. The Outlet is categorized for ease of use and broken up into groups such as Overstock Deals, Best Sellers, and Super Discounts.

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How to Participate in Amazon Outlet

1. To enroll in the program, email and tell Amazon why you are interested.

2. Amazon will respond back with your eligible overstocked ASINs and a submission form you need to complete in order to move forward. If you do not have any eligible ASINs, Amazon will reach back out when you do.

3. Submit the form to Amazon within two weeks of receiving the invitation.

You can only use Outlet for offers on excess inventory that is currently available for sale and in Amazon fulfillment centers, meaning that you need to be utilizing FBA for the specific SKUs you wish to sell in the Outlet. Consumers can search for discounted products by price range (i.e. “Under $25”) or even discount amount, such as “70% Off or More.” With new deals and an evolving item selection each day, the Outlet store offers steep discounts on merchandise ranging from electronics and home furniture to apparel and automotive supplies.

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