10 Reasons Why Removing Amazon Inventory is Important

Protect your business by knowing when Removing Amazon Inventory is a long term profitable maneuver. There are 10 variables related removing Amazon inventory. Know when to pull inventory and store it under a roof that’s less expensive than an Amazon fulfillment center. And always make sure to check the storage rates at Momentum Warehousing as a point of reference for storage costs.

Remove Amazon Inventory to Manage Supply & Demand

Keeping excess FBA inventory can tie up capital and resources that could be used more effectively elsewhere. For example, if you’ve put all your inventory into Amazon and have not diversified across different platforms, perhaps Removing Amazon Inventory can help you active new listings on new platforms to catch a larger audience. Make sure you do not put all your eggs in the Amazon basket. New sellers should diversify to Walmart, Etsy, Ebay and Shopify.

Alternatively, you may need to pull inventory that is out of season for the year. Store it cheap until that season rolls back around. A prime example is sellers who wholesale Halloween or Christmas products. They only need Amazon storage for 4 months out of the year. If they stick around longer, excess inventory can lead to increased storage costs, potentially outdated products, and the risk of products becoming obsolete.

Remove Amazon Inventory to Save Money

What are you paying for storage every month? Amazon charges storage fees for products held in their fulfillment centers. And make no mistake – these are premium storage rates that sellers pay. Especially for extended periods of storage time. By removing inventory that isn’t selling well, you can reduce these monthly FBA storage costs and save money. Find a 3PL like Momentum Warehousing who offer affordable long term storage compared to Amazon.

Boost Sales Performance By Removing Amazon Inventory

Products that aren’t selling well can negatively impact your overall IPI (Inventory Performance Index). Sellers do well to protect this metric by removing slow-moving inventory. It will boost your sales rank and visibility for other products that have better sales potential.

Algorithmic Impact on Seller Central

Again, Amazon’s algorithms favor products that are selling well and have good customer reviews. By removing Amazon inventory that’s sluggish, you will curry the favor of these algorithms. Afterall, Jeff Bezos wants the best products selling on his marketplace, not dust collecting, slow moving, poorly reviewed products. This is summarized by a sellers IPI score. By removing poor-performing products, you can improve your store’s overall visibility and discoverability.

Customer Experience

By removing Amazon inventory that aren’t selling on Amazon, you can focus on maintaining a better stock of products that customers are more likely to buy. Out with the old – in with the new.

FBA Product Rotation

Regularly removing slow-moving Amazon inventory allows you to rotate new products into your inventory mix, keeping your offerings fresh and appealing to customers. This is akin to trimming the fat every six months to ensure your Amazon store’s inventory stays lean and ready to scale when sales boost.

Market Trends and Changes

Remember Fidget Spinners? Remember the rush to source and sell these as quickly as possible on Amazon? Well, consumer preferences and market trends change quickly. Viral products come and go. So removing outdated Amazon inventory or unpopular inventory enables you to adapt to these changes and stay relevant in the marketplace.

Improved Profit Margins

Grow your winners. Scale your success. Remove Amazon Inventory that’s anchoring your overall operational profit down. By concentrating on products with higher demand and better margins – you focus on what’s working well.

Reduced FBA Listing Clutter

Heard of Analysis Paralysis? Perhaps you provided too much variability in the child listings of your product. As a result, you may lose customers near the middle of your sales funnel because they can’t make a decision. A cluttered inventory can make it difficult for customers to find what they’re looking for. By removing Amazon Inventory and unproductive items, you can streamline your inventory and create a more user-friendly shopping experience.

Growing New Amazon Products

Removing Amazon Inventory that is underperforming allows you to allocate your resources, time, and efforts more strategically towards products that have a higher likelihood of success.