Why Amazon Sellers Dispose of Their Inventory
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Amazon sellers often face inventory disposal due to various reasons such as excess stock, unsellable returns, or products that do not meet Amazon’s stringent quality standards. Disposal can occur automatically if items are deemed unsellable and not removed promptly from Amazon's fulfillment centers.
Why It's Important to Preserve Inventory from Disposal
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Preserving inventory from disposal is crucial for maintaining profitability. Disposal leads to a direct loss of investment in inventory and additional charges from Amazon for the disposal service. Efficiently managing inventory helps avoid unnecessary waste and supports sustainability practices.
Starting from 2024, Amazon has even increased the disposal fees for inventory. Consequently, discarding products not only incurs inventory loss but also doubles the loss due to the disposal fees paid to Amazon.
How to Preserve Inventory from Disposal
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Regular Monitoring and Management
Keep track of inventory levels and sales velocity to avoid overstocking and long-term storage fees which can lead to disposal decisions .
Quality Assurance
Ensure that products sent to Amazon meet all quality standards and packaging guidelines to prevent damage and subsequent disposal
Strategic Removals
Set up automatic removals for unsellable inventory before it becomes eligible for disposal. This allows for reassessment or repurposing of returned or excess stock.
Service Providers with Disposal Solutions
REMEX: Specializes in handling Amazon unfulfillable inventory by offering liquidation, re-prep, and re-FBA services for damaged returns and excess stock. This service helps sellers recover value from potential disposal
B-Stock Solutions: B-Stock offers a marketplace for Amazon sellers to liquidate excess or returned inventory by selling in bulk to a network of business buyers. This platform helps sellers recover costs and clear warehouse space by providing a secondary market to resell unsold stock, reducing potential losses.
Other Vendors: Other service providers offer similar liquidation services or charitable donation options to dispose of excess inventory in a responsible way.
Conclusion
Avoiding inventory disposal is vital for Amazon sellers focused on maximizing profits and reducing waste. By implementing strategic inventory management practices and partnering with service providers like REMEX, sellers can effectively minimize unnecessary disposals and enhance their operational efficiency.
