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Amazon operation strategy: Amazon's 4-step combo teaches you to efficiently avoid inventory accumulation. Don't let this kind of inventory silently consume large storage fees!
December 12, 2022
Contents:
1. Changes in US storage fees!
● New!Storage usage surcharges
● Additional charge!Aged inventory surcharge
● Improve!Monthly inventory storage fee
2. Clean up inventory and the four-step combo method!
● Expand the market
● Promotion sale
● Transferred goods
● Clean up redundancy
1. Changes in US storage fees!
● New!Storage usage surcharges
● Additional charge!Aged inventory surcharge
● Improve!Monthly inventory storage fee
2. Clean up inventory and the four-step combo method!
● Expand the market
● Promotion sale
● Transferred goods
● Clean up redundancy
01: New!Storage usage surcharges
A storage utilization surcharge will be levied on sellers who store in Amazon logistics fulfillment centers and whose inventory volume is high compared to their recent weekly sales volume.
📍 Effective date: April 1, 2023
📍 Affected sellers: Professional sellers with a storage utilization rate higher than 26 weeks
02: Additional charge!Aged inventory surcharge
📍 The storage age is between 271-365 days:
Increase the surcharge for the storage age between 271-365 days.
📍 The storage age is between 180-270 days:
Overage inventory surcharges apply, excluding the following categories of products: clothing, shoes, bags, jewelry, and watches.
📍 Effective date: April 15, 2023
03: Improve!Monthly inventory storage fee
📍 Non-peak season storage fee (January to September):
● An increase of $0.04 per cubic foot for standard-sized products;
● Oversized items increased by $0.03 per cubic foot.
● Oversized items increased by $0.03 per cubic foot.
📍 High season storage fee (October to December):
● The cost of sortable goods will remain the same;
● Unsortable large items add $0.20 per cubic foot.
● Unsortable large items add $0.20 per cubic foot.
📍 Effective date: February 1, 2023
Xiaobian has summarized the detailed introduction of each storage fee for you:
Seeing this, you probably have an idea: the biggest “culprit” that may incur additional storage costs is overage inventory. Compared with the monthly storage fee, the surcharge for overage inventory is high, especially for over 365 days of overage inventory. During the peak season in the fourth quarter, the surcharge for overage inventory may be up to 13 times higher than the usual monthly storage fee!
Xiaobian suggests that everyone handle it in a timely manner to avoid large storage expenses. When it comes to cleaning up inventory, sellers can try a four-step combo: expand the market, sell for promotions, move products, and clean up excess.
Facing a backlog of inventory, maybe you should try expanding to another site before selling at a reduced price?Amazon has set up a complete and convenient logistics system to help sellers sell products to other sites. Sellers only need to manage this site and leave complicated operations such as cross-border delivery management to Amazon Logistics!
Click to learn more:
👉 Amazon Logistics European Integration Service (Pan-EU) Details
👉 Amazon Logistics European Integration Service (Pan-EU) Details
In addition to expanding the market, the second step in removing inventory can be solved by reducing the price and clearing the inventory. Sellers are advised to use promotional methods with a relatively low entry threshold, such as coupons, Prime exclusive discounts, and deals. These widely used daily promotion methods can increase product traffic, reach customers accurately and efficiently, and even stimulate purchases to increase sales, which is very helpful for quickly removing inventory.
Click to learn more:
👉 Tips for setting up Prime-only discounts and coupons
👉 Amazon Marketing Calendar Details 👉 Amazon Outlets Limited Time Sale Details
👉 Tips for setting up Prime-only discounts and coupons
👉 Amazon Marketing Calendar Details 👉 Amazon Outlets Limited Time Sale Details
Even with the price reduction promotion, it is still impossible to reduce the inventory backlog, and you don't want to remove the inventory, so if Amazon's storage capacity is insufficient, you can try cooperating with an overseas warehouse service provider to move some of the inventory to a third party's overseas warehouse for storage and sale. How to choose an overseas warehouse service provider?You can check it out using the Amazon SPN Service Provider Network.
The Amazon SPN Service Provider Network conducts a comprehensive evaluation and review of overseas warehouse service providers based on the service provider's reputation, service capability, and brand influence.
Overseas warehouse services can meet the following needs:
✔ Standard size for dropshipping
✔ Send large items one by one
✔ Warehousing and forwarding
✔ Domestic self-delivery returns and processing
✔ Other returns and processing
✔ Standard size for dropshipping
✔ Send large items one by one
✔ Warehousing and forwarding
✔ Domestic self-delivery returns and processing
✔ Other returns and processing
When the three methods of clearing inventory don't work or don't want to be used, the last resort is to remove the inventory, but it's a pity to just throw away good products, so automatically removing inventory can help you reduce losses to the greatest extent!
Automatic removal is not a direct disposal of inventory; once the seller opts in automatic removal, the automatic removal feature will automatically help you dispose of your inventory in the order of value recovery from largest to smallest, without the seller's manual action. After that, sellers do not want to continue using the automatic removal feature and can opt out of automatic removal at any time in Seller Central.
👉 Click to view the operation process of automatic removal and batch clearance plans
👉 Click this link to go to Seller Central to learn more about the Bulk Clearance Program:
Whether considering the high fees or the need for more inventory in the fourth quarter, seller friends can use a combination of the above four methods to clean up inventory!
👉 Click to learn more about the four-step methodology for cleaning up overage inventory: What to do, overage storage fees are super expensive! Amazon teaches you 4 steps to monetize your inventory!
New Seller Onboarding Guide Video
Before entering Amazon, please read the registration guide video, prepare relevant registration materials in advance, understand the specific registration process, and help you start a store smoothly!
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