How to Handle Excess and Old Amazon FBA Inventory

In this video, Jimmy goes through a valuable lesson that can be used from one of the largest retailers in the world…Target! They are currently liquidating their excess and old inventory to free up capital and space for newer, more profitable and in-demand products. Jimmy also goes through his Standard Operating Procedure for how he handles excess and old Amazon FBA inventory in his $1,000,000+ per year business.

Here is Jimmy’s process outlined in the video:

Check Inventory Age Report
1. Log in to Seller Central
2. Go to Inventory - Inventory Planning
3. Click on Manage Inventory Health (Excess and Aged Inventory)
4. Click on the Inventory Age Column to Sort by Oldest to Newest
5. Some items will be sporadic and not in order, but it still helps to group most together

Inventory Over 30 Days (0-60)
1. Any inventory between 0-60 days that has an “estimated excess units” number will be something that needs to be re-analyzed by looking at the Keepa chart and profitability metrics
2. If necessary, lower the price to a point where the item used to sell well per the Keepa chart if it’s still profitable
3. Otherwise, leave it until it gets over 60 days old

Inventory Over 60 Days
1. Anything over 60 days old should be the most concerning
2. Reevaluate the listing to see what may have changed
3. If you can lower the price to a profitable amount to sell quickly, do this first
4. If you can’t, look for other listings you can sell it on profitably keeping in mind the fees for recalling products
5. If you can’t find any other listings, then if you can lower the price to the buy box to at most losing 10% ROI then do that
6. If the price would be at a point lower than a loss of 10% ROI, then recall or liquidate depending on the product

Let me know your questions and thoughts in the comments!

Links Mentioned:

Advanced Replens Mastermind (Sellers Doing Over $10k/Month):

CNBC Article:

Free Amazon Facebook Group:

500+ Success Stories:

Amazon Coaching (affiliate):

Side Hustle to Full Time Income Book:

Jimmy’s Amazon Selling Course:

Disclaimer:
While all of these success stories/testimonials are from real people and we get more each and every day, please understand however that the results posted are not typical. I'm not implying you’ll duplicate them or that you’ll get any results at all! Your results will vary greatly and will depend on many factors including your experience, work ethic and other factors as well. The fact is, the average person who buys any business course or training gets little to no results. The results I share here and in other places are for reference only. Business always involves risk and your best chance of success is to take consistent, intentional action. We can equip and inspire you, but no one, including me can guarantee your results!

[carmenfranco]

Thank you so much for this video I asked Amazon to help me figure this out cuz I have too much inventory not selling. So thanx again. I listen to you all the time🙂

[full-timefbabyfiz]

I was searching solution for my products this is best video with best solutions. I will also post these solutions in my language to help people.
Thanks

[beverleybrown]

Thank you for video, it sure helped me on what to do.

[anfieldreds_]

solid video. will look at implementing this. don’t have a warehouse though so I may just give to charity .

[mayehsjourney]

Just subscribing, , thankS by the way, , What are the other best effective ways for excess inventory?

[saharatsakulsaowapakkul]

Will adding “search term” help?

Thanks.

[saharatsakulsaowapakkul]

Hi Jimmy, I plan to create removal order for my excess inventory. But thanks to your video, I change my plan to sending them to prep center, ask them to re-label the item and re-send them into FBA warehouse as new ASIN (which is the same product and have sales history)

Can you suggest me a good prep center to do so?

[ashlynnsimms]

Great video! What’s the cheapest way to get rid of inventory that’s older than 6 months besides bringing down price? Donate so they send it home to me or have amazon throw away?

[Ibtisamnadeem-ry]

Please Guide,
If I am selling products with expiry dates and I have age inventory, Can I recall specific units with near to expire products?
For example If I have 40 age units and I recall 30 of them, Those will be any 30 or amazon follow any rule there?

For grocery or expire able products management, separate SKUs to manage expiry dates is the only option?

[BBFlips]

I have 284 skus 180+ days and then like 84 are 61-90 and then 142 are 0-60. What I get from this is every book I’m sending in I should aim to sell in 60 days. I’m guessing if my 284 skus 180+ don’t sell then I pay the $1-$3 liquidation fee on each🤦‍♂️ so I should drop to lowest price on all. My sell through is at a 0.32 and I’m at a 419/1000 performance 😢 I get really good books now but bought too many books that were millions in rank and low sale score when I first started. Thankfully buy cost is always around 50 cents to $1 but just thinking of all that time and energy lost hurts sm. Any tips for the future or videos you can refer me to on clearing most your fba inventory to essentially “start over”? Thanks!

[RonRussellJr]

If you download the Manage Inventory Health report in CSV format, Amazon provides a lot more data, including aging 0 to 30 days, 31 to 60 days, 61 to 90 days, 181 to 330 days, and 331 to 365 days. There's a noticeable gap from 91 to 180 days, but we probably do not want anything to get to this point anyway.

[apost]

I sent in a product and realized it was misbranded after the fact. I would prefer to just have amazon get rid of the product. Do you just delete the SKU from your inventory and leave it as "stranded inventory"?

[briangreenwood]

How do I delete Excess inventory percentage products that have sold and eventually I deleted the product BUT it still show up under my excess inventory % over 6 months after sold and deleted.