With the peak months for most product categories now gone, vendors need to ensure Amazon is not sitting on a pile of inventory that could end up on the doorstep of their warehouse in a few weeks or months’ time. While Amazon is often conservative when it comes to ordering, some vendors may still find themselves overstocked in January.
If you are reading this and you are one of those lucky vendors that agreed zero returns rights on overstocks, you are probably smiling and pleased that this announcement won’t apply. However, while overstocked inventory may not appear back in your warehouse, as an alternative Amazon may start heavily discounting your products to clear down their weeks of cover. This is also something you should want to avoid. Regardless of your agreement, managing overstocks should be a key priority to either avoid returns or discounting.
As an action, we recommend you regularly check the Inventory Health Report in ARA and focus on accelerating sales on any aged inventory of 90 days plus. To help boost sales, you should ensure that you are running sponsored ads on these items, that the content is well optimized, and consider running some promotions (such as price discounts or coupons). By jumping on promotions before Amazon reduces the retail with a straight price drop, you can help maintain some control of the pricing, ensuring any price reductions are only temporary.