Key takeaways
- Diagnose why stock is not selling.
- Know your monthly cost of holding.
- Compare price cuts, bundles and other channels.
- Act early and change purchasing rules.
Diagnose before discounting
Find out why stock is not selling. Is the price uncompetitive, the listing weak, the product misunderstood or demand simply lower than forecast? Fix listing issues first, because a better page may sell stock without deep discounts.
Quantify the cost of holding
Add up storage charges, aging surcharges, cost of capital and the risk of obsolescence for each month stock remains. This number is the benchmark for judging every alternative.
Price adjustments
Test modest reductions and measure the response. Small changes may be enough. Evaluate the effect on profit and brand perception, and consider tracking the effect on the price you can restore later.
- Small test reductions
- Time-limited promotions
- Coupons or deals if eligible
- Monitoring margin per unit
Bundles
Pair slow movers with products that sell well, creating a bundle that offers a clear customer benefit. Bundles must follow Amazon's rules for bundling and listing, and inventory must be managed carefully so each component is available.
Advertising support
Targeted advertising can help slow products regain visibility, but only if the listing converts. Limit spend with a budget and measure the effect rather than pouring money in.
Alternative channels
Consider selling excess stock through other channels such as your own website, wholesale buyers or liquidation partners, within brand and agreement constraints. Compare net proceeds, not just prices.
Removal and disposal
When the product will not sell at a viable price, removal or disposal may be the cheapest answer. Calculate fees and recovery before deciding, and keep accounting records for write-offs.
A worked example
A seller has several months of supply of a slow product. After fixing the images and title, they run a small promotion and bundle the item with a popular accessory. Sales improve and they sell the remainder through a wholesale buyer, avoiding aging charges.
Common mistakes
Typical mistakes include discounting before diagnosing, waiting too long and ignoring holding costs. Another is repeating the same overbuying mistake. Document lessons and change purchasing rules.
A decision table for clearing stock
Create a simple table with one row per excess product and columns for units on hand, monthly holding cost, current price, minimum acceptable price, preferred action and deadline. Add a column for the person responsible. The table turns a vague worry into a plan that can be reviewed in a ten-minute meeting.
Update it weekly and remove rows as stock clears. Over time it also shows which products repeatedly end up here, which points to a forecasting or sourcing issue worth fixing at the source.
Your next three steps
Create a decision table for your excess stock.
- List each product with units, monthly holding cost and minimum acceptable price.
- Choose an action and deadline for every row.
- Review weekly and change your purchasing rules based on the causes.
Frequently asked questions
Is discounting always the answer?
No. Sometimes improving the listing or using other channels yields more.
When should I write off stock?
When expected recovery is lower than the cost of keeping it, and with your accountant's guidance.
This guide is general information. Amazon's fees, policies and program rules change and vary by marketplace, so confirm current details in Seller Central and, for tax or legal questions, with a qualified adviser.