How to Reduce Excess Inventory on Amazon Without Damaging Profitability

Excess stock held in Amazon’s warehouses can quickly create more than just a logistical challenge. This is because storage fees start to rise, and a brand’s Inventory Performance Index (IPI) score is penalised. Furthermore, capital becomes tied up in products that are not moving. For established brands, the central challenge is to clear this inventory fast enough. We must achieve this requirement without compromising profitability or negatively affecting brand perception. The answer isn’t blanket discounting. Success comes from using Amazon’s available tools strategically, supported by a clear advertising and promotional plan.

Promotions That Work

Amazon offers several mechanisms designed to accelerate the rate of sell-through. For instance, Amazon Outlet Deals provide strong visibility by placing products within a dedicated clearance channel. In addition, Brand Tailored Promotions allow for targeted offers to specific audiences. These audiences include lapsed customers or shoppers who are new to a brand. Coupons, vouchers, Lightning Deals, and 7-Day Deals all remain effective tools. However, planning these promotional methods into a cohesive promotional calendar is more effective than applying them in a reactive manner.

Advertising With A Clear Purpose

When stock levels are high, campaigns should be restructured. Therefore, it is important to increase visibility for any overstocked SKUs. Additionally, aligning spend with seasonal peaks is crucial, and targeting competitor ASINs is also recommended. By implementing these strategies, advertising can ensure it supports inventory reduction instead of operating in isolation.

Bulk And B2B Demand

For brands that sell through Amazon Business, tiered discounts are an effective strategy. These discounts encourage customers to place larger orders, thus driving significant sales volume. Furthermore, multi-unit promotions can increase the average basket size. This moves inventory at a faster pace and allows brands greater flexibility in managing their margins.

Fixing Conversion Issues

Often, excess inventory is a symptom of weak conversion. Listings without optimised titles, compelling imagery, or strong A+ content will struggle to perform, irrespective of the price. Therefore, improving discoverability and conversion rates can be just as crucial as discounts for successfully clearing stock.

Planning Ahead

The most effective strategies are proactive ones. This means monitoring older stock, starting promotions before storage fees apply, and linking campaigns with natural buying trends. These steps help prevent too much stock from damaging performance. Excess stock does not have to result in significant losses. Instead, by using the right combination of special offers, advertising, and product page improvements, brands can sell off items efficiently while protecting profit margins.

Want to see your Amazon performance skyrocket?  Book a call with our team or email us at amazon@marketrocket.co.uk to take your brand to the next level.