How to Sell Slow-Moving Amazon Inventory

Everyone obsesses over the wrong Amazon metrics. Conversion rate. Click-through rate. ACOS. TACOS. Important? Sure. But they're all downstream from the metric that actually matters: Velocity. Let me explain why: Amazon's Hidden Reward System: Amazon isn't a marketplace.  It's a logistics company with a website. Their entire business model depends on inventory turnover.  The faster products move through their warehouses, the more money they make. So they built the entire platform to reward velocity: □ Fast movers get lower fees: IPI score above 500? Storage fees drop 50% □ Fast movers rank higher: The A9 algorithm weights sales velocity 3x more than conversion rate □ Fast movers get better ad placements: Amazon gives preferential treatment to products that generate cash flow When you increase velocity by 20%, here's what actually happens: → Storage fees decrease 30-40%  → Organic ranking improves 2-3 positions  → Ad costs drop 15-25% (better quality score)  → Cash flow improves 50%+ (faster capital recycling) Engineering velocity? I got you. 1. Inventory Planning  Send 30-45 days of inventory, not 90-120.  Smaller, faster shipments. 2. Pricing Strategy  Better to sell 100 units at $19 than 50 units at $24.  Volume creates momentum. 3. PPC Acceleration  First 30 days of inventory? Run ads at break-even or slight loss.  Build velocity first, profit second. 4. Promotional Cadence  Lightning deals, coupons, Subscribe & Save Use them strategically to prevent stagnation. Case Study:  Client selling yoga mats.  Decent product, brutal category. Old approach:  Conservative.  90-day inventory.  20% PPC budget.  $29.99 price point.  Results: 8 units/day. $3,400/month storage fees. Rank #47. Velocity approach:  Aggressive.  35-day inventory.  40% PPC budget.  $24.99 price point.  Results: 23 units/day. $890/month storage fees. Rank #12. Revenue increased 67%.  But profits increased 240%. Why? The hidden costs disappeared. Amazon doesn't care about your margins.  Amazon cares about movement. Align with their incentives, and the platform becomes your ally. Fight against them? You're swimming upstream with weights on. Velocity isn't just a metric. It's the entire game.

How We Added 14% to Our Clients' Profit by ONLY Changing Efficiency Targets There's ONE lever most brands aren't pulling: SKU-specific efficiency targets based on merchandising strategy. Every product has different: - Landed costs - Inventory constraints - Demand levels Yet most D2C brands apply identical efficiency targets across all SKUs. Let's look at two t-shirts with the same $50 MSRP: SKU #1 | Black T-Shirt Landed cost: $9/unit Inventory: 5,000 units Demand: HIGH Profit calculation: $50 - $9 - $28.50 = $12.50/unit → Optimal CPA target: $28.50 SKU #2 | Red T-Shirt Landed cost: $10/unit Inventory: 7,500 units Demand: LOW Profit calculation: $50 - $10 - $32.50 = $7.50/unit → Optimal CPA target: $32.50 Results over a 3-month period... Scenario 1: SKU-Specific Targets Black T-shirt: 5,000 units × $12.50 profit = $62,500 Red T-shirt: 7,500 units × $7.50 profit = $56,250 TOTAL PROFIT: $118,750 Scenario 2: Blended $30 CPA Black T-shirt: 4,200 units × ($50 - $9 - $30) = 4,200 × $11 = $46,200 Red T-shirt: 5,800 units × ($50 - $10 - $30) = 5,800 × $10 = $58,000 TOTAL PROFIT: $104,200 Unsold inventory: 800 black + 1,700 red = 2,500 units Capital tied up: $24,200 That's a 14% profit increase ($14,550) plus better inventory performance! Key insight: Accept lower margins on slow-moving products to convert inventory to cash FASTER, then reinvest in winners. This simplified example excludes: - LTV and repeat purchase value - Cash position impact - Seasonal demand fluctuations - Product category halo effects Every product in your catalog deserves its own efficiency target. Period. Here's your action plan: 1. Map your entire product catalog by profit margin, landed cost, and inventory position, cash position and 90D LTV. 2. Set aggressive CPAs on best-sellers with high margins. 3. Allow higher CPAs on slow-moving inventory to convert it back to cash. 4. Structure your ad campaigns by SKU (not product type) to control these variables. 5. Measure SKU-level CPA instead of blended account metrics. Brands who implement this approach see 10-20% profit improvements within 60 days, plus dramatically improved inventory turnover. The old way: "Our target ROAS is 2.5x." The smart way: "Our high-margin bestsellers target 3.5x while our overstocked items target 1.8x." Which approach are you using?

You need sales to get sales on Amazon. Amazon Sellers, are you struggling with low sales and high prices? Your product might be stuck in a vicious cycle. Without sales, Amazon has no reason to reward you, and consumers have no incentive to buy. Let's break this down and explore a strategy that could give your product the boost it needs. 👉 Price is key: Your current price may be too high compared to competitors 👉 Sales velocity matters: Amazon rewards products that sell well 👉 Temporary price drop: Consider a short-term sale to jumpstart sales 👉 Post-sale boost: Expect higher sales even after returning to regular pricing I recently advised a seller facing this exact dilemma. Their product was priced at $41.99, while competitors were selling similar items for around $30. The solution? A strategic Prime Day sale. Here's the plan: Drop your price dramatically for 48 hours during a major shopping event like Prime Day. For example, if you're normally at $41.99, consider a flash sale at $24.99. This temporary price drop can work wonders. If you typically sell 10 units daily, you might move 50-100 units during the sale. The real magic happens after the sale ends – your daily sales could jump to 15-20 units, even at the regular price. Why does this work? Amazon's algorithm loves products that sell well. By creating a surge in sales, you're signaling to Amazon that your product is in demand. This can lead to improved organic ranking and visibility long after the sale ends. This strategy isn't for everyone. It works best for products with some existing traction that just need a temporary jolt to break through to the next level. Always analyze your specific situation before making drastic pricing moves.

As the January sales come to a close, many retailers are looking to shift lingering stock and prepare for the new season. But what if you’re still left with a mountain of stock? How can you clear it while protecting your profit margins? Here’s some practical tips to help... ✨ Step 1: Check Your Sale Performance Start by analysing how your sale is performing. 🔍 One of the most useful tools is your cover calculation: Stock Units / Sales Units = Cover For example: 👠 Product A: 1,000 units in stock, selling 100 units per week = 10 weeks cover 👡 Product B: 50 units in stock, selling 1 unit per week = 50 weeks cover Although Product A may seem slow-moving if you want to clear it immediately, Product B is actually the bigger problem due to its higher cover. ➡️ What to Do: Stagger your discounts to encourage customers to buy the slower-moving stock. A general rule of thumb: higher cover = higher discount. Check your profitability before applying discounts. Try to ensure the new price won’t lead to a loss. ✨ Step 2: Market Your Stock Effectively Once you’ve adjusted your discounts, think about how to market the offer to your customers. There’s a simple rule for making discounts more appealing: For items under £100, highlight a percentage discount (e.g., “20% OFF!”). For items over £100, highlight a monetary discount (e.g., “SAVE £40!”). Example: 👕 A £20 T-shirt with “20% OFF!” feels more exciting than “£4 OFF!” 🪑 A £200 chair with “SAVE £40!” communicates more value than “20% OFF!” 🎨 Be Creative: ➡️ Bundle slower-moving items with popular ones at a slight discount to increase appeal. ➡️ Focus your efforts on clearing problem stock rather than discounting items that are already selling well. ✨ Step 3: Plan Ahead to Avoid Future Issues Markdowns and excess stock tie up your cash flow, so it’s crucial to factor these into your future planning. When planning subsequent seasons, ensure you: ➡️ Account for markdown activity and existing stock levels. ➡️ Adjust purchasing to avoid overstocking and building up another pile of unsold items. 📦 Need Help Managing Your Stock? You need a merchandiser! Visit the website for FREE resources or book a discovery call ☎️ www.flourishretail.com -------------------------------------------------------------------------- Hi 👋 I'm Sarah, founder of Flourish Retail, an award-winning merchandising consultancy which brings big-business expertise to retailers in a flexible, affordable way 🙌

Ever notice how some products in your store just don’t move as fast as others? They sit there, taking up space (and tying up cash), while your bestsellers fly off the shelves. It happens to every e-commerce store—but there’s a smart way to fix it. Let’s talk about inventory reduction bundling, or as I like to call it: turning slow-movers into sales drivers. There are two solid approaches: 1) Boosting weaker products Pair slow-moving items with bestsellers at a discount. This makes the bundle more attractive, encourages purchases, and helps clear out inventory while still recovering costs. 2) Clearing excess stock Combine old or excess inventory with popular products to move them faster. Not only does this free up space, but it also reduces carrying costs and introduces customers to products they might have otherwise ignored. But here’s the key: bundles only work when they make sense. Just throwing together your worst seller with a top product won’t do the trick. The value has to be obvious to the customer—otherwise, they won’t even consider it. Done right, this strategy keeps inventory fresh, increases revenue, and gives customers a great deal. And who doesn’t love that? #shopify