The Manage Excess Inventory tool helps you quickly identify listings that may have excess inventory levels and review relevant information to take the appropriate action. The tool highlights factors that may be limiting sales of your products and suggests actions that could help you improve inventory performance.
Maintaining between 30 to 60 days of inventory can be an effective way to maximize in-stock performance and avoid unnecessary costs. By default, inventory is identified as potentially excess if all of the following conditions are met:
We calculate excess inventory based on your economic inputs (such as unit cost and recovery rate) and sales data (such as demand forecasts and price elasticity). The estimated excess quantity is the number of units for which the cost of holding your inventory would likely be more than the cost of taking action (such as reducing prices to increase sell through or removing excess units). This value is based on product demand and your costs (including fees, unit costs and cost of capital inputs), and estimates the level of inventory that could give you the highest return on your inventory investment.
For an FBA listing, available quantity refers to fulfillable inventory units that are available for customers to buy. It does not include products being shipped to fulfilment centres that have not yet been received, unfulfillable units (such as damaged units) or units bound to a customer order. For a seller-fulfilled listing, the total quantity is the same as the available quantity, as specified by the seller. Only available inventory is included in the excess inventory calculations.
The estimated costs you would incur if you take no action to help sell through or remove your inventory. This includes storage fees, including any long-term storage fees, and the holding cost of capital, if applicable.
You can set your own unit cost and recovery rate per SKU by selecting Customize SKU settings in the drop-down menu to make changes for individual SKUs, or by clicking the Customize SKU settings button at the top of the page and uploading these settings in bulk. You can make changes to your default settings by clicking the Inventory settings link. After making changes, please allow up to 24 hours for the changes to be reflected in your recommendations.
We only display your products on this page if your inventory has units that have been identified as excess.
Our goal is to help you easily identify potentially excess inventory and provide recommended actions aimed at helping you better manage the return on your inventory investment.
The recommended action is the default action shown in the drop-down menu to the right of each product. Recommendations are based on economic calculations specific to your business and products. You can take another action by selecting from the drop-down menu. Possible recommended actions are:
These alerts help identify listing issues that may be affecting your product visibility and sales.
In addition to the alerts, you can also view how many units of a product have been sold over the last 7, 30, 60 and 90 days by hovering over a product’s Units Sold column. This will allow you to gauge sales relative to your total inventory. If you find that you have an item that you’d like to remove from your inventory, click Create removal order from the action menu.
In your Inventory Settings, you can enter details about your inventory cost structure to help us to make better recommendations. These settings include:
Your feedback is important for helping us improve our inventory management tools. If you think that there may be an opportunity for improvement, please provide us with your feedback in one of the following ways:
The estimated number of days your current inventory supply will last based on the projected demand for your product.
The estimated number of units for which the cost of holding your inventory without taking any action is more than the cost of taking action (such as reducing prices to increase sell through or removing excess units). Default is quantity greater than 90 days of supply.
An alert that indicates that fewer buyers are purchasing the product after viewing the listing relative to other listings in the same category.
An alert that indicates that the ASIN listing has a low number of viewers compared to other ASINs in the same category.
For FBA listings, available quantity equals all units that are available for purchase by customers. For seller-fulfilled listings, total quantity is equal to the available quantity that the seller has defined.
The volume in cubic metres that the ASIN is occupying in Amazon fulfilment centres. Available units x volume per unit = cubic metres.
Category of the product for which storage limits are set. Products are categorized into one of six possible storage types: standard size, oversized, clothing, footwear, flammable or aerosol.
Sales price recommended to help you sell through your inventory based on your current inventory settings. This value may be different from the lowest price or Buy Box price. We recommend that you keep your product at this price until you have sold through your excess inventory.
If a sale is recommended, this is the estimated sale duration in days that would likely help you sell through your excess inventory.
Estimated storage costs you would incur on your inventory if no action is taken to help sell through or remove your inventory. This includes storage fees, including monthly long-term storage fees, and the holding cost of capital, if applicable.
Estimated quantity of inventory that would likely benefit from removal instead of being charged storage fees.