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With Inventories Piling Up, What Should Sellers Do About The Post-holiday Syndrome?
Kinghood International Logistics Inc | Updated: Jan 03, 2019

At the end of the year-end peak season, overseas warehousing and inventory overstocking of sellers are still in a severe form. Severe inventory overstocking and excess storage fees make some sellers suffering from "post-holiday syndrome" complain bitterly.Many novice sellers stocked up a lot of goods in the FBA warehouse during the peak season, in order to guarantee the delivery after the increase of orders. As a result, the storage was restricted due to unsalable goods.

So what are storage restrictions?Warehousing restriction means that the seller can store the total inventory of amazon logistics center. Amazon will automatically evaluate the warehousing restriction on a monthly basis to determine whether the seller's warehousing needs to be adjusted.When calculating the current inventory level of the seller, amazon often takes into account the following factors: the seller's inventory in amazon logistics center, the inventory that has been delivered and will be put into storage soon, and any removal request that has been processed.

How do sellers know their inventories are constrained?If the warehouse is restricted, a storage monitor will appear on multiple locations of your seller's account (including on your "Shipping Queue" Shipping management page), and if your warehouse is not restricted, the warehouse monitor will not appear.

In addition, the horizontal bar indicator is divided into three colors, which respectively represent how far the seller is from the maximum inventory limit.Green means your inventory level is 75% below the limit;Yellow indicates that your inventory level is between 75% and 95% of the limit;Red indicates that your inventory level is above 90% of the limit.

If the goods you send exceed the quantity allowed by amazon's inventory limit, the extra stock you receive will be rejected by amazon.After the peak season, it is inevitable to encounter the phenomenon of limited inventory, limited storage capacity merchants where to go?Here are three ways to reduce FBA inventory.

Sell some of your current stock.

Selling goods is the best way to solve the storage restrictions. Try to promote your products from various channels and increase sales.Sellers can also try bundling, which is a good way to boost sales if a product that is slow to sell can be combined with a product that sells well.For example, your mouse sales are very good, but the mouse pad has become a unmarketable product, you can try to combine sales, sales of the mouse pad will also drive the sales.

2. Request FBA to return part of your inventory to you by creating a removal order.

Take the goods out of amazon's warehouse and the inventory will naturally fall.Sellers can return the goods directly to jinhongya's overseas warehouse.The storage cost of our overseas warehouse is relatively cheap, and some products can help sellers re-label and return to amazon warehouse for continued sales.Some of the remaining products can be stored directly in overseas warehouses.Sellers can turn their products into spontaneous goods. When there is an order, they can directly send it from overseas warehouse, which is also delivered in the United States. It has no impact on the shopping experience of consumers.

For sellers who sell through multiple channels, such as those who promote their products through eBay, wish, aliexpress and other platforms, they can sell their products from other platforms.Customer orders can also be directly from the overseas warehouse on behalf of a shipment.

3. Request FBA to dispose of part of your inventory by creating the inventory removal request.

For the sales volume of the product is really not good, you can ask amazon to discard the goods.But amazon does this for a fee.Sellers can entrust the disposal of abandoned goods to jinhongya, and our company can return the goods to China on behalf of some domestic products with market.For the goods that are not cost-effective to return to China, we can also transfer them to our company for abandonment and destruction service, which will be much cheaper than amazon's operation.

Therefore, sellers who are not optimistic about commodity sales should avoid blindly stocking up. They should balance the relationship among supply, purchase and sales in an all-round way, make the best use of cash flow to control the transportation of logistics in peak season and the extra expenses of back-end storage.

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