Sell on Amazon Sign in
This article applies to selling in: Germany

Manage Excess Inventory

The Manage Excess Inventory tool (sign-in required) helps you quickly identify listings that may have excess inventory 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.

Important: Manage Excess Inventory is a guide only and intended to provide you with information to help manage your inventory levels, but use of this tool should not be a substitute for your own judgment about demand for your products. Many factors may influence actual demand for your products, including price fluctuations, consumer demand shifts, and changes in competing offers for those products. Recommendations are not a guarantee of future results, and sellers remain solely responsible for determining their prices and inventory levels.

Frequently asked questions

What does it mean if a listing is identified as potentially having excess inventory?

Maintaining between 30 to 60 days of inventory can be an effective way to maximize instock performance and avoid unnecessary costs. By default, inventory is identified in this tool as potentially excess if:

  • at least one unit of inventory is more than 90 days aged, and 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); or
  • the product has over 90 days of supply.

How is estimated excess quantity calculated?

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.

What is included in the total quantity?

For an FBA listing, total quantity refers to fulfillable inventory units that are available or inbound. It does not include unfulfillable units (such as damaged units) or units bound to a customer order.

For an MFN listing, the total quantity is the same as the available quantity, as specified by the seller.

What is the estimated total storage cost?

The estimated costs you would incur if you take no action to help sell through or remove your inventory. This includes storage fees (including the Long-term Storage Fee) and the holding cost of capital, if applicable.

What if I want to use different inputs to identify potentially excess inventory?

You can set your own unit cost and recovery rate per SKU by selecting Update Product Settings in the drop-down menu. 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.

Why do I not see all my products on the Manage Excess Inventory page?

We only display your products on this page if your inventory has units that have been identified as excess.

How should I use this page to manage my potentially excess inventory?

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. In some cases, the recommendation may be to remove units from your inventory. Several factors influence our recommendations:

SKU-level alerts

  • Quality alert – Indicates that the listing may be incomplete or incorrect. Customers search and browse the Amazon catalog using specific product details. If your listing information is incomplete or incorrect, it becomes more difficult for buyers to find, evaluate, and purchase your inventory. Clicking Edit will allow you to edit the listing.
  • Low traffic – Indicates that a low number of potential buyers have seen the listings. Use the Improve Keywords feature in the actions list to optimize how your listing appears in searches. The Advertise Listing feature allows you to advertise through Sponsored Products to drive additional traffic to your listing.
  • Low conversion – Indicates that potential buyers are viewing the listing but do not follow through and purchase the product. Ensuring a high quality detail page through the Edit Listing feature and pricing competitively through Create Sale or Lower Price helps improve conversion rates. In some cases, due to low demand, we may recommend removing some of the inventory if we calculate that removal is more cost effective than incurring storage fees.

Demand

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.

Inventory Settings-

In your Inventory Settings, you can enter details about your inventory cost structure to help us to make better recommendations. These settings include:

  • Cost of purchase – The cost of your products as a percentage of their current selling price. The default value is 50%. You can also enter unit cost at the SKU-level for more accurate recommendations.
  • Cost of capital – The minimum return you want to earn on your inventory. The typical range is 0-25%. The default is 15%.
  • Recovery rate – The expected recovery as a percentage of the cost if you removed your inventory from Amazon and sold the inventory on your own. The recovery rate should refer to all of your inventory, not a single unit. For example, if there are 5 units of a SKU, and you can recover 50% on all units through liquidation, then the input should be 50%. However, if you can only recover 50% of 3 units and 0% for 2 units, the input should be 30%. The default is 30%.

How can I provide feedback about the Manage Excess Inventory page?

  • by rating the page using the "Rate page link on the Manage Excess Inventory page
  • by filling out a survey that we will send periodically to sellers using the Manage Excess Inventory beta
  • by emailing inventoryplanning@amazon.com

Glossary of terms

Estimated days of supply

The estimated number of days your current inventory supply will last based on the projected demand for your product.

Estimated excess quantity

The estimated number of units in your inventory that are in excess of the amount needed to provide either 90 days of supply or your maximum desired days of supply (if one has been specified).

Low conversion

An alert that indicates that fewer buyers are purchasing the product after viewing the listing relative to other listings in the same category.

Low traffic

An alert that indicates that the ASIN listing has a low number of viewers compared to other ASINs in the same category.

Total quantity

For FBA listings, total quantity equals all inventory that is available or inbound. For seller-fulfilled listings, total quantity is equal to the available quantity that the seller has defined.

Recommended sales price

Consider lowering your price to Recommended sales price to increase likelihood that you sell through your inventory based on your current inventory settings. This value may be different from the lowest price or Buy Box price. You can use pricing rules in seller central to help you set low prices. Consider to lower your price to the Recommended Sales price or lower until you have sold through your excess inventory.

Recommended sale duration

If a sale is recommended, this is the estimated sale duration in days that would likely help you sell through your excess inventory.

Estimated total storage cost

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 the Long-term Storage Fee) and the holding cost of capital, if applicable.

Note: These values are based on a daily snapshot of your inventory and may differ from your actual inventory quantities.

Recommended removal quantity

Estimated quantity of inventory that would likely benefit from removal instead of being charged storage fees.

Sign in to use the tool and get personalised help (desktop browser required). Sign in


Was this article helpful?
Thank you for your feedback
What can we improve? (Optional)
1000
What was helpful?
1000
Thank you again for your help!
Thank you for your feedback. If you have more questions, please Contact Us.

Reach Hundreds of Millions of Customers

Start Selling on Amazon