Note: You can find listings that may have overstock inventory levels from Amazon’s Manage Excess Inventory page. However, one fault in this system is that the settings apply to all inventory across the board, so if you have a great discrepancy between products, the accuracy of these calculations could be skewed. This value also estimates the most optimal inventory level at which you could get the highest return on investment. This value is based on the following factors: ![]() You can update these data within your Seller Account to help Amazon to make more accurate recommendations on how to best handle your Excess Inventory.įactors used by Amazon include the unit cost and recovery rate (the percentage of the total inventory purchase that you can recover through non-sales, cost-recovery channels such as liquidation or buy-back contract clauses), sales data (e.g., price elasticity and demand forecasts), among other economic inputs.īeyond the 90-day inventory age, the estimated quantity of excess stock refers to the number of units for which the cost of holding your excess inventory without taking action would be greater than the cost of taking action. How does Amazon calculate estimated excess quantity?Īmazon determines your number of excess units based on your sales data, cost of inventory, and turnover rate. The cost associated with holding your inventory without taking any action is higher than the cost of taking action (e.g., putting the excess units on sale to boost sell-through or removing them).The product has more than 90 days’ worth of supply.At least one unit of your inventory is more than 90 days old. ![]() ![]() Therefore, they remain in storage, facing the inevitable decline in value while accumulating unnecessary holding costs.Īmazon identifies an inventory as potentially excess if: Excess inventory is an overstocked amount of inventory that has yet to be used or sold.
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