Best Ways to Liquidate Excess Amazon Inventory Fast
Managing excess inventory is something almost every Amazon seller faces at some point. While clearing stock is a normal part of running an online retail business, it can become complicated if not handled strategically. Whether you operate through FBA or FBM, keeping slow-moving or stagnant items in storage drains cash flow, increases costs, and restricts long-term business growth. The longer these products sit untouched, the more they impact your profits through rising storage fees.
Liquidating inventory requires thoughtful planning, as no single strategy works for every seller or every product. If you are dealing with items that aren’t selling or have excess stock you want to eliminate, understanding the available liquidation options can help you recover some value and improve overall inventory health.
When Is It the Right Time to Liquidate?
Liquidation can deliver several benefits, but timing is crucial. The best moment to clear your stock is when it helps you regain control of your storage space, cash flow, and inventory performance. Two major scenarios typically indicate that it’s time to consider liquidating your products.
1. Dead Inventory That No Longer Sells
Dead inventory includes products that simply don’t sell anymore. This can happen due to low-quality items, poor demand forecasting, weak research, or natural product lifecycle expiration. Since most items eventually lose buyer interest, keeping them in storage only increases losses. Quickly clearing such stock allows you to cut costs and redirect resources to better-performing products.
2. High Storage Costs Due to Long-Term FBA Fees
If your items remain unsold in Amazon’s warehouse for an extended period, long-term storage fees can start hurting your margins. FBA works best when inventory turnover is high. When velocity drops, Amazon’s storage costs increase significantly, eating into profits. In such cases, removing and liquidating your stock is a smarter choice than letting fees stack up.
Once you remove your inventory from Amazon’s warehouse, you can explore liquidation options that help you recover value efficiently.
Should You Liquidate Immediately?
Before jumping to liquidation, it’s important to assess whether your product truly needs to be cleared or if alternative steps can revive your sales. Consider the following:
- Is the product seasonal? Seasonal items naturally slow down after peak months. You might store them for the next cycle instead of liquidating.
- Is your account missing strong social proof? Few reviews or low ratings can slow sales. Boosting reviews may help recover performance.
- Is your listing properly optimized? Using the right keywords and optimizing your content improves product visibility.
- Is your pricing competitive? Overpriced products lose to competitors. Adjusting pricing could increase conversions.
If these factors still don’t improve sales, liquidation is the next logical step.
Benefits of Liquidating Excess Inventory
For FBA sellers, the main benefit is avoiding high storage fees. Liquidation also reduces stress from holding products that bring little to no return and frees up warehouse space for newer, more profitable items. Clearing out old inventory gives you room to grow your product range and improve your business’s financial health.
What Is Amazon FBA Liquidation?
Amazon’s FBA Liquidations program helps sellers recover some value from returned or excess inventory. Instead of paying for disposal or removal, sellers can let Amazon transfer their items to contracted liquidation partners who buy inventory in bulk. The program is available to both U.S. and non-U.S. sellers who operate within the U.S. marketplace.
How the Program Works
Amazon arranges a wholesale liquidator to purchase your items. Sellers typically receive 5%–20% of the product’s average selling price. The final payout appears in Seller Central 60–90 days after the liquidation order is submitted. The payout depends on several factors including overall sales history, the performance of the ASIN, and its average selling price.
Eligibility and Fees
Amazon charges processing and referral fees once the inventory leaves the fulfillment center. Products eligible for liquidation must not include hazardous goods, recalled items, expired goods, or damaged inventory beyond acceptable reasons such as customer or carrier damage.
Creating an FBA Liquidation Order
You can create a liquidation order directly from your Seller Central inventory planning page or the Recommended Removal Report. Simply select the items, choose “Create removal order,” pick “Liquidations,” enter the quantity, and confirm. Bulk orders are also supported.
Other Liquidation Methods
If you decide not to use Amazon’s program, several other methods can help you clear out excess inventory:
Run a Giveaway
Hosting a final giveaway can draw attention to your brand, boost engagement, and help you eliminate stock quickly.
Sell on Deal or Secondary Marketplaces
Platforms like eBay, Walmart, Shopify, Facebook Marketplace, or Instagram Shopping can help you recover more value than liquidation alone. You will need to create a removal order and have the inventory shipped to your desired location.
Sell to Competitors
If your product is generic or unbranded, you may find a competitor willing to buy your stock at a reasonable rate. This requires negotiation but can help you minimize losses.
Donate to Charity
Although donations do not generate revenue, they help communities in need and prevent waste. Amazon’s FBA Donations program channels unsold products toward charitable organizations while supporting sustainability efforts.
How Liquidation Affects Your IPI Score
Excess inventory negatively impacts your Inventory Performance Index (IPI) score. By submitting a liquidation removal order, you can remove dead stock and improve your sell-through rate. Maintaining a healthy IPI score ensures better storage limits and overall inventory efficiency.
Final Thoughts
Dealing with excess inventory is normal for any business, and it doesn’t mean your Amazon store is failing. Liquidation is simply a strategic step toward maintaining a healthy cash flow and preparing for new product opportunities. By making informed decisions about when and how to clear slow-moving stock, you can strengthen your business and pave the way for long-term growth.
