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How to Liquidate Inventory and Cut Down on Storage Fees

If you’re looking to get rid of inventory, liquidating it is the best way to go. But how to liquidate inventory quickly? It’s not as simple as just getting rid of everything – there are a few steps you need to take first.

From destroying the inventory to holding a sale, we’ve got all the essential information you need on how to liquidate inventory fast. So if you’re ready to say goodbye to those extra products taking up space in your store, read on for our tips on how to make it happen!

What Does Liquidating Inventory Mean?

If you’re running a small business, it’s important to keep track of your inventory. This will help you know what products you have in stock and how much inventory you need to order.

A company has several different options for selling its excess stock. It can sell its goods through its regular channels, slashing the price so much that buyers can’t refuse. Alternatively, the company can let a liquidation company buy all of its products, paying less than it would get from a regular buyer but receiving immediate payment for the goods.

When Do You Need to Liquidate Inventory?

Liquidating your inventory has many benefits, but when should you do it? Is there a right time to sell excess stocks? The best time to liquidate inventory is the time that works for you.

Two scenarios prompt a need to liquidate excess inventory.

1. Dead Inventory

Dead inventory is any stock that is no longer being sold. This can be due to a variety of reasons, such as bad products, incorrect market forecasts, or inventory mismanagement.

Almost half of your inventory will eventually die as most products have a limited lifecycle. Having a dead inventory can sap your resources.

The longer you wait to clear out your inventory, the more money you will lose. To minimize the damage, you should consider clearance strategies as soon as possible.

2. Costly Inventory

If you have unsold products that have been stored in an Amazon warehouse for a prolonged period, it may be time to consider liquidating those assets. By doing so, you can free up cash flow that may be tied up in those products and invest it elsewhere.

Remember, storing your items on Amazon is only beneficial if your items are moving fast. If your products aren’t flying off the shelves, then you’ll be charged extra for storage.

If you are faced with this situation, you should bring your inventory back to avoid paying increased storage costs. Once the inventory is back in your hands, find the most profitable way to sell it.

What are the Benefits of Liquidating Inventory?

If you are an FBA Seller, then the most obvious benefit of selling your extra stock is getting rid of the expensive monthly warehouse charges that Amazon has.

Having too much inventory can be a burden, so clearing your stock of products that aren’t selling can help you avoid having extra expenses.

Selling your inventory instead of storing it can free up space in your warehouse for newer, in-demand products, which can help to reduce waste.

What is Amazon FBA liquidation

The Fulfillment by Amazon (FBA) liquidation program is a program run by Amazon.com that allows third-party merchants to sell returned and overstock products on Amazon.

This initiative by Amazon has been extremely beneficial for sellers as it allows them to get rid of storage fees for products that are no longer selling. This is a great way to clear out your inventory and make some extra money.

The FBA Liquidations program allows you to liquidate any unsold inventory in your Amazon warehouse, making it a profitable way to clear out space.

It is an invite-only program open to sellers running their Amazon business in the US marketplace.

How to Liquidate Inventory

In an ideal situation, a business would never have to sell off its winter merchandise before spring. Instead, they would sell just enough to last through the winter season, and their customers would buy enough of the products to keep them satisfied until the following season.

But in reality, businesses get stuck with out-of-style metallic crop tops and old phone models.

While nobody wants to discount their merchandise, sometimes it is necessary to do so to clear out space in your warehouses and sell off old stock. Let’s discuss how to correctly and profitably run an inventory liquidation sale.

Quick Tips for Liquidating Inventory

Discard any products that will be replaced by newer styles by the end of the year.

When selling a product, it is better to sell it at a small loss than to sell it at a no profit.

You can get rid of your inventory by giving it away, donating it, or discarding it.

Many People Liquidate When They Should Sell

Liquidating dead inventory makes a lot of sense. But many times, you can fix the problem by selling off your inventory for cheap.

You may not know how to fix it, but that doesn’t mean you can’t sell it.

Sell for Cheap or Offer Discounts

There’s nothing like a sale to boost your business.

If you’re not comfortable reducing your price, consider offering a discount. This could help get rid of any surplus stock or unwanted items.

Increase Your PPC Budget to Drive More Sales

PPC campaigns can be a pain point for FBA sellers when it comes to drawing consistent traffic to their listings. This is because PPC campaigns can be expensive and time-consuming to set up and manage.

If you’re looking for a sales boost, consider increasing your PPC budget. More PPC can help you exit your inventory faster.

If you want your products to sell better, get more Amazon customer reviews. Having more positive reviews can help prevent stock shortages, so it’s worth taking the time to encourage customers to leave feedback.

Reviews can help you avoid having issues with your inventory because such feedback can convince people to buy your products.

Use Scarcity Marketing

Scarcity has been used in marketing and sales for a long time.

Let your customers know that a certain product will be no more once it’s sold out, and that will give them a good incentive to act now rather than wait.

Creating a sense of “scarcity” with your prospects by letting them know that there is only a limited quantity of your product available and that their “scare” of missing out on the product will motivate them to buy.

Throw a Giveaway

Who doesn’t love free stuff? Giveaways are the perfect way to get rid of products you no longer want without being emotionally attached to them. By holding enticing giveaways, you can entice your audience to stick around and continue shopping with you.

Seek Influencer Reviews

You can reduce the stress of inventory management by using social media and influencers.

Sponsored products are one of the ways influencers make money. They advertise these products to their followers, leveraging their influence.

You can reach out to influencers in your target niche and send them your product. This is a good way to get rid of excess inventory while gaining some brand visibility.

Working with an influencer is a great way to get your name out there, and it’s also a great way to get rid of the product you’re selling.

Bundle Products

Bundled products are two or more products that are sold together. This is usually done to sell more products or get rid of extra stock.

If you’re looking to get rid of some dead inventory, why not bundle it with something that’s selling really well? Your audience will be none the wiser and you’ll be able to liquidate your stock without any issues.

Leverage Deal Sites

If your product wasn’t well-received by your customer base, that doesn’t mean it would be met with the same response from another site’s customers. There’s always the chance that a different customer base might be more receptive to your product.

If you’re looking to get rid of some excess inventory, there’s no need to worry about losing all the value of your products. Sites that focus on discounts and offers would be more than happy to take over your leftover stock and sell it to their audience. This way, you can clear out what you don’t need while still getting a return on your investment.

Iterate on Your Return Policy

A product with a long or generous return period can breathe new life into a product that’s already considered “dead”. This is particularly true for products that have a shelf life or are prone to damage from shipping.

If you want to sell an expensive lifestyle product without worrying about returns, give customers enough time to use it and decide if they like it. This way, they’ll be more likely to keep it instead of returning it.

Sell to Your Competitors

When faced with liquidation, you can turn competitors into friends.

Your competitors would rather buy you out than continue to compete with you.

Your competition will be very happy to see you out of the market, so you may be able to sell your business for a good price.

Return the Inventory to the Supplier

This depends on the relationship between you and your suppliers.

If you have a good working relationship with your vendors, they may be willing to trade your products that aren’t selling well for ones that are more likely to sell. Your vendor wants your business, so they will do their best to supply you with products that will sell.

Utilize a Liquidator or Amazon Liquidation

A liquidation company is a merchant that purchases large quantities of products and then resells them in their own chain of retail stores. They typically buy products from discount retailers and sell them to general merchandisers.

While Liquidation.com offers solutions for inventory management, using their services to help with liquidating your business is a viable option.

You could either keep your liquidator external to Amazon or internally within Amazon.

Amazon has always been a company that is customer-centric and forward-thinking, so it’s no surprise that they would come up with their own liquidation solution for FBA sellers. The Amazon Liquidation program is a great way for sellers to get rid of their excess inventory, while still getting some money back for it. Plus, it’s a much simpler process than going through a third-party liquidator.

Destroy the Inventory

It’s not the most exciting option on the list, but it is a viable one.

If you want to keep the same brand for other products, this will make sure that your products won’t be changed in a way you don’t like.

If you’re willing to risk your good review rating to have a competitor use your inventory against you, go for it!

Donate the Inventory

Donating your stock could help you get rid of your inventory while still feeling good about yourself.

Although it is nice to give away products to worthy causes, not all products are suitable for this.

Try using other marketing methods (like Facebook, Google AdWords, or your website) before abandoning your marketing strategy altogether.

You could either sell your products on eBay, or partner with specialized retail arbitrage companies that are interested in buying liquidated inventory.

Liquidating Cuts Down on Long-Term Storage Fees

Long-term fees will line Jeff Bezos’ pockets, not yours.

If you keep your Amazon stock for too long, you’ll have to pay a fee to store it. This costs you money on top of the wasted space.

It can be tough letting go of inventory that isn’t selling, but it’s better than continuing to pay storage fees to Amazon. Getting rid of dead weight will save you money in the long run.

Storage fees can add up over time, so disposing of your product is often the best option.


If you’re looking to quickly get rid of inventory, liquidating it is the best way to go. But how to liquidate inventory? It’s not as simple as just getting rid of everything – there are a few steps you need to take first. From destroying the inventory to holding a sale, you have plenty of options on how to liquidate your stock fast.