Understanding inventory ageing on Amazon is crucial for maintaining a healthy business, especially when you're part of the Amazon Brand Registry program. Inventory ageing refers to how long your products have been sitting in Amazon's warehouses. When items stay too long without selling, they become aged inventory. This affects both your storage costs and your overall business performance. For sellers enrolled in the Amazon Brand Registry, keeping track of inventory age is particularly important as it helps maintain brand value and market presence.
Storage fees
Storage fees increase significantly for items that remain in Amazon's warehouses for extended periods. After 365 days, you'll face much higher long-term storage fees. These extra costs can quickly eat into your profits and affect your business's cash flow. By understanding and managing inventory ageing, you can avoid unnecessary expenses and keep your business profitable.
Sales velocity and ranking
Products that move quickly through Amazon's warehouses show good sales velocity.
- Fast-moving inventory helps maintain better search rankings
- Quick turnover indicates strong market demand
- Regular sales activity keeps your listings active and visible
- Fresh inventory often leads to better customer satisfaction
Managing seasonal products
Seasonal items require special attention to inventory ageing. Winter coats shouldn't sit in warehouses during summer months, and beach accessories shouldn't take up space in winter.
- Historical sales data
- Seasonal trends
- Storage cost calculations
- Lead times for restocking
Best practices for inventory management
Taking control of your inventory age starts with good management practices.
- Regular inventory health checks
- Setting reorder points based on sales velocity
- Using Amazon's inventory reports effectively
- Planning promotions for slower-moving items
Amazon Brand Registry advantage
Using the Amazon Brand Registry gives you more tools to manage your inventory efficiently. You can access detailed analytics and reports that help you make better inventory decisions. This program enables you to maintain brand value while managing stock levels efficiently.
Impact on cash flow
Money tied up in aged inventory can't be used for other business needs. Fresh inventory turns into cash faster, while aged inventory:
- Ties up working capital
- Increases storage costs
- May require discounting to sell
- Affects business growth opportunities
Prevent ageing inventory
Prevention is better than cure when it comes to inventory ageing.
- Start with smaller test orders for new products
- Monitor sales trends weekly
- Adjust pricing before items age too much
- Use promotional tools strategically
Role of forecasting
Good forecasting helps prevent inventory ageing issues.
- Past sales performance
- Market trends
- Seasonal factors
- Competition levels
When to take action
Don't wait until inventory becomes a problem.
- Slowing sales velocity
- Increasing storage fees
- Declining search rankings
- Rising inventory age reports
Managing inventory ageing effectively through Amazon Brand Registry and other tools helps ensure long-term success. Keep your inventory fresh and moving to maintain profitability and growth. Remember that good inventory management is an ongoing process that requires regular attention and adjustments.
Inventory ageing on Amazon directly impacts your business success. By staying active in the Amazon Brand Registry and following good inventory management practices, you can keep your products moving and your business growing. Take control of your inventory age now to ensure a healthier, more profitable future for your Amazon business.
