Leverage Amazon Outlet for Your Business

2024-04-15

As an Amazon seller, finding innovative strategies to boost sales and clear inventory is crucial. Enter Amazon Outlet, a hidden gem within the vast marketplace of Amazon. This platform offers an incredible opportunity to sell overstocked and clearance items, turning potential losses into profit and freeing up valuable warehouse space. In this blog, we'll explore how you can make Amazon Outlet work for your business, maximizing sales for your overstocked products.


What is Amazon Outlet?
Amazon Outlet is a limited-time promotion event designed to enhance impression and drive traffic specifically for selected products, lasting for 14 days. Only products that are currently available for sale and have surplus inventory in the Amazon Fulfillment Center are eligible to participate. Amazon Outlet, as a promotional strategy, assists sellers in clearing overstocked products, improving cash flow and reducing total inventory storage costs. Buyers can purchase discounted items, overstocked promotional merchandise, and clearance goods at lower prices. Products participating in the Amazon Outlet promotion will offer buyers a discount of at least 20%. 

Conditions for Sellers Entering Amazon Outlet
  1. Have inventory that has been stored in the Amazon Fulfillment Center for at least 90 days. 
  2. Have at least 10 units of in-stock inventory. 
  3. Have sales record. 
  4. Be new release. 
  5. Have a product rating of at least 3 stars or no reviews. 
  6. Currently not enrolled in Subscribe & Save service. 
  7. Currently not enrolled in other promotional events (such as Lightning Deals).
  8. Have not been featured as an Amazon Outlet limited-time promotion in the past 60 days. 
  9. Not be restricted for sale in your storefront. 
  10. Comply with Amazon seller product review and pricing policies.

Please note that the Amazon Outlet limited-time promotion is currently available by invitation only, and only recommended ASINs are eligible to participate. 


How to Create an Amazon Outlet Deal?
  1. From the "Inventory" drop-down menu on the Seller Central, select "Inventory Planning" followed by the "Manage Inventory" tab.
  2. To filter for eligible inventory, click on "Create Outlet Deal" in the pull-down menu of "Recommendations".
  3. From the drop-down menu on the right side of the eligible products, click on "Create Outlet Deal".
  4. In the pop-up window, enter your price in the "Outlet Deal Price" box. Your price must not exceed the maximum promotional price.
  5. Review the start and end dates of your Outlet Deal. Then click "Submit" and wait for review.


Benefits of Selling on Amazon Outlet

  1. Inventory Clearance: Amazon Outlet is an excellent way to clear out excess, overstocked, or seasonal inventory, especially for products whose sales have declined due to changing trends.
  2. Improved Cash Flow: By selling slow-moving stock, sellers can recover funds more quickly, improving cash flow, which is vital for healthy operation and sustained growth.
  3. Reduces Storage Fees: Long-term storage fees are a challenge for Amazon FBA sellers. Clearing inventory through Amazon Outlet can effectively reduce long-term storage costs, lowering overall operational expenses.
  4. Increases Product Impression: Amazon Outlet provides an additional channel for showcasing and selling products, helping to increase visibility and attract customers looking for deals.
  5. Attracts Price-Sensitive Customers: The discounted items on Amazon Outlet attract customers looking for good deals and discounts, helping to expand the customer base and increase potential long-term customers.
  6. Enhances Brand Reputation: Offering discounted items can enhance customer goodwill towards a brand, especially among those who are price-sensitive yet desire quality products.
  7. Boosts Sales of Long-Tail Products: For long-tail products that typically have low sales volumes, Amazon Outlet can present new sales opportunities.


Consider the following lunch box set sold on Amazon Outlet as an example.


Its listed price is $29.99, and the promotional price is $14.99, with a discount of 50%.


Through the SellerSprite extension tool, we can see that the historical price of this product remained at the original listed price of $29.99 until it was lowered to $14.99 after March 13th. 



At the same time, its BSR has dropped and the daily sales have grown significantly after the discount.

What to Keep in Mind?
  1. While Amazon will still charge standard fulfillment fees and sales commissions on the participating ASINs, there are no extra fees for utilizing the Amazon Outlet promotion.
  2. Be aware that Outlet promotions may overlap with other Amazon promotions, so it's important to calculate your profits in advance.
  3. Outlet pricing can affect the lowest price, which in turn affects Lightning Deals or Prime exclusive discount prices.

Conclusion
The Amazon Outlet promotion is an ideal choice for overstocked promotional goods and clearance items. Remember, success on Amazon Outlet, like any other sales channel, requires strategy, optimization, and constant monitoring. As a promotional channel that drives impression and traffic, it is a great asset for Amazon sellers. Currently, Amazon Outlet is accessible both on desktop and mobile ends, gathering significant traffic. It effectively helps sellers increase sales and optimize inventory, making it worth a try for sellers. 
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