Amazon is one of the largest online marketplaces in the world, providing sellers with a platform to reach millions of customers. However, as a seller on Amazon, you may encounter an issue known as stranded inventory. In this article, we will discuss the concept of stranded inventory, its impact on your business, how to identify it, steps to resolve the issue, and preventive measures for the future.
Understanding the Concept of Stranded Inventory
Before we dive into resolving the issue, let’s first understand what stranded inventory actually means. Stranded inventory refers to products that are listed in your Amazon Seller Central account but are not available for purchase by customers. These products are essentially stuck and cannot be sold due to various reasons.
Before we begin: Every Amazon Seller needs a suite of tools for Keyword Research, Product Development, and Listing Optimization. Our top pick is Helium 10 and readers of this post can get 20% off their first 6 months by clicking the image below.
Now that we’ve defined stranded inventory, let’s take a closer look at this concept and explore why it can be a challenge for sellers.
Stranded inventory can be a frustrating issue for sellers as it not only affects their ability to generate sales but also ties up their capital in products that are not generating any revenue. It is important to identify and address stranded inventory promptly to ensure a healthy and profitable business.
Definition of Stranded Inventory
When we talk about stranded inventory, we refer to products that cannot be sold due to various issues, such as incorrect listing information, inactive listings, or discrepancies in stock availability.
Let’s delve deeper into each of these reasons to gain a comprehensive understanding of how they contribute to stranded inventory.
Reasons for Inventory Becoming Stranded
1. Inactive Listings: Sometimes, your listings may become inactive due to changes in Amazon’s guidelines or policies. As a result, your products are removed from search results, making them unavailable for purchase. This can happen if your product violates any of Amazon’s policies, such as restricted items or prohibited content.
2. Incorrect Listing Information: Inaccurate product information, such as wrong pricing, incorrect descriptions, or missing images, can lead to your products becoming stranded. Customers rely on accurate and detailed information to make purchasing decisions, and if your listings have incorrect or incomplete information, they may choose to buy from a competitor instead.
3. Stock Availability Discrepancies: If there is a mismatch in the inventory count between your actual stock and the information in your Amazon Seller Central account, your products may be flagged as stranded. This can happen if there are errors in inventory management, such as not updating the stock levels in a timely manner or failing to reconcile physical stock with the information in the system.
It is important for sellers to regularly monitor their inventory and address any potential issues that may lead to stranded inventory. By ensuring accurate listing information, actively managing stock availability, and staying updated on Amazon’s guidelines and policies, sellers can minimize the risk of their inventory becoming stranded.
In the next section, we will discuss strategies and best practices for resolving stranded inventory and getting your products back in front of potential customers.
The Impact of Stranded Inventory on Your Business
Now that you understand what stranded inventory is, let’s explore the impact it can have on your business.
Stranded inventory is not just a minor inconvenience; it can have significant financial implications for your business. When your inventory becomes stranded, it ties up your capital and prevents you from investing in new products. This lack of available funds can hinder your business growth and limit your ability to expand your product offerings.
Furthermore, when your inventory is stuck and unable to be sold, you are unable to generate sales and generate revenue. This can have a direct impact on your bottom line and profitability. The longer your inventory remains stranded, the greater the financial strain on your business.
But the financial implications don’t stop there. In addition to tying up your capital, stranded inventory can also result in additional costs. You may still incur expenses for storing the stranded inventory, such as warehouse fees or storage rental costs. These expenses can further eat into your profits and add to the financial burden caused by stranded inventory.
Effect on Seller Reputation and Rankings
Aside from the financial implications, stranded inventory can also have a detrimental effect on your seller reputation and rankings on Amazon. When your products become stranded, it can negatively impact your seller metrics, such as your order defect rate and late shipment rate.
Low sales and inactive listings can lead to lower visibility in search results, pushing your products further down the page and reducing the chances of potential customers finding and purchasing them. This decrease in visibility can result in a decrease in customer trust and interest, as customers may perceive your products as less popular or trustworthy.
As a result, your seller rankings may suffer, and you may find it more challenging to compete with other sellers in your niche. This can have long-term consequences for your business, as it may take time and effort to rebuild your reputation and regain your previous rankings.
Now that you are aware of the impact of stranded inventory, let’s move on to how you can identify it on Amazon.
Identifying Stranded Inventory on Amazon
Using Amazon Seller Central to Spot Stranded Inventory
Amazon Seller Central provides tools and reports to help you identify stranded inventory. One way to check for stranded inventory is by accessing the “Stranded Inventory” report, which provides a detailed overview of all your stranded products.
When you access the “Stranded Inventory” report, you will see a list of all the products that are currently considered stranded. This report includes important information such as the ASIN, SKU, and the reason why the product is stranded. By reviewing this report regularly, you can stay on top of any inventory issues and take appropriate action to resolve them.
Additionally, you can use the “Manage FBA Inventory” section to check if any of your Fulfilled by Amazon (FBA) products have been flagged as stranded. This section allows you to filter your inventory by various criteria, including stranded status. By selecting the “Stranded” filter, you can quickly identify any products that need attention.
Common Signs of Stranded Inventory
1. Inactive Listings: If your product listings are not appearing in search results or are marked as “inactive” in your Amazon Seller Central account, it’s a clear sign of stranded inventory.
When a product is stranded, it means that it is not available for purchase by customers. This could be due to various reasons, such as an incorrect listing, missing information, or a problem with the inventory in Amazon’s fulfillment centers. Inactive listings can significantly impact your sales and visibility on the platform, so it’s crucial to address this issue promptly.
2. Low Sales or No Sales: If you notice that certain products are not generating any sales or have a significantly lower sales volume compared to your other items, it may indicate stranded inventory.
When a product is stranded, it becomes difficult for customers to find and purchase it. As a result, the sales for that particular product may decline or even come to a halt. Monitoring your sales performance regularly can help you identify any sudden drops or inconsistencies, which could be a sign of stranded inventory.
Now that you know how to identify stranded inventory, let’s move on to the steps you can take to resolve this issue.
Resolving stranded inventory issues requires a proactive approach and careful attention to detail. Once you have identified the stranded products, you can take the following steps to address the issue:
1. Review the Reason: Start by understanding why the product is stranded. Amazon provides specific reasons for each stranded item, such as missing images, incorrect pricing, or insufficient inventory. By reviewing the reason, you can determine the necessary actions to resolve the issue.
2. Update Listings: If the reason for the stranded inventory is related to incorrect or missing information, you need to update your product listings accordingly. This may involve adding images, revising product descriptions, or adjusting pricing. Ensure that all the necessary details are accurate and complete to avoid any further issues.
3. Check Inventory Levels: If the reason for the stranded inventory is insufficient inventory, you need to check your stock levels. Make sure that you have enough inventory available to fulfill customer orders. If necessary, replenish your stock to prevent future instances of stranded inventory.
4. Contact Amazon Support: If you are unable to resolve the stranded inventory issue on your own, don’t hesitate to reach out to Amazon Seller Support for assistance. They can provide guidance and help you navigate through any complex issues that may arise.
By following these steps and regularly monitoring your inventory, you can effectively manage and resolve stranded inventory on Amazon. Remember, addressing stranded inventory promptly not only improves your sales performance but also enhances the overall customer experience on the platform.
Steps to Resolve Stranded Inventory Issues
Updating Product Listing Information
The first step to resolving stranded inventory issues is to ensure that your product listing information is accurate and up to date. Check all the details, including pricing, product descriptions, images, and stock availability, and make any necessary corrections.
Regularly monitoring your listings and promptly updating any changes can help prevent your inventory from becoming stranded in the future.
Repricing Stranded Items
If your stranded inventory is due to pricing discrepancies, consider adjusting the prices to make them more competitive. Analyze the market and competitor prices to ensure that your products are priced correctly.
Furthermore, offering promotions or discounts on stranded items can help attract customers and make them more likely to purchase the products.
Removing or Disposing of Stranded Inventory
In some cases, you may need to remove or dispose of the stranded inventory if it cannot be sold. If your inventory has expiration dates and is nearing expiration, it’s crucial to act quickly to avoid any product wastage and potential losses.
By removing or disposing of stranded inventory, you free up storage space and prevent your capital from being tied up in products that won’t generate any revenue.
Now that we’ve covered the steps to resolve stranded inventory issues, let’s explore some preventive measures you can take to avoid future instances of stranded inventory.
Preventing Future Stranded Inventory
Regular Inventory Audits
Performing regular inventory audits is essential to ensure accuracy and prevent inventory from becoming stranded. By checking your stock levels and comparing them to the information in your Amazon Seller Central account, you can identify and resolve any discrepancies promptly.
Additionally, avoiding overstocking and keeping track of your sales trends can help prevent excess inventory from becoming stranded.
Effective Inventory Management Strategies
Implementing effective inventory management strategies can help you avoid the issue of stranded inventory. This includes forecasting demand, optimizing your reorder points, and establishing safety stock levels.
Utilizing Amazon’s Inventory Management Tools
Amazon provides various inventory management tools, such as the “Manage Inventory” section in Seller Central, that can help you stay on top of your inventory. These tools allow you to easily review and update product listings, manage stock levels, and monitor sales performance.
In conclusion, stranded inventory can have a significant impact on your business, both financially and in terms of reputation. By understanding the concept of stranded inventory, identifying it early, taking the necessary steps to resolve issues, and implementing preventive measures, you can effectively manage and fix stranded inventory on Amazon, ensuring smooth operations and maximizing your sales potential.
Maximize Your Amazon Success with Your eCom Agent
Don’t let stranded inventory derail your Amazon business. With Your eCom Agent’s AI tools, you can take control and streamline your inventory management process. Our AI-driven suite is designed to help Amazon Sellers like you develop top-notch products, analyze customer feedback, and optimize your detail pages efficiently. Say goodbye to hours of manual work and embrace the power of automation. Subscribe to Your eCom Agent’s AI Tools today and transform the way you manage your Amazon inventory!