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07/30/2022
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08/01/2022

Is Amazon's introduction of sales commission discounts good for depleting inventory?

07/30/2022
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Is Amazon's introduction of sales commission discounts good for depleting inventory?

On July 30, Amazon announced that it will offer a 25% discount on sales commissions for specific ASINs to help sellers drive excess inventory sales and improve sellers’ cash flow and sell-through rate. That is to say , the referral fee for a product selling $20 is $3.00, and a 25% discount on the referral fee means that selling $20 only requires a referral fee of $0.75.

Image source: Amazon Seller Forum

On July 26, Amazon issued an announcement about "disposal of aging inventory will be automatically cleared". Previously on March 16, Amazon also announced that it would remove sellers’ aging inventory from April 15. That time was to welcome Prime Membership Day. This time, it may also have plans to make room for the next promotion.

Image source: Amazon Seller Forum

Sellers can check the FBA inventory link indicated in the announcement to see if there are eligible ASINs that are eligible for a sales commission discount. The announcement also did not indicate when the automatic removal will be set up, and whether sellers can use this discount to consume part of the aging excess inventory. Otherwise, the seller's inventory will be automatically donated, recycled or otherwise disposed of. Although Amazon's recycling program launched in July can recycle inventory at a certain percentage of the seller's sales price, the maximum recycling price can only be recycled at 20% of the European station's sales price, and the inventory processing fee and the final transaction price of inventory recycling are also charged. commission. Sellers can also check to see if this sales commission discount includes ASINs participating in the recycling program.

Can sellers use this discount to consume some inventory and get back cash flow before Amazon automatically removes aging inventory? Seller feedback is welcome!

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