Amazon Outlet Program for Sellers: Everything You Need to Know
Are you an Amazon seller looking to offload excess inventory or seasonal items? The Amazon Outlet program might be just what you need.
In this post, we’ll dive into the details of this program, explaining how it works and how you can benefit from it.
What is Amazon Outlet?
Amazon Outlet is a dedicated section on the platform where sellers can list clearance items and overstock deals at discounted prices. It’s ideal for those looking to offload items that haven’t sold as quickly as expected. For buyers, it’s a treasure trove of deals on quality products. Items featured in Amazon Outlet range from new products to refurbished or open-box items, making it a valuable platform for bargain hunters seeking discounts.
The Outlet is not just a way to save money; it’s also an opportunity for sellers to improve cash flow, reduce storage costs, and make room for new inventory. Offering products at reduced prices not only attracts more customers but also helps sellers recover some of their initial costs.
How Does the Amazon Outlet Work?
The Amazon Outlet Program allows sellers to offer eligible products at discounted prices. These products are typically excess stock or slow-moving items. When sellers submit a product for an Outlet deal, Amazon reviews it to ensure it meets criteria such as customer demand, sales history, and product ratings.
Once approved, these products appear on the Amazon Outlet page, where customers can easily find them. Shoppers looking for bargains often check the Amazon Outlet deals page regularly, providing your products with more visibility and increasing the chances of a sale. This is especially helpful if your inventory levels are higher than you’d like, and you’re looking to clear stock.
Seller and Product Eligibility for Amazon Outlet
Seller Eligibility for Amazon Outlet Program:
Professional Selling Plan: You must have an active Professional Selling Plan with Amazon.
Customer Rating: Your overall customer rating on Amazon must be at least 3.5 stars.
Product Eligibility for Amazon Outlet:
Inventory Age: The product must have been in Amazon’s fulfillment centers for at least 90 days.
Inventory Quantity: You must have at least 1 unit of the product in stock.
Product Condition: The product must be in new condition.
Product Rating: The product must have a rating of at least 3 stars or no reviews.
Other Promotions: The product cannot be currently enrolled in other promotions like Lightning Deals or Subscribe & Save.
Recent Outlet Deals: The product cannot have been featured in an Outlet Deal in the past 60 days.
Sales Restrictions: The product must not be restricted for sale in your store.
Amazon Outlet Fees
While there aren’t specific fees for listing products in the Amazon Outlet Program, sellers are still responsible for the usual charges associated with selling on Amazon. These include referral fees, standard fulfillment fees, and storage fees. If your products have been in Amazon’s fulfillment centers for an extended period, you may also incur long-term storage fees. However, by participating in the Outlet Program, you can significantly reduce these storage costs since the goal is to sell the products quickly.
Before listing an item, make sure to review all the associated fees to ensure that offering a discount still makes financial sense.
How to Create an Amazon Outlet Deal?
Here’s a step-by-step guide on how to create an Amazon Outlet Deal:
Go to FBA Inventory: Navigate to the FBA Inventory page in Seller Central.
Identify Eligible Products: Look for products marked as eligible for Outlet Deals.
Create the Deal: Click the “Create Outlet Deal” button next to the eligible product.
Set the Price: Enter the discounted price for the Outlet Deal.
Review and Submit: Review the start and end dates of the deal, then submit.
Outlet Deals Strategy
To maximize the effectiveness of Amazon Outlet deals, it’s essential to develop a solid strategy. Here are some key considerations:
Product Selection: Focus on products that are overstocked, slow-moving, or nearing the end of their life cycle. These items are perfect for outlet deals as they help clear inventory and make room for new products. By targeting these products, you can effectively manage your stock and reduce storage fees.
Pricing: Set competitive prices for your outlet deals. Research your competitors and ensure your prices are lower. Remember, the deal price should be at least 20% lower than the original price to attract bargain hunters. Competitive pricing is crucial to stand out on the Amazon Outlet deals page.
Deal Duration: Determine the optimal length for your outlet deal. While Amazon Outlet deals typically last for 14 days, you can adjust the duration based on your inventory levels and sales goals. A well-timed deal can help you clear stock quickly and efficiently.
Promotion: Leverage Amazon’s advertising tools, such as Sponsored Products and Sponsored Brands, to promote your outlet deals. Increased visibility can drive more traffic to your deals, boosting sales and helping you clear excess inventory faster.
Monitoring: Continuously monitor the performance of your outlet deals. Use Amazon’s performance metrics, such as sales velocity and conversion rates, to optimize your deals. Regular monitoring allows you to adjust your strategy as needed, ensuring your outlet deals remain effective.
Checking the Status of an Outlet Deal
After submitting an outlet deal, sellers can check its status through Seller Central. Simply go to the Manage Inventory section, and you’ll find a window showing whether your deal is pending, approved, or active. This is where you can review details about your outlet deals, including the set discount and the product’s visibility on the outlet page.
It’s a good idea to keep an eye on your outlet deals and review their performance. This can help you adjust your pricing strategy if necessary or even remove products that aren’t performing as expected.
Benefits of Selling on Amazon Outlet
The Amazon Outlet Program offers several advantages for sellers. One of the primary benefits is the ability to boost sales by offering products at discounted prices, attracting more customers. Many shoppers are drawn to Amazon Outlet specifically because they know they can find quality products at reduced prices.
Another key advantage is the ability to clear out excess inventory. Slow-moving products or overstock can take up valuable space in Amazon fulfillment centers and lead to long-term storage fees. By participating in the Outlet Program and utilizing outlet promotions, sellers can move this stock quickly and avoid these additional costs.
Improving cash flow is yet another benefit. As items sell through the Outlet, you’re able to recover some of your investment, freeing up funds to restock or invest in new products. This helps businesses maintain healthy finances and avoid cash flow issues caused by unsold stock.
Measuring Success on Amazon Outlet
To measure the success of your Amazon Outlet deals, use the following metrics:
Sales Velocity: Monitor your sales velocity to ensure your outlet deals are driving sales. A high sales velocity indicates that your deals are effective in moving inventory.
Conversion Rates: Track your conversion rates to see how well your outlet deals are converting into sales. High conversion rates suggest that your pricing and promotion strategies are working.
Customer Reviews: Keep an eye on customer reviews to ensure your outlet deals are meeting customer expectations. Positive reviews can boost your seller rating and attract more buyers.
Inventory Levels: Track your inventory levels to ensure your outlet deals are effectively clearing excess inventory. This helps you manage stock more efficiently and reduce storage fees.
Cash Flow: Monitor your cash flow to ensure your outlet deals are improving your financial health. Successful outlet deals should help you recover investment and free up funds for new products.
By tracking these metrics, you can optimize your Amazon Outlet deals and improve your overall performance on the platform.
Cautions
When using Amazon Outlet, you won’t have to pay any extra fees apart from the usual fulfillment charges and sales commissions. This makes it a cost-effective way to promote your products without added expenses.
However, keep in mind that Outlet deals can overlap with other Amazon promotions. It’s a good idea to check your profit margins in advance. Also, since Outlet prices may become the lowest price, it could affect other deals like Lightning Deals or Prime Exclusive Discounts.
Conclusion
The Amazon Outlet Program provides sellers with a valuable opportunity to clear out excess inventory, reduce storage fees, and improve their cash flow. By offering outlet deals, sellers can attract bargain-hunting customers and boost sales, all while keeping their inventory levels in check. While the program does have its requirements and fees, the benefits of participating can make it an excellent option for sellers looking to move slow-moving stock.
If you have excess inventory sitting in Amazon fulfillment centers, or if you’re looking for a way to increase visibility for your products, the Amazon Outlet Program is worth considering. With careful planning and the right pricing strategy, you can take advantage of this platform to improve your sales and keep your business running smoothly.
Frequently Asked Questions
How much does it cost to participate in the Amazon Outlet Program?
There are no special fees for using the Outlet Program, but you’ll still need to pay the standard referral fees and storage fees.
How do I submit a product to Amazon Outlet?
You can submit eligible products through Seller Central by navigating to the Manage Inventory section and selecting the items you want to list in the Outlet.
What types of products can be listed in Amazon Outlet?
Products that qualify for the Outlet Program are typically overstock, slow-moving items, or clearance products. Open-box and refurbished items are also eligible.
How long will my products stay in Amazon Outlet?
Outlet deals typically run for two weeks, but you can adjust the end date depending on your stock and sales performance.
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