Sellers who use Amazon FBA fulfillment services can now offer their overstock and clearance items on Amazon Outlet. Unlike Amazon Warehouse, where buyers can shop for deals on returns and refurbished goods, Amazon Outlet is for shopping discounted new products.
Sellers who use FBA will likely welcome the option of selling items that may be slow movers through Amazon Outlet to save on storage fees, since options for clearing inventory from FBA warehouse shelves are not inexpensive – sellers can have Amazon return FBA items at 50 cents/standard-sized item, or dispose of them at 15 cents/standard-sized item.
However, not all items are eligible to be sold through Outlet, and it changes from week to week. Amazon will determine which products are eligible for Outlet “based on customer demand and other factors.”
While there are no additional fees for selling on Amazon Outlet, obviously it comes at a cost since sellers must discount prices. Amazon explains, “The maximum deal price takes into consideration the lowest price charged by sellers offering the product in new condition.”
Amazon said selling through Outlet can help sellers increase sell-through, improve cash flow, optimize inventory levels, and reduce total storage fees on overstocked inventory. It drives customers to Outlet through direct emails and ad placements, including on Amazon’s homepage.
Sellers who participated in the beta program in the spring saw a 77% increase in unit sales, Amazon said. FBA sellers must have a Professional account and an overall rating of at least 3.5 stars to participate. Sellers can learn more by visiting the Amazon help pages.