What is Amazon Stranded Inventory and How to Fix It?
December 22, 2022 Posted by LAURA WILSON

Amazon stranded inventory refers to physical products that are unsellable or difficult to sell on the Amazon marketplace. This can occur for a variety of reasons, such as:

  1. The products are damaged or defective: If the products are not in good condition, they may not be sellable on Amazon.
  2. The products have expired: If the products have a limited shelf life, they may become unsellable if they expire before they can be sold.
  3. The products are not in demand: If the products are not popular or there is not enough demand for them, they may not sell on Amazon.
  4. The products are not allowed on Amazon: Some products may not be allowed on Amazon due to the platform's policies or legal restrictions.

Stranded inventory can be a costly problem for sellers, as it ties up their capital and takes up storage space without generating any revenue. It's important for sellers to manage their inventory effectively and address stranded inventory issues as they arise to avoid losses and maintain profitability.

There are several ways to fix stranded inventory issues on Amazon:

  1. Sell the stranded inventory through other channels: If the products are still in good condition, but simply not selling on Amazon, you may be able to sell them through other channels such as your own website, other online marketplaces, or through wholesale or bulk sales. You may also be able to sell them at a discount to clear out your inventory.
  2. Donate the stranded inventory: If the products are still usable but cannot be sold on Amazon, consider donating them to a charitable organization. This can help you recoup some of the costs of the stranded inventory and also provide a tax deduction for your business.
  3. Return the stranded inventory to the supplier: If the products are defective or damaged, you may be able to return them to the supplier for a refund or credit. This can help you recoup some of the costs of the stranded inventory, but be sure to check the terms of your supplier agreement before doing so.
  4. Dispose of the stranded inventory: If the products are no longer usable, you may need to dispose of them in an environmentally-friendly way. This may involve recycling the materials or properly disposing of hazardous materials, depending on the nature of the products.
  5. Optimize your inventory management: To prevent stranded inventory in the future, it's important to optimize your inventory management practices. This can include things like regularly reviewing your inventory levels, forecasting demand, and setting up alerts to help you manage your inventory more effectively. You may also want to consider using tools such as inventory management software to help you keep track of your inventory and identify potential issues before they become problems.

By addressing stranded inventory issues and implementing effective inventory management practices, you can help ensure that your products are selling and you're not tying up your capital in unsellable inventory.

Laura Wilson
Content Creator