How do I review an Amazon seller’s aged or slow-moving stock?

Begin with the report: units, age, cost and expected selling time for each product. Sort by age and value. A handful of old, expensive lines tell a different story from many small lines that are slightly slow. Ask what the seller has already tried, such as price cuts, bundles or removal.

Next, look at the cost of waiting. Warehouses charge to hold stock, and long-held items may attract higher charges. Ask for recent invoices and any pending fees. Find out how old units are treated in the books, and ask your accountant whether they are valued above what they can realistically fetch.

Then consider the options. Selling at a discount, returning items to a supplier, donating or destroying are all choices with different costs. Ask which the seller prefers, and why. If the sale includes inventory, discuss with your lawyer and accountant how aged stock will be counted and priced in the agreement. Check also whether slow items are tied to seasons, expiry or products that may be discontinued. Ask whether any slow stock is linked to a product that attracted complaints, since that stock may be hard to sell at any price.

Key takeaways

• Ask for an age report by product and compare it with a full year of sales.
• Add up storage charges and removal costs for slow lines.
• Agree how aged stock is counted and priced in the purchase agreement.
• Check whether slow stock is slow because of complaints or quality concerns.