The holiday season provides the break-through opportunity that many retailers need to become profitable, especially if they have been operating in the red during the preceding months. Amazon retailers may find themselves wondering how to position their products and how much inventory they should make available during this busy shopping season. Here are some considerations.


    • Cut the price of old inventory – If you have products that have been languishing in the warehouse for months, now is the time to put them on sale. Slash their prices and clear them out before the new year.


    • Efficiently manage current inventory – During the holiday season, check your inventory more than usual. This will give you enough time to source additional merchandise if needed. If your inventory runs dry during the busy shopping season, you could lose profits as well as repeat business from disillusioned customers.


    • Don’t forget about January – Many sellers get so fixated on Christmas that they are left without inventory after the holidays. It can be difficult to order new inventory after the holidays when suppliers are playing catch-up. Make sure that you have enough inventory to last through January until suppliers resume their regular volumes.


    • Anticipate product returns – There is always a risk that you will end up with a glut of returned merchandise after the holidays, especially considering the FBA 60-day return policy. Talk to your suppliers about the mechanics of returning items, including unsold products.