Amazon sellers, what to do with items that are not selling? The storage fees on Amazon are very high…
I did yard sale and flea market last week. I sold very little of my Amazon discards and for the time I put in probably could have made more money throwing it all in the trash and spending that time sourcing. So consider the value of your time.
I have the same problem and I don’t have a good solution! I did hear one person say they traded some of their items at some kind of local thrift store that gives store credit.
I thought about trading my overstock items but I don’t know what I have to do in relation to tax.
Probably record it as a “loss”. For the flea market and yard sales I just wrote it down to count it as sales just as if it had sold on Amazon or eBay.
If you return those items then it should add it back to where it had originally been debited from (COG) so that is how I do it. As far as inventory labs, I don’t have it so I’m not sure but I think you are on the right track. My understanding is to make an expense category called unsellable inventory (just like you have an expense category for shipping supplies or gas mileage).
I subtract the cost of the item from there and add the price of the item back into the category where it previously was accounted for which was COGS. Then I throw away the item or do whatever I want with it.
If you want to get a tax write off for donating it to charity I am unsure of how it affects what we have already discussed…
In any case, this is just how I do it but I’m not a bookkeeper or a CPA, so you’d better consult with one.