PalletHub Case Study
How a tech distributor leveraged XcessFlow's FBA/WFS auto-removal and management services for optimal liquidation
PalletHub: FBA/WFS Auto-Removal & Strategic Liquidation
Company Background
PalletHub is a midsize distributor of consumer electronics, computer components, and accessories. Founded in 2010, they've built a reputation for reliable distribution to retailers and e-commerce platforms across North America. With annual revenue of approximately $25 million, they operate from a 60,000 sq. ft. warehouse facility and employ a team of 48 staff members.
The Challenge
Excess FBA/WFS Inventory: Over $850,000 in slow-moving inventory across Amazon and Walmart fulfillment centers
Mounting Storage Fees: Monthly marketplace storage fees exceeding $18,000 and rapidly increasing
Removal Logistics: No internal system to handle FBA/WFS removal orders or efficient liquidation
Capital Pressure: Urgent need to convert stagnant inventory to working capital for new product lines
Approach & Solutions
XcessFlow implemented a comprehensive FBA/WFS inventory management and liquidation program tailored to PalletHub's needs:
Automated Removal System
We set up an automated removal process that intelligently identified and removed slow-moving inventory from Amazon and Walmart fulfillment centers before storage fees escalated.
Direct-to-Liquidation Pipeline
Removed inventory was sent directly to XcessFlow's liquidation facilities, eliminating the need for PalletHub to handle, store, or process the returned merchandise.
Multi-Channel Liquidation
Our team managed the entire liquidation process, distributing inventory across specialized B2B channels, online marketplaces, and wholesale buyers to maximize recovery value.
Continuous Management
We implemented ongoing monitoring and management of all FBA/WFS inventory, with automated alerts and recommendations for future removal or repositioning decisions.
Results
Recovered from FBA/WFS inventory
Average recovery rate on original cost
Monthly marketplace fee savings
Additional Benefits
- Improved IPI and seller health metrics on both Amazon and Walmart platforms
- Freed up capital for investment in higher-velocity, more profitable inventory
- Zero operational burden with XcessFlow handling all removal and liquidation logistics
- Detailed analytics providing insights into product performance and liquidation outcomes
"XcessFlow's auto-removal and liquidation service completely transformed our marketplace inventory management. The fully managed process eliminated all the headaches of dealing with removal orders, storage fees, and liquidation channels. Not only did we recover significant value from stagnant inventory, but we've also implemented a sustainable system that prevents inventory problems before they start."
Long-Term Impact
The XcessFlow management system created lasting operational improvements for PalletHub's marketplace business:
By implementing continuous monitoring and automated removal workflows, PalletHub has maintained optimal inventory levels across all marketplace channels. The automated system removes underperforming inventory before long-term storage fees apply, sending it directly to XcessFlow's liquidation pipeline.
This proactive approach has improved their overall marketplace performance metrics, resulting in better placement and visibility for their listings. PalletHub estimates that the combination of fee savings, improved performance, and capital efficiency has increased their marketplace profitability by 26%.
Key Takeaways
Automated FBA/WFS inventory removal prevents fee accumulation and improves marketplace metrics
Direct-to-liquidation pathways eliminate operational burden and warehouse space requirements
Professional management of the liquidation process yields significantly higher recovery rates
Continuous monitoring and automated systems prevent future inventory stagnation