A seller friend asked me recently: "How do I use ads to clear slow-moving inventory?"

I think the better question is: "How do I minimize the cost of clearing inventory?"

Here's the framework I use. Focus on ONE metric: CPA (Cost Per Acquisition).

CPA = (Ad Spend + Discount Loss) / Orders

Example 1: You spend $100 on ads, get 1 order, and that order has $10 profit. Effective cost = $90.

Example 2: You drop price by $50, get 1 order. Effective cost = $50.

The formula: CPA = (Spend - Profit per order) / Number of orders

Here's the step-by-step process:

Step 1 — Establish your baseline cost

Calculate what it would cost to simply destroy the inventory or sell it through Amazon's Liquidation program (typically 5-20% recovery). This is your absolute ceiling. Any liquidation strategy that costs more than this is pointless.

Step 2 — Compare offsite vs onsite channels

If clearing through PPC + coupons + price cuts costs significantly more than offsite deals (Facebook groups, deal sites), go offsite. Note that offsite usually requires 50%+ discount to move volume.

Step 3 — Optimize the mix

Test different combinations of price reduction, coupon percentage, and ad spend. Track CPA for each. If costs are similar, prioritize the strategy that drives higher conversion volume — it might generate some organic sales to offset costs.

Step 4 — Test ad types for lowest CPA

This is where you think about "how to run ads for liquidation." There's no fixed formula — constantly test different ad types, bids, placement modifiers. Track CPA (or ACOS as a proxy).

Ad types that tend to lower CPA:

  1. Low-bid "scavenger" campaigns (Auto/Broad/Phrase)

    Key principle: Wider traffic match = lower bid. Auto campaigns at 5-20% of suggested bid. Manual broad at 60-80% of suggested bid. Test to find the sweet spot.

  2. SB "2+1" — two good products carrying one clearance product

    Bundle your clearance item with two strong sellers in a Sponsored Brand ad. The good products drive conversion, the clearance product gets exposure.

  3. SD — Category Targeting

    Target specific price ranges of competitors with lower ratings/higher prices. Test different segments to find lowest CPA. Use the Matched Product report to identify which ASINs convert.

  4. SD — Amazon Audience (In-Market)

    Target the most specific category for your product. Start with low bids, increase until daily budget is fully spent.

  5. SD — Views Remarketing (5-15% of budget)

    Many sellers skip remarketing because they think "they'd buy anyway." But remarketing speeds up purchase decisions and reduces uncertainty. I recommend 5-15% of total budget for remarketing during clearance.

The most important thing to remember:

Liquidation happens to every seller at some point. But the best way out of a mess is to never get into it in the first place. Watch your cash flow. Don't over-order just because a product looks promising.

Would love to hear your liquidation strategies. What's worked for you?