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This article applies to selling in: United States

FBA Liquidations

FBA Liquidations is designed to help you recover value from excess and customer-returned inventory, avoid storage fees, and prevent the disposal of inventory.

How it works

Instead of paying to remove or dispose of excess or customer-returned FBA inventory, you can choose to use FBA Liquidations to have the inventory liquidated through a wholesale liquidator. By liquidating inventory, you recover a portion of your inventory cost (net recovery value) while avoiding the cost of monthly and long-term storage fees. The net recovery value should appear in your account within 60 days, and no later than 90 days, after your liquidation order is submitted.

By participating in this program, you agree to the FBA Liquidations program terms and conditions.

How we calculate your net recovery value

Amazon determines the average selling price (ASP) of your inventory by evaluating several factors, including:

  • Your sales history
  • The average FBA selling price on Amazon
  • The sales history of the specific ASIN

Based on contracted rates, wholesale liquidators will purchase this inventory for a gross recovery value, which is about 5% to 10% of its ASP. Amazon will then deduct fees and pay you the net recovery value.

Fees

Note: Amazon charges FBA Liquidations fees which incur when shipments leave fulfillment centers. If you submitted a liquidation order before June 24, 2021, these liquidation fees will apply if your inventory is shipped to a liquidator on or after that date.

Amazon will apply two separate fees to each item you liquidate:

  • The liquidations processing fee is per item and based on item size and weight (see Table 1).
  • The liquidations referral fee is 15% and calculated on the gross recovery value.
Note: The liquidations referral fee structure above has been updated from our prior announcement, which indicated that the fee would vary by item category.

Table 1: Processing fee

Item weight Fee
Standard-size items 0–0.5 lb $0.25
0.5–1.0 lb $0.30
1–2.0 lb $0.35
over 2.0 lb $0.40 + $0.20 per lb above first 2 lb
Oversize and special handling items* 0–1.0 lb $0.60
1.0–2.0 lb $0.70
2.0–4.0 lb $0.90
4.0–10.0 lb $1.45
over 10.0 lb $1.90 + $0.20 per lb above first 10 lb

*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.

Table 2: Example comparing recovery value for removal order options

Product category: Clothing (T-shirt)

Standard-size inventory weight: 0.2 lb

Recovery fee percentage: 15%

Key Example Liquidate Dispose Ship-to address
A Item average selling price (ASP) $20.00 $20.00 $20.00
B Contracted liquidator rate 7.5%1 - -
C = A*B Gross recovery value $1.50 - -
D = C*Fee % Liquidations referral fee (15%) $0.23 - -
E Liquidations processing fee (per item based on size and weight) $0.25 $0.32 $0.32
F = C-D-E Net recovery value $1.02 ($0.32) ($0.32)2

1May vary based on contracted rates with wholesale liquidators.

2You can continue to recover value yourself by having Amazon return your inventory to you.

Note: Once eligible inventory is submitted with a liquidation order, monthly and long-term storage fees will cease to accrue for that inventory.

Product eligibility

Eligibility is subject to legal, safety, and regulatory guidelines. Products not eligible for liquidation include:

Note: For unfulfillable inventory, only items with a reason of Customer Damaged, Carrier Damaged, or Distributor Damaged are eligible for liquidation. Items with a reason of Expired, Defective, and Warehouse Damaged are not eligible for liquidation.

Create a liquidation order

Submit inventory to be liquidated by creating a removal order. You can create a removal order from an inventory planning page or the Recommended Removal report:

To create a liquidation order, follow these steps:

  1. Open the Create Removal Order form.
    • From any inventory planning page, select one or more ASINs and then, from the Action on selected drop-down menu, choose Create removal order.
    • Or, from the Recommended Removal report, click Begin removal process.
      Note: If this option does not appear, you do not have inventory that we recommend you remove.
  2. Select Liquidations as your method of removal.
  3. Enter the amount of fulfillable or unfulfillable quantity to liquidate.
  4. Click Review. You'll be prompted to confirm your order.
    Important: Once you confirm your liquidation order, it cannot be canceled.
  5. Click Confirm.

    To create a bulk liquidation order, download a template from the Upload removal order file page to submit your request. Choose liquidate as the value for RemovalDisposition. For more information, go to Remove inventory in bulk.

    Important: If you are an Amazon Marketplace Web Service (Amazon MWS) developer, you can remove inventory in bulk by using the Flat File FBA Create Removal Feed. For more information, go to Amazon MWS Documentation.

Liquidate unfulfillable inventory automatically

You can set up automatic liquidations removals for your inventory at Amazon fulfillment centers. Automatic liquidations removals are only available for unfulfillable inventory.

To liquidate inventory automatically, follow these steps:

  1. In the Settings menu, choose Fulfillment by Amazon.
  2. Next scroll down to Automated Unfulfillable Settings
    Note: If your permissions don’t allow you to complete these navigational steps, try the following: On the Inventory tab, click Manage FBA Inventory. Click Remove Unfulfillable Inventory, and then click Auto Removal Settings.
  3. Click Edit.
  4. On the Automated Unfulfillable Settings page, choose Enable, and additional options will appear.
  5. Choose Liquidations to have unfulfillable inventory liquidated.
    Note: You have the option to enroll all unfulfillable inventory into Automated Liquidations, or you can exclude up to 200 ASINs. Enter the ASINs you would like to exclude, and separate each ASIN with a comma.

    For example: B071JM699P,B00YFTHJ9C,B086ZKCKS7

  6. To enable automated liquidations, you must choose a return or dispose preference.
  7. Your eligible unfulfillable liquidations inventory will be liquidated. If your inventory is not eligible, it will be return or disposed based on your preference.
  8. Your liquidation removal order will occur on the same schedule as your return or dispose preference:
    • Weekly (on the 8th, 15th, 22nd and 28th)
    • Twice a month (on the 5th and 20th)
    • If your preferred dispose removal schedule is immediate, your liquidations removal will occur weekly (on the 8th, 15th, 22nd and 28th).

    For more information on automatic return, dispose, and value recovery removals, go to Remove inventory automatically

Track your liquidation orders

Note: Due to COVID-19, there may be delays in these estimated timelines. However, monthly and long-term storage fees will no longer accrue upon liquidation order submission.
Estimated timeline Track status
Day 0
  • Liquidation order is submitted.
  • Monthly and long-term storage fees stop accruing.
Days 0–30
Day 30 (or before)
  • Inventory ships to one or more liquidators and is marked as Completed Qty in the Removal Order Detail report.
  • Once all inventory is marked as Completed Qty the order status changes to Completed.
  • To view the estimated recovery amount for a shipped item, open a removal order from the Removal Order Detail report and click View recovery summary.
  • If your inventory was shipped to more than one liquidator, the removal order will contain multiple shipment order IDs.
Day 60 (or after)
  • The net recovery value is available on your Payments page. Payments should appear under each shipment order ID in your account 60 days after your liquidation order is submitted.
  • There are three different payment transaction types for FBA Liquidations:
    • Liquidations: This transaction type is the standard liquidations order.
    • Liquidations Adjustment: In cases where your inventory is damaged, lost, or not suitable for liquidations, Amazon might perform a reversal of the initial payment.
    • Other: If there is a liquidation adjustment, you might be eligible for a reimbursement equivalent to the net recovery value.

Resale certificates

To view liquidator resale certificates for the liquidation orders you’ve submitted, see Tax-Exemption Certificates.

Resources

For more information on FBA Liquidations, watch the following videos on Seller University.

Frequently asked questions

Can non-US Sellers participate in the FBA Liquidations program?

Yes. The FBA Liquidations program is open to both US and non-US sellers who are selling in the US.

Who are the liquidators and what happens to my liquidated inventory?

We have contracted with wholesale liquidators who resell both Amazon-owned and FBA inventory to downstream consumers. Liquidators are contractually restricted from reselling FBA liquidated products directly on Amazon. These liquidators resell liquidated inventory through other ecommerce or brick-and-mortar channels. Liquidators cannot return liquidated inventory back to you.

Can I preview the gross and net recovery value before I create my liquidation order?

No. When you submit a liquidation order, Amazon will attempt to arrange a liquidator for this inventory. If arranged, a wholesale liquidator will purchase this inventory for a gross recovery value, which is about 5% to 10% of its ASP. Once this inventory ships to a liquidator—approximately 30 days after submitting the liquidation order—you can review the gross recovery value by opening a removal order from the Removal Order Detail report and clicking View recovery summary. Once Amazon receives payment from a liquidator—approximately 60 days after submitting the liquidation order—the net recovery value will be available on your Payments page.

Can I use the inventory I submitted for liquidation to fulfill customer orders while it is pending liquidation?

After you submit a liquidation order, there is a short window of time between submitting a liquidation order and when the inventory is moved to reserved status. During this period of time, customer orders can be fulfilled with your inventory. If your inventory is used to fulfill a customer order while liquidation is pending, you will receive the proceeds of sale rather than a liquidation payment.

How can I find payments for my liquidated inventory?

You can find payments in the Payment section of Seller Central. Payments will be listed by shipment order ID, not removal order ID. If your inventory has been shipped to multiple liquidators, you will see multiple shipment order IDs within a single removal order. To view all shipment order IDs for one removal order, open a removal order from the Removal Order Detail report, click the “View recovery summary” button and view the “Shipment Order ID” column.

Why did I receive different payment amounts for the same liquidated ASIN?

Amazon may have different contracted liquidation rates by warehouse. If you submit a liquidation order for multiple units of a single ASIN and the units are located among multiple warehouses, Amazon will attempt to process the units that provide you with the greatest recovery value first.

Does participating in FBA Liquidations affect my Inventory Performance Index (IPI) score?

IPI measures how efficient and productive you are in managing your FBA inventory, and excess inventory adversely affects your IPI score. Once you submit a removal order to FBA Liquidations, the order will show as Pending on the Removal Order Detail report. Inventory that is pending removal does not influence or adversely affect your IPI score. This is the case for other removal options as well, such as Dispose and Ship-to address. Therefore, liquidating inventory can help improve your sell-through rate by reducing excess or aged inventory and positively influence your IPI score.

Why was my liquidation order canceled?

We may cancel a liquidation order if the inventory isn't available for removal (for example, if it is part of a pending customer order). The items will display as Canceled in the Removal Order Detail report and will be returned to your inventory. Note that monthly and long-term storage fees will resume. If your order was canceled, please submit a new one.

If I liquidate inventory, will Amazon restrict when I can send inventory for this ASIN to a fulfillment center?

No. Such restrictions apply only to inventory you have returned to yourself (using the Ship-to address in Seller Central) and do not apply to liquidated ASINs. For more information about restrictions, visit FBA long-term storage fees.

What other recovery value options do I have for my excess and customer-returned inventory?

In addition to participating in the FBA Liquidations program, you can also earn recovery value for your excess inventory by enrolling it in Amazon Outlet.

Am I able to calculate tax on items liquidated through the program?

You can use Amazon's Tax calculation services to calculate tax on orders that are not destined for a Marketplace Tax Collection jurisdiction. You can see your tax calculations in the Sales Tax report in the Tax Document Library.

Can I use my standard Seller Central Tax Report to report liquidation sales?

Your Seller Central Tax Report determines which period to report your sales based on the date of cash receipt and the date of shipment. Liquidation sales will be reported in the period based on the shipment date of your items, but the sales will not appear in the report until the liquidator has transmitted payment to Amazon. To track your liquidation sales in real time, regardless of when the liquidator transmits payment, review your Removal Order Detail report.

Which item-level Product Tax Code (PTC) will be used for my liquidation order?

Your item-level PTC is assigned based on the status of the product listing at the time your item is shipped to a liquidator:

  • Active listing: If available, your item-level PTC will be used for tax calculation.
  • Inactive listing: Your item level PTC is also considered inactive and will not be used. Instead, the default PTC assigned in your Tax Settings will be used for tax calculation.

If you do not have a default PTC assigned in your Tax Settings, we will calculate tax at a zero rate using a PTC of “A_GEN_NOTAX” per the Product Tax Codes.

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