FBA Liquidations is designed to help you recover value from excess and customer-returned inventory, avoid storage fees, and prevent the disposal of inventory.
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.
Amazon determines the average selling price (ASP) of your inventory by evaluating several factors, including:
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.
Amazon will apply two separate fees to each item you liquidate:
Table 1: Processing fee
|Standard-size items||0–0.5 lb||$0.25|
|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|
|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%
|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.
Eligibility is subject to legal, safety, and regulatory guidelines. Products not eligible for liquidation include:
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:
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.
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:
For example: B071JM699P,B00YFTHJ9C,B086ZKCKS7
For more information on automatic return, dispose, and value recovery removals, go to Remove inventory automatically
|Estimated timeline||Track status|
|Day 30 (or before)||
|Day 60 (or after)||
To view liquidator resale certificates for the liquidation orders you’ve submitted, see Tax-Exemption Certificates.
For more information on FBA Liquidations, watch the following videos on Seller University.
Yes. The FBA Liquidations program is open to both US and non-US sellers who are selling in the US.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Your item-level PTC is assigned based on the status of the product listing at the time your item is shipped to a liquidator:
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.