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Getting Value from Excess and Returned FBA Inventory with Amazon FBA Liquidations
As an Amazon Seller, you've likely dealt with excess or customer-returned inventory taking up precious space in Amazon's fulfillment centers. Instead of paying to remove or dispose of this inventory, Amazon's FBA Liquidations program allows you to recover some of the value of this inventory through liquidation.
How FBA Liquidations Works
Through the FBA Liquidations program, Amazon will work with contracted liquidators to sell your excess or customer-returned inventory in bulk. The liquidators will purchase this inventory for a "gross recovery value" which is typically 5-10% of the product's original value. Amazon will then deduct processing and referral fees, and pay you the "net recovery value" - which should hit your account within 90 days of submitting the order.
This allows you to:
- Recover some value from excess or returned inventory
- Avoid monthly storage fees and aged inventory surcharges on this inventory
- Clear out space in Amazon's fulfillment centers for faster-moving products
Eligibility & Fees
Most standard-size and oversize FBA inventory is eligible for the FBA Liquidations program, with a few exceptions:
- Dangerous goods/hazardous materials
- Recalled products
- Some restricted categories like face masks and jewelry
Amazon charges two fees for liquidating inventory:
- A per-item processing fee based on the item's size and weight
- A 15% referral fee on the gross recovery value
For example, a 0.2 lb wireless phone case with an average selling price of $20 could have a net recovery value of around $1 after fees.
Creating a Liquidation Order
You can create a liquidation order directly from various inventory management pages in Seller Central, such as Manage Excess Inventory or the Recommended Removal report.
Once you submit the order, your monthly storage fees and aged inventory surcharges will stop accruing. The inventory will then ship to a liquidator within 30 days, and you should see the net recovery value in your payments within 60-90 days.
Tracking and Troubleshooting Liquidation Orders
You can track the status of your liquidation order in Seller Central. The order will show as "Pending" until the inventory ships, and then "Completed" once all items have been sent to the liquidator.
If you run into any errors or issues with your order, this help page has a troubleshooting guide for common error messages.
The FBA Liquidations program provides a valuable way for Amazon sellers to recover value from excess or returned inventory, while also freeing up space in Amazon's fulfillment network. By understanding how the program works and following the steps to create a liquidation order, you can make the most of this tool to improve your inventory management. Let me know in the comments below if you've used this program in the past!
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