Can you sell unfulfillable inventory on Amazon? The short answer is no. Join us as we show you how to manage unsellable Amazon inventory, recoup some of your investment, and avoid Amazon storage fees.
Of all the things that could impact your Amazon business over the holiday season, poor inventory management is one of the most critical. It’s right up there with sub-par metrics and policy violations. Like them, it affects that all-important ability to sell on Amazon.
One aspect of this is handling Amazon unfulfillable inventory. After all, anything that you can’t ship to your customers is not only a source of discontent to them, but also a drain on your resources. Too many Amazon FBA unfulfillable items, and you end up paying higher storage fees and you have lower margins.
So, what can you do to tackle the issue of Amazon unfulfillable inventory? Find out in this brief unfulfillable inventory removal guide. We share the basics of spotting and handling dead stock, along with some FBA inventory management tips and a bit of news to boot.
New Removal Deadline for Unfulfillable Inventory
Last month, Amazon announced on the European seller forums that the deadline to dispose of unfulfillable FBA inventory is now 23 days, rather than the customary 30 days. As of Sep. 16, 2024, any seller who hasn’t enabled their settings for automated removal will be subject to the 23-day storage limit.
So, after the 23 days’ notice, unfulfillable FBA stock across European warehouses will be donated or disposed of. Why? This new FBA inventory required removals policy aims to make more room. The only workaround is to create manual removal orders or set up automated removal via liquidation or return.
As space is an issue for many fulfillment centers across the globe, the policy could soon be replicated across marketplaces. What then? Not much would change for sellers who keep an eye on their Amazon FBA unfulfillable items and remember these salient points:
1. What Is Unfulfillable Inventory?
Unfulfillable inventory is any item that can’t be shipped in its current state, even though the Amazon listing is active. This may be because the item is damaged, misplaced, or missing some of its parts. Or it could have been mislabeled, inaccurately listed or shipped with a discrepancy or defect of some kind.
Amazon carries out an inventory cleanup at the middle of every month, charging sellers for their slow-movers. But with unfulfillable items, there’s a risk that, on top of the monthly storage fee, you’ll also incur the cost of replacing the items if Amazon disposes of them.
2. Unfulfillable vs. Stranded Inventory
Unlike unfulfillable FBA inventory, stranded inventory doesn’t have an active or complete listing. But even without one, Amazon still charges for storing these items every month, as well as twice yearly (long-term storage fees). Also unlike Amazon FBA unfulfillable items, you can relist stranded items.
3. Why You Should Remove Unfulfillable Inventory
Good inventory management is key to selling on Amazon. Sooner or later, an FBA item with no prospect of selling will trigger a litany of troubles. It’s important to address any cases of Amazon unfulfillable inventory as soon as possible. Here are some of the most pressing problems and reasons to avoid them:
- Avoid Storage Fees. Unfulfillable items still accrue storage fees, even though they can’t be sold.
- Fine-Tune Stock Levels. A large number of unfulfillable items can warp the way you perceive your product availability and your ability to restock.
- Comply with the Rules. When you don’t remove your unfulfillable inventory on time, you fall foul of Amazon Policy and risk other issues down the line.
- Lower Opportunity Cost. Stocking unfulfillable items doesn’t just raise your storage fees, but also causes you to lose any profits you could have had from storing and selling alternative FBA items.
- Avoid Customer Complaints. It’s not unheard of for unfulfillable items to be processed as “Customer Damaged”. If relisted, they can end up being returned again.
4. Is Inventory Removal Free?
Amazon will charge a removal fee corresponding to the country where the item is stored. Local returns start at €0.46 per unit and disposing of a single unit will cost upwards of €0.61. But cross-border and oversize removal fees can run into double digits, according to the current removal fee schedule.
How to Manage and Remove Unfulfillable Inventory
Check for Unfulfillable Inventory
First things first- let’s find out if you have any items that fit the bill. Check for any notifications from Amazon. Alternatively, go to Inventory> FBA Inventory> Unfulfillable Inventory and scroll through the table. Note that items damaged by the carrier or within the warehouse can’t be removed because a refund is in order.
Opt for a Removal Method
There are several options at your disposal if you plan to remove your Amazon FBA unfulfillable items.
- Return. Request the inventory to be shipped back to you for inspection or resale elsewhere.
- Dispose. Let Amazon dispose of items to clear storage space quickly.
- Liquidate. Recover around 5-10% of the item’s value by liquidating through Amazon FBA Liquidations.
- Donate. The FBA Donations program allows unsellable items to be donated to charities. It comes with 2 benefits: the potential for tax credit and the option to download a donation certificate.
Check for Cancellations
Amazon doesn’t allow you to extend or cancel the removal order. But in the event that your return-to address is not valid, Amazon may cancel it themselves. You may be asked to confirm it and resubmit. If the problem persists, Amazon asks that you contact Selling Partner Support.
Look at the Expiration Date
As you can tell by now, it’s impossible to sell unfulfillable inventory on Amazon. This includes items that are due to expire, because Amazon will pounce on the opportunity to remove them. So, be sure to check those dates on perishable items, while also focusing on products with a long shelf life in the future.
Create a Removal Order
You can use the tool above to create a removal order. Otherwise, you can also access the FBA Inventory page and use the Edit Listing drop-down menu to remove titles from your inventory. Then enter your Return-to address or opt to Liquidate instead. More on this here.
| Note: You can also remove items in bulk or using a template, as explained in this Seller University tutorial. |
Set Up Automated Removal
You can enable Amazon to automate and streamline the removal process on your behalf. In Seller Central, access the Fulfillment by Amazon page under Settings and edit your settings for automated removal. You can then ask Amazon to return, resell, liquidate or refurbish the items, if applicable.
Key Takeaways
As shown above, it’s important to monitor your Amazon unfulfillable inventory in Seller Central regularly. After all, finding the right approach is half the battle. From then on, you can take swift action to automate removals, whether you opt for returns, disposal, donations, or liquidations.
Effectively managing unfulfillable inventory is vital if you want to maintain profitability and make sure it’s smooth sailing for your business on Amazon. With the right tools and automations, you can manage unsellable Amazon inventory efficiently, so that your costs plummet, your margins rise, and your business reaches stratospheric heights.
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments and keeps Amazon sellers up to speed.