FBA Policy Update: Manage Your Unfulfillable Inventory

Introduction

Every FBA seller must understand Amazon FBA inventory removal, as significant changes have been implemented to ensure inventory efficiency across Amazon’s fulfillment network. This blog post will explain the updated policy, helping you protect your business and maintain a healthy Inventory Performance Index (IPI) score. Understanding these changes is crucial for avoiding unexpected losses and managing your stock effectively.

New Policy for Amazon FBA Inventory Removal

Amazon is tightening its rules on how long unfulfillable inventory can remain in its warehouses. The notice period for required removals has been reduced, which directly impacts your Amazon FBA inventory removal process.

Previously, sellers had more time to respond. However, when a unit becomes unfulfillable, Amazon sends a notification and gives you a 23-day grace period to act. If you do not take proactive steps before this deadline, Amazon will automatically dispose of or donate the inventory. This change is Amazon’s effort to free up storage space and reduce aged, unfulfillable inventory in its fulfilment centres.

How to Avoid Unwanted Disposal: Your Options

Fortunately, you have full control over what happens to your unfulfillable inventory. You can prevent disposal by enabling automated removal settings in your Seller Central account. Here are your main options to handle your Amazon FBA inventory removal:

• Return: You can have the inventory sent back to you or a designated third-party address. This allows you to inspect and potentially salvage the product.
• Liquidate: As an alternative, you can recover a portion of an item’s value through the Amazon FBA Liquidations program. This method allows you to recoup a small percentage of your product cost.
• Dispose: If the item has no resale value, you can request that Amazon dispose of it. Keep in mind that a per-item fee applies for both returns and disposal.
• Donate: You can also have eligible items donated to a partner charity via the FBA Donations Program. This option helps you avoid disposal fees and may offer potential tax benefits.

For more helpful information, check out our guide on how to avoid long-term storage fees.

Take Action: Update Your Settings Now

To ensure your business is not negatively impacted by this policy, you must act today. The easiest way to manage your inventory is to set up your automated unfulfillable removal settings.

Firstly, log in to your Seller Central account. Then, navigate to the Fulfillment by Amazon settings page. There, you can enable automated removals and select your preferred method: return, liquidate, or dispose. For example, if you sell high-value items, you should select the return option to protect your assets. On the other hand, a seller of low-cost goods may prefer to simply dispose of their inventory to avoid removal fees.

In addition, it is recommended that you check the FBA Inventory Required Removals page regularly. By maintaining a clean inventory and using Amazon’s tools, you will improve your Inventory Performance Index and reduce unnecessary costs.

Conclusion

In conclusion, the new Amazon FBA inventory removal policy demands a more vigilant approach to inventory management. By proactively setting up your automated removals, you can avoid unexpected disposal of your valuable stock. Therefore, take control of your inventory today and ensure your FBA business runs smoothly.