Amazon FBA (Fulfillment by Amazon) has allowed sellers to scale their business exponentially. With Amazon taking care of storage and shipping, FBA sellers don’t need their own warehouses. Sellers can even save on customer support! But, these benefits do not come free.
If you’re an FBA member, you’ll have to pay a monthly fee. That’s not all. You’ll also have to pay Amazon for all your products in its warehouses. If your inventory has been at an Amazon fulfillment center for over a year, you’ll also have to pay long-term storage fees.
In short, if your product isn’t selling, you’ll be bleeding money.
For items stored for over a year, Amazon charges the seller a fee of $6.90 per cubic foot of storage used, or $0.15 per product (whichever is greater). This fee is deducted every month. This can quickly add up.
So, if a product isn’t flying off the shelves, it might be worthwhile to get rid of the unused inventory. How do you do that? It’s actually quite simple. All you need to do is create a removal order on Amazon. We’ll walk you through everything you need to do to remove inventory from Amazon.
If you’re recalling or disposing of your inventory from fulfillment centers, it’s a good idea to remove the related product listing. You have two options:
You can follow these steps to close or delete your listings:
If you want to relist an item that has been closed or removed, you can follow these steps:
If the listing was deleted over 24 hours ago, you cannot relist the product. The listing has to be manually added again.
Once you have closed or deleted the relevant product listings, you can move on to removing your inventory from Amazon fulfillment centers.
If you want to learn more about the various fees associated with Amazon FBA, watch this detailed guide!
Why would you want to remove inventory from Amazon FBA centers?
Even if a product is not subject to long-term storage fees, it still costs you money if it’s at an Amazon warehouse. If your product sales can’t cover these costs, it’s advisable to take down the listing and remove the product from FBA centers.
Here’s how you can do it.
1. Create a removal order
There are two ways to create a removal order. You can do this from the “Manage Inventory” page or from the “Recommended Removal” report. The recommended removal report only includes inventory that will be subject to long-term storage fees. Through the Manage Inventory page, you can remove the inventory for any listing. Here’s how you can remove inventory using either method: On the “Manage Inventory” page, select the relevant items. Select the “Action” drop-down list and pick the “Create Removal Order.”
Once you have begun the removal process, you have three choices.
A product under a removal order cannot be used to fulfill customer orders. It cannot be shipped to any other fulfillment center either.
2. Add address and order ID
3. Specify ordered SKUs/units
If you want to add more items to this list, you can search for the product using its title, ASIN, FNSKU, or MSKU. Add the relevant details into the “Search and Add Items” box and hit Search. Choose the products to be removed, and click the “Add Selected” button.
4. Add quantities to be removed
Now you need to mention the number of fulfillable and unfulfillable items to be removed. This quantity cannot be greater than the total quantity available for removal. Once you’ve done that, you need to review the total inventory — both available and unavailable for removal.
5. Review removal order
After you’ve added all the necessary details, you need to review your removal order. Check the order ID, method of removal, ship-to address, and the details of the selected items for removal. If you need to change contact details or return address, you just need to select the “Change” option. You can also see how much the order will cost you under the “Estimated Fees” option.
6. Click confirm
After review, you have the option to confirm the removal order or cancel it. Usually, the order is processed within 10 to 14 days after you confirm your order. However, it can take up to 30 business days, especially during the peak removal times, and the holiday season.
Once the removal order has been submitted, the carrier may try to contact you to organize a specific delivery time. If you are unavailable or cannot accept the delivery, Amazon assumes that the ship-to-address is incorrect. If this happens, the items will be considered as ‘abandoned.’ The products can then be disposed of without any reimbursements or further notice.
Wondering how you can make the most out of the holiday season? SellerApp’s Customer Success Head, Ankitha Nagaraj explains how to supercharge your sales while avoiding common mistakes.
|SIZE||Shipping Weight||Removal Fee (Per Unit)|
|0 to 0.5 lb||$0.25|
|0.5+ to 1.0 lb||$0.30 |
|1.0+ to 2.0 lb||$0.35 |
More than 2 lb
More than 2 lb
Oversize/ special handling items
0 to 1.0 lb
1.0+ to 2.0 lb
2.0+ to 4.0 lb
4.0+ to 10.0 lb
More than 10.0 lb
$1.90 + $0.20/lb above first 10 lb
For standard-sized items: Items weighing under 1 lb are rounded up to the nearest 0.1 lb. For items weighing over 1 lb, shipping weight is calculated by rounding up to the nearest whole pound.
Special handling items may include apparel, shoes, watches, jewelry, or dangerous goods.
A removal order can be canceled only if its status is either “Pending” or “Planning.” If your removal order is in the “Processing” status, it cannot be canceled.
Here’s what you need to do to cancel the order:
You can also automate the removal process for unfulfillable items and products subject to long-term storage fees. If you set up automated removals by the 15th of each month, that inventory won’t be charged storage fees. This is because Amazon takes stock of inventory on warehouses on the 15th of every month.
What is an unfulfillable product?
Whenever Amazon deems that a product is not in a sellable condition, its status is changed to Unfulfillable. Amazon notifies you whenever a product becomes unsellable. If you do not create a removal order for unsellable inventory within 30 days of Amazon notification, it is likely to be automatically disposed of.
You can follow these steps to automatically remove unfulfillable products from your inventory.
Similarly, you can also automate removal orders for inventory subject to long-term storage fees. Just navigate to “Automated Long-Term Storage Removals Settings” on the “Fulfillment by Amazon Settings” page. In this case, you also have the option to set the price range of the products you want to remove. In the Disposal/Return settings section, do one or both of the following:
Items that cost more or less than the price range will remain in your inventory and will be charged the long-term storage fee. Items within the designated price range will be marked for removal.
You will be charged for removal only after your inventory is disposed of or shipped. You can verify the costs related to your removal order on the “Payments” report.
In order to keep tabs on how much removal orders cost you, follow these steps:
Sometimes, taking a product off the shelves is the right call. The reasons may vary. It could be a seasonal product that you want to take off the shelf. It could be a product that just didn’t sell well. Maybe you want to avoid long-term storage fees. Whatever the reason is, Amazon has made the process quick and easy.
You can also automate the removal process for unfulfillable products, and inventory subject to long-term storage fees. This is an easy way to manage your inventory on a regular basis. Plus, it can save you a lot of time and money in the long run.
Effective inventory management is every seller’s secret to maintaining a healthy profit margin.
Do you have any questions about inventory management with Amazon FBA? Let us know in the comments section below.
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