Having Amazon fulfill your orders can save you a great deal of time and help you focus on other aspects of growing your Amazon business.
With Fulfillment by Amazon (FBA), you don’t need to worry about product storage, shipping, warehouses, or customer support. But there may be occasions when you have to remove inventory from Amazon. Amazon charges fees for storing products in its warehouses. Part of healthy inventory management is knowing when to remove your goods from Amazon fulfillment centers and understanding the process and costs.
You may need to pull your products from fulfillment centers for many reasons. Examples include ASIN suspension, expiration, low sales, seasonal product removal and potential problems like damages or returns that render your stock unfulfillable. Whatever the case is, you must know when and how to remove Amazon inventory from FBA centers to avoid losses when you leave stock that isn’t selling.
What is an Amazon inventory removal order?
An Amazon inventory removal order is a formal request that sellers can initiate to have their unsold or overstocked inventory removed from Amazon’s fulfillment centers. Depending on your preference, this process allows you to have your products returned to you or disposed of. Removal orders are used when inventory has been in storage for too long, resulting in higher storage fees, or when sellers want to discontinue selling a particular product.
In addition to managing storage costs, inventory removal orders can help you maintain better control over stock levels, especially during seasonal shifts or when transitioning to new product lines. Amazon provides two main options for removal: having items shipped back to you or having them destroyed by Amazon. Acting promptly with removal orders can prevent unnecessary long-term storage fees, especially when preparing for major inventory turnovers, like the holiday season.
How to manage product listings before removal
Before initiating a removal order, the first step is to manage your product listings. This involves taking the product off your storefront so customers can no longer view or purchase it. However, this does not remove the inventory from Amazon’s warehouses, meaning storage and long-term storage fees (LTSF) will still apply.
You have two options: close a listing or delete a listing. Both options ensure the product is no longer visible to buyers but serve different purposes.
Close a listing
Closing a listing changes the status of your product from active to inactive. The listing still exists in your Seller Central account. If you decide to relist the product, you can reactivate it anytime.
- Go to the “Manage Inventory” section of your Seller Central account.
- Select the product listing you want to close.
- Choose “Close listing” from the “Action on selected” dropdown menu.
Delete a listing
Deleting a listing removes it entirely from your Seller Central account and any sales history. This is useful when you’re confident you won’t be relisting the product.
- Navigate to “Manage Inventory” in Seller Central.
- Select the product you want to delete.
- Choose “Delete products and listings” from the “Action on selected” dropdown.
Once your product listings are closed or deleted, you can create an Amazon inventory removal order to manage the physical inventory.
How to create an Amazon inventory removal order
The entire process of removing inventory happens on the “manage inventory” section on Seller Central. You can remove inventory for any listing through this page by selecting the items you want to remove, clicking on the “Action” menu, and selecting “Create Removal Order” from the available options.
You can also remove orders using Amazon’s “Recommended Removal” report. This report includes the inventory for which you must pay long-term storage fees if it remains in an FBA warehouse.
Ensure your inventory meets the long-term storage condition, then click on the report. Proceed to select “Begin Removal Process,” then choose whether you want Amazon to dispose of the products (with a lesser nominal fee) or return them to your selected address (at a higher cost).
Steps for creating a removal order from the manage inventory dashboard
1. Log in to your Amazon Seller Central account: Go to the Amazon Seller Central website and log in with your seller credentials.
2. Navigate to ‘Manage Inventory’: From the dashboard, hover over the “Inventory” tab in the main menu and select “Manage Inventory” from the drop-down.
3. Select the items you want to remove: Find the products you wish to remove from Amazon’s fulfillment centers in the Manage Inventory section. Search by ASIN, SKU, or product name. Check the box next to each item you want to include in the removal order.
4. Choose ‘Create Removal Order’: Scroll to the top of the page after selecting the products. From the ‘Action on selected’ drop-down menu, choose “Create Removal Order.”
5. Select the removal method: Choose how you want to handle the inventory:
- Return to address: Have the inventory shipped back to your address or another destination.
- Dispose of inventory: This option allows Amazon to discard the items on your behalf, a common choice for damaged or unsellable inventory.
6. Enter your shipping or disposal preferences
- If you select the “Return to Address” option, you must provide the return address to which you want the inventory sent.
- If you select the “Dispose of Inventory” option, there are no further steps for shipping.
7. Review fees and confirm order: Amazon will display the costs associated with returning or disposing of the inventory. Review these fees, and if everything looks correct, click “Continue” to confirm.
8. Review the order summary: After confirming, you’ll be taken to the Order Summary page, where you can review the details of the removal order, including the estimated timeline for completion.
9. Monitor your removal order status: You can track the progress of your removal order by navigating to “Manage Orders” and selecting the “Removal Orders” section. You can see the status here, whether in progress or completed.
A removal order can take 90 days or more before Amazon successfully processes it. Expect to wait another two weeks after approval for an Amazon representative to deliver the inventory.
Note: You can only cancel a removal order if it hasn’t started processing. Once Amazon begins the removal process, cancellation is not possible. Typically, you have a few hours after placing the order to cancel, but this depends on the fulfillment center. Monitor your order status closely and act quickly if needed.
Amazon inventory removal order fees
When creating a removal order, Amazon charges fees based on the size and weight of each unit. For more details, review removal order fees in Seller Central. Amazon charges the fees using a rate card when the removal order is complete.
Return and disposal fees (per unit)
Fig. 1.0 Amazon inventory removal order fees and rate card, Amazon Seller Central
Standard-size items
- 0 to 0.5 lb: $1.04
- 0.5+ to 1.0 lb: $1.53
- 1.0+ to 2.0 lb: $2.27
- More than 2 lb: $2.89 + $1.06 per pound over 2 lb
Large, Bulky, Extra-Large and special handling items
- 0 to 1.0 lb: $3.12
- 1.0+ to 2.0 lb: $4.30
- 2.0+ to 4.0 lb: $6.36
- 4.0+ to 10.0 lb: $10.04
- More than 10.0 lb: $14.32 + $1.06 per pound over 10 lb
These fees reflect the current costs of disposing of Amazon inventory. Regularly review removal fees for updates to avoid surprises.
After removing or disposing of your inventory, you can check the associated fees through Seller Central. To do this, go to the “Payments” section and open the “Transaction View” tab. From there, filter transactions by selecting “Service Fees” and set the appropriate date range. Once you click “Update,” look for entries labeled “FBA Removal Order” under the “Product Details” section. This will display the exact costs charged for your removal orders, allowing you to track your expenses accurately.
Can you automate Amazon inventory removal orders?
Fig. 1.1 Automated unfillable settings, Amazon Seller Central
When a product is damaged or does not meet Amazon’s quality standards, it becomes unfulfillable. Amazon will notify you about unfilled products so you can place a removal order within the next 30 days. Failure to do so will give Amazon the go-ahead to dispose of it automatically.
To help you control your inventory, Amazon allows you to automate removal orders for merchandise you believe cannot be fulfilled or will attract long-term storage fees. If you automate your removal orders for the 15th day of the month (when Amazon carries out stock inventory in its warehouses), that inventory will not attract storage fees.
To automate removal orders, go to your Seller Central account, click the Fulfillment by Amazon icon from the “Settings” menu, and proceed to edit the “Automated Unfulfillable Removal Settings” and select “Return” or “Dispose.”
Select an automated schedule:
Immediately (for products you want to dispose of)
- Weekly
- Every 15 days
Enter your email address for notifications and physical address to deliver returned inventory in the designated boxes.
Things to know about Amazon inventory removal orders
Here are a few things to keep in mind regarding removal orders:
- Amazon warehouse workers treat removal orders as trash because they are trained to do so. Your inventory is only valuable to you and Amazon can return it in bad condition.
- When returning Amazon inventory, workers place it in boxes that are available at the time. In other words, they can ship your inventory in smaller or bigger boxes instead of the perfect size.
- Often, returned inventory doesn’t come with dunnage, like loose protective plastic padding for support. As a result, it is susceptible to different degrees of damage during transportation to your delivery address.
- Returns take time because they are the last shipments processed in Amazon FBA warehouses. Amazon states that removal orders take 90 days or more to process. As an Amazon FBA seller waiting for returned inventory, you’ll need great patience because you may not receive the inventory in weeks or even months.
- Be sure about your removal order before placing it because once it’s done, you can’t change your mind or reverse the process. The timing of the process is also beyond your control, so there’s nothing you can do to speed it up.
- You can’t use removal orders to send inventory to your customers or as gifts for other people. Removal orders are yours and should be returned to you, the product manufacturer, a third-party storage company, or a re-shipper.
Removal orders are a normal part of business on Amazon
Having some products you need to clear out for different reasons is normal. Sometimes, products are expired, defective or seasonal. Removal orders can help your Amazon business maintain profitability. Placing removal orders at the correct times can help prevent unnecessary spending on storage space in Amazon FBA fulfillment centers.
Opt for inventory removal manually or automatically to avoid storage fees and save time. The removal process is also relatively easy since you can control everything from your Seller Central account. Returns take time, so be patient when expecting your shipment. Also, remember that you can receive some or all of your products in extremely unsellable conditions. Carefully weigh your options and all associated costs before making a decision.
Facing issues with your Amazon inventory removal order? Don’t let the fees and complexities overwhelm you. Our Amazon problem solving experts specialize in solving seller challenges just like this. Reach out today. We’re here to help.
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