Amazon FBA Liquidations – New FBA disposal option

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Amazon FBA Liquidations are a new way to recover value on eligible fulfillable and unfulfillable inventory and avoid paying Long-Term Storage Fees, disposing of inventory to landfill or, Amazon add, dealing with the hassle of inventory returned to you.

The Amazon FBA Liquidations programme is invite-only and for those accepted into the programme it is now possible to create liquidation orders. If you are interested in joining the programme there is a survey to express interest.

FBA Liquidations aren’t going to recover anything near to the sale price of the stock that you listed it at, but could be a way to dispose of stock that’s otherwise unsaleable and at least recover a proportion of it’s value. Amazon will attempt to arrange a buyer for the eligible items that you submit for liquidation within 30 days of your submission. If successful, Amazon will transfer the amount that the buyer pays for these items, net of fees, to your seller account. The net recovery value will appear in your account within approximately 60 days after the shipment is marked as Completed in the Removal Order Details page in Seller Central.

Amazon FBA Liquidations recovery value calculation

Amazon will first determine the value of your inventory, evaluating several factors including:

  • Your sales history
  • The average FBA selling price on Amazon
  • The sales history of the specific ASIN

Based on contracted rates, third-party liquidators will purchase this inventory for a gross recovery value, which may vary based on contracted rates with liquidators. Programme fees will be waived for all orders submitted until the 31st of March 2021. Starting on the 1st of April 2021, Amazon will deduct a fee for each liquidation order and you will receive the net recovery value.

From the 1st of April 2021, Amazon will apply two separate fees to each item you liquidate:

  1. Per-unit fee based on size and weight (varies 25p to £3)
  2. 14% referral fee on the gross recovery value

Once eligible inventory is submitted in a liquidation order, monthly storage fees and long-term storage fees will cease to accrue for that inventory.

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