Master Amazon FBA Inventory Removal: A Comprehensive Guide for eCommerce Sellers

Virginia Miller

August 27, 2024

In this article:

If you're an Amazon FBA seller, understanding how to remove inventory from your FBA (fulfillment by Amazon) account is crucial. Whether you need to clear out unsellable items or simply want to manage your inventory more effectively, this guide will walk you through the process step by step. By the end of this article, you'll have a clear understanding of the reasons for removing inventory, the impact it can have on your business, and the best practices for managing your Amazon FBA inventory.

A Guide to Removing Inventory from Amazon FBA

Why Remove Inventory from Amazon FBA?

As an Amazon seller, maintaining healthy inventory levels is crucial for business success. There may come a time when you need to remove products from Amazon's fulfillment centers. Here are some common reasons for removing FBA inventory:

Damaged, expired, or unsellable items taking up space
Slow-moving products not generating enough sales
Changing business focus and product selections

The Impact of FBA Inventory Removal

Removing unhealthy inventory can benefit your business by:

Freeing up storage space for more profitable products
Reducing storage fees and preventing long-term storage fees
Allowing you to focus on faster-selling inventory

However, inventory removal can also temporarily disrupt listings and sales. It may involve fees and other costs as well. Carefully weigh the pros and cons before removing products.

Step-by-Step Guide to FBA Inventory Removal

1. Identify Items for Removal

Thoroughly analyze inventory reports to pinpoint damaged, expired, and slow-moving items. Also consider upcoming business strategy changes.

2. Create a Removal Order

In Seller Central, select your removal items then click "Create Removal Order." Confirm the order details are accurate.

3. Choose a Removal Method

Decide whether to have Amazon return items to you or dispose of them. Compare costs and logistics to inform your decision.

Dealing with Unsellable FBA Inventory

To proactively address unsellable inventory:

Frequently review listings for low demand or quality issues
Monitor your stranded inventory dashboard
Consider repackaging, donations, or liquidation

Understanding FBA Removal Costs

Common inventory removal expenses include:

Amazon disposal and return shipping fees
Your own labor and transportation costs
Potential sales disruptions

Review fee details so removal costs don't surprise you. Take steps to prevent buildup of unsellable inventory.

Best Practices for FBA Inventory Management

Regularly analyze inventory reports
Maintain optimal inventory levels
Avoid long-term storage fees

Proper inventory management minimizes removals. Use data-driven analysis to optimize product mix and quantities.

Frequently Asked Questions

Why should I remove inventory from Amazon FBA?

Reasons to remove FBA inventory include eliminating unsellable or expired items, clearing out slow-moving products, and aligning with business strategy changes. This frees up storage space and reduces fees.

What are the steps for removing Amazon FBA inventory?

Key steps are identifying removal items, creating a removal order in Seller Central, choosing whether you want Amazon to return or dispose of inventory, and confirming order details.

What are some best practices for managing FBA inventory?

Best practices include regularly analyzing inventory reports, maintaining optimal inventory levels based on sales trends, and avoiding long-term storage fees by removing slow-moving inventory.

How can I identify unsellable FBA inventory I should remove?

Review listings for low demand, quality issues, customer returns and complaints. Check the stranded inventory dashboard. Inspect warehouse damage reports.

What fees and costs are involved in removing Amazon FBA inventory?

Amazon charges removal fees based on item size and weight. Other costs can include return shipping, labor, inventory disruptions, and more. Understand the fees before removing inventory.

Should I have Amazon return or dispose of inventory I'm removing?

Compare fees and logistics. If inventory is damaged beyond resale, disposal may be best. If it can be resold or salvaged, having Amazon return it to you may make more sense.

How can I avoid needing to remove excess FBA inventory?

Regularly review reports to maintain optimal levels. Forecast demand accurately. Quickly address slow-moving inventory building up. Continually analyze product mix and sales trends.