How To Flip on Amazon in 2024 (Ultimate Guide for FBA Sellers)
1 February 2024
How to Change Category on Amazon Listing
1 February 2024Are you looking to optimize your Amazon FBA business and save on storage fees?
Removing inventory from Amazon FBA is a smart move that can help you streamline your e-commerce strategy.
Whether you’re discontinuing a product, reducing storage costs, or improving inventory performance, the process of removing inventory can be straightforward when you follow the right steps.
Creating a removal order through Amazon Seller Central is the key to successfully removing inventory from Amazon FBA.
You’ll have the option to choose the method of removal that suits your needs, whether it’s returning the inventory to yourself, disposing of it, or liquidating it.
By taking control of your inventory, you can make more informed decisions and optimize your business operations.
So, let’s dive into the step-by-step guide on how to remove inventory from Amazon FBA and start optimizing your business today!
Key Takeaways:
- Removing inventory from Amazon FBA can help optimize your business and save on storage fees.
- Common reasons to remove inventory include discontinuing a product, reducing storage costs, and improving inventory performance.
- Creating a removal order through Amazon Seller Central is the first step in the process.
- Choose the method of removal that suits your needs, such as returning the inventory, disposing of it, or liquidating it.
- Following a step-by-step guide can help ensure a smooth and efficient removal experience.
Reasons to Remove Inventory from Amazon FBA
If you’re using Amazon FBA, there are various reasons why you might need to remove inventory from your account. Understanding these reasons can help you optimize your e-commerce strategy and streamline your operations.
1. Stopping Sales of a Product
There may come a time when you decide to discontinue a particular product. It could be due to low demand, outdated technology, or a shift in your business priorities.
Removing the inventory from Amazon FBA allows you to halt sales and focus on more profitable ventures.
2. Replacing with an Improved Version
As your business grows, you may develop an upgraded version of an existing product. By removing the old inventory, you can make room for the new and improved version.
This ensures that customers have access to the latest and best offerings from your brand.
3. Switching from FBA to FBM
While Amazon FBA offers convenience and fulfillment services, some sellers may choose to switch to Amazon FBM (Fulfilled by Merchant) for various reasons.
This could be due to cost concerns, the need for more control over packaging and shipping, or specific item restrictions. Removing inventory from FBA allows you to transition smoothly to FBM.
4. Reducing Storage Fees or Long-Term Storage Fees
Inventory storage fees can be a significant expense for sellers. If you have excess stock or products that are slow-moving, removing them from Amazon FBA can help reduce storage fees.
Additionally, by avoiding long-term storage fees for items stored for over 365 days, you can save on costs and free up space for more profitable products.
5. Improving the Inventory Performance Index (IPI) Score
Amazon calculates the Inventory Performance Index (IPI) score based on factors such as excess inventory, sell-through rates, and stranded inventory.
If your IPI score is below the required threshold, it can negatively impact your Amazon FBA account. Removing slow-selling or underperforming inventory can help improve your IPI score and enhance your overall account health.
6. Removing Unfulfillable Units
Unfulfillable units are items that cannot be sold due to various reasons, such as damage, expiration, or missing components.
Keeping unfulfillable units in your Amazon FBA inventory can lead to storage fees and potential account health issues.
Removing these unfulfillable units ensures that you’re not paying unnecessary fees and maintains a healthy account status.
Removing inventory from Amazon FBA offers numerous benefits for sellers, including cost savings, improved operational efficiency, and maintaining a healthy account.
Consider these reasons and make informed decisions to optimize your business on the Amazon platform.
| Reasons to Remove Inventory from Amazon FBA |
|---|
| Stopping sales of a product |
| Replacing with an improved version |
| Switching from FBA to FBM |
| Reducing storage fees or long-term storage fees |
| Improving the Inventory Performance Index (IPI) score |
| Removing unfulfillable units |
How to Create a Removal Order on Amazon FBA
To remove inventory from Amazon FBA, you need to create a removal order. Follow these steps to successfully create a removal order on Amazon FBA:
- Access Amazon Seller Central and navigate to the Manage FBA Inventory section.
- Select the listing you want to remove inventory from.
- Click on the Create removal order option.
- Choose the method of removal:
- Liquidation: Sell your inventory to wholesale liquidators.
- Return to address: Have Amazon send the inventory back to you or your team.
- Disposal: Have Amazon completely get rid of the inventory.
Provide the necessary details, including the quantity of fulfillable and unfulfillable units to be removed. Review the order and confirm it before finalizing the removal process.
Here is an example of what the removal order creation process looks like:
| Step | Instructions |
|---|---|
| 1 | Access Amazon Seller Central. |
| 2 | Navigate to the Manage FBA Inventory section. |
| 3 | Select the listing you want to remove inventory from. |
| 4 | Click on the Create removal order option. |
| 5 | Choose the method of removal: liquidation, return to address, or disposal. |
| 6 | Provide the details, including the quantity of fulfillable and unfulfillable units. |
| 7 | Review and confirm the removal order. |
Choosing the Method of Removal
When removing inventory from Amazon FBA, it’s important to select the appropriate method of removal.
You have three options: liquidation, return to address, or disposal. Consider the condition of your units and your specific needs to make the best choice for your inventory.
Liquidation
If you opt for liquidation, you can sell your inventory to wholesale liquidators. This allows you to recoup some of your costs and quickly move excess or discontinued products off your hands.
Liquidation can be a great option if you have a large quantity of inventory that you want to sell in bulk and generate some revenue.
Return to Address
The return to address method involves sending the inventory back to yourself or your team.
Amazon will handle the shipping process, making it a convenient option if you want to reassess your inventory before deciding on the next steps.
This method is suitable if you plan to relaunch the product in the future or need to make adjustments or improvements to the inventory.
Disposal
If you no longer have any use for your inventory, disposal is an option provided by Amazon.
This means that Amazon will completely get rid of the inventory on your behalf. Disposal is a suitable method if your inventory is damaged, expired, or simply not in a sellable condition.
It allows you to clear out unprofitable or unwanted stock efficiently.
Consider the specific characteristics of your inventory, such as its condition and market demand, when choosing the method of removal.
You want to ensure that the chosen method aligns with your business goals and helps optimize your inventory management.
Now that you understand the various options available, you can proceed with the removal process on Amazon FBA.
Ensuring Correct Return-to Address
If you choose the return-to address method of removal for your Amazon FBA inventory, it is crucial to ensure that the return address is correct.
This address cannot be edited once the removal order is created.
Make sure to provide a physical street address in your seller’s account and specify a designated recipient who can easily be contacted.
Amazon will call this recipient to arrange delivery when the removal order is picked up from their fulfillment centers.
Here’s a simple checklist to ensure the accuracy of your return-to address:
- Verify that your seller’s account includes your correct physical street address.
- Double-check the recipient’s contact information, including their name, phone number, and email address.
- Ensure that the designated recipient is aware of the removal order and expects a call from Amazon to arrange delivery.
By adhering to these steps, you can prevent any delays or complications in the return process and ensure that your inventory is successfully returned to the correct address.
Avoiding Return Address Mistakes
Incorrect return addresses can lead to issues with your removal order, such as misdelivery or returns to the wrong location.
To avoid these mistakes, follow these best practices:
- Double-check the return address information before creating the removal order.
- Ensure that the return address matches the physical location where you want the inventory to be sent.
- If you have multiple return addresses, make sure to select the correct one for each removal order.
By verifying and confirming the accuracy of your return-to address, you can eliminate potential errors and ensure a smooth and efficient removal process for your Amazon FBA inventory.
| Return-to Address Checklist | Best Practices to Avoid Mistakes |
|---|---|
|
|
Removing Fulfillable and Unfulfillable Units
When it comes to removing inventory from Amazon FBA, it’s important to differentiate between fulfillable and unfulfillable units.
Fulfillable units refer to inventory that is still in sellable condition and can be shipped to customers. Unfulfillable units, on the other hand, are items that are not in sellable condition and cannot be shipped to customers.
When creating a removal order on Amazon FBA, you will need to specify the quantity of fulfillable and unfulfillable units that you want to remove.
This allows you to have better control over your inventory and ensures that you are only removing the items that are necessary.
It’s crucial to carefully select the number of units you wish to remove for both fulfillable and unfulfillable categories, making sure that the quantities do not exceed the available inventory for removal.
Here’s an example to better illustrate the concept:
| Product | Fulfillable Units | Unfulfillable Units |
|---|---|---|
| Product X | 10 | 2 |
| Product Y | 5 | 0 |
| Product Z | 3 | 1 |
In the above example, if you want to remove 4 fulfillable units from Product X and 1 unfulfillable unit from Product Z, you would specify those quantities in the removal order.
Your removal order would then be processed accordingly by Amazon FBA.
By accurately specifying the quantities of fulfillable and unfulfillable units to be removed, you can efficiently manage your inventory and keep your Amazon FBA account in good standing.
It also enables you to free up storage space and ensure that only quality products are available for sale to your customers.
Reviewing and Confirming the Removal Order
Before finalizing the removal order on Amazon FBA, it is important to review all the details and confirm their accuracy.
This step allows you to double-check the contact details, return address, and estimated fees associated with the order. Take the time to carefully review each element to ensure a seamless removal process.
Start by checking the contact details provided. Make sure your email address and phone number are correct.
These details are essential for effective communication regarding your removal order. If any changes are needed, update them accordingly in the Amazon Seller Central portal.
Next, verify the return address you provided. This address plays a crucial role in the removal process, especially if you chose the return-to address method.
Ensure that the return address is accurate, as it cannot be edited once the removal order is created. If you need to make changes, consider cancelling the order and creating a new one with the correct address.
Lastly, review the estimated fees associated with the removal order. Take note of the charges for each item being removed and verify that they match your expectations.
This step allows you to understand the cost implications of the removal and make informed decisions about your inventory management strategy.
Review Checklist:
- Confirm the accuracy of your contact details.
- Verify the return address is correct and cannot be edited.
- Double-check the estimated fees associated with the removal order.
Once you have reviewed and confirmed all the necessary details, you can proceed to click the Confirm button. This action signifies your acceptance of the removal order and initiates the process.
Remember, this is your last chance to make any amendments, so ensure everything is accurate before finalizing the removal order.
Now, let’s move on to the next section, where we will discuss how to automate Amazon removal orders for added convenience and efficiency.
Automating Amazon Removal Orders
To streamline the process of removing inventory from Amazon FBA, you have the option to automate removal orders. By automating this process, you can save time, avoid missing deadlines, and effectively manage your inventory.
Amazon provides the functionality to set up automatic removal orders for unfulfillable inventory and long-term inventory.
Automating removal orders is particularly beneficial for sellers who frequently need to remove inventory or have a large number of products in their Amazon FBA inventory.
By setting your preferred schedule for removals and specifying the method of removal, Amazon will automatically handle the process for you, ensuring that your inventory is promptly removed according to your preferences.
Benefits of Automating Removal Orders
Automating the removal order process can provide several advantages for Amazon FBA sellers:
- Saves time and effort: By automating removal orders, you can eliminate the need for manual intervention in the removal process. This frees up your time to focus on other important aspects of your business, such as sourcing new products or enhancing your marketing strategies.
- Avoids missing deadlines: Setting up automatic removal orders helps you stay on top of inventory management by ensuring that items are removed from Amazon FBA when necessary. This helps you avoid incurring storage fees or penalties for unfulfillable inventory.
- Reduces storage fees: By promptly removing unfulfillable or long-term inventory, you can avoid storage fees and reduce overall costs. This is especially important for sellers who have products with slow sales or those facing storage space constraints.
By taking advantage of the automation features provided by Amazon, you can ensure that your inventory is efficiently managed and aligned with your business goals.
Automation empowers you to optimize your storage space and save on fees, ultimately improving your profitability and operational efficiency.
When setting up your automatic removal orders, you can select the preferred removal method that best suits your needs, whether it’s returning the inventory to yourself, disposing of it, or liquidating it.
Remember to consider the specific requirements of each removal method and choose the one that aligns with your business objectives.
Automating the removal order process is a valuable tool for Amazon FBA sellers looking to streamline their operations and optimize their inventory management.
By leveraging this functionality, you can create a smoother and more efficient workflow, allowing you to focus on growing your business and achieving greater success on the Amazon platform.
Cancelling an Amazon Removal Order
In certain cases, you may need to cancel a removal order on Amazon FBA. This can only be done if the order is in the “Planning” or “Pending” status. Once the order is labeled as “Processing,” it cannot be canceled.
To cancel a removal order, follow these steps:
- Navigate to the Manage Orders page in your Amazon Seller Central account.
- Perform an advanced search using the order ID of the removal order you wish to cancel.
- If the order is still cancellable, select the cancellation option. Please note that canceled orders can’t be reinstated.
Ensure you cancel the removal order promptly to avoid any unnecessary charges or complications. Please remember that once an order has reached the “Processing” status, cancellation is no longer possible.
Cancel an Amazon Removal Order – Step by Step Instructions:
- Login to your Amazon Seller Central account.
- Go to the Manage Orders page.
- Perform an advanced search using the order ID of the removal order you want to cancel.
- Check the status of the removal order. If it is labeled as “Planning” or “Pending,” proceed to the next step.
- Select the cancellation option for the removal order.
- Confirm the cancellation and ensure you receive a confirmation message.
Fees for Amazon Removal Orders
When removing inventory from Amazon FBA, it’s important to consider the associated fees.
The cost of removing items depends on their quantity and size. For standard-size items, each removal incurs a fee of $0.50 per item. If you’re dealing with oversize items, the fee increases slightly to $0.60 per item.
If you need to dispose of your inventory instead of returning it, there’s an additional fee for that as well. For standard-size items, the fee is $0.15 per item, while for oversize items, it’s $0.30 per item.
It’s crucial to take these fees into account when planning your removal order on Amazon FBA.
A table summarizing the removal order fees for Amazon FBA:
| Item Size | Removal Order Fee | Disposal Fee |
|---|---|---|
| Standard-size | $0.50 per item | $0.15 per item |
| Oversize | $0.60 per item | $0.30 per item |
Keep in mind that these fees can impact your overall removal costs and should be factored into your business strategy.
It’s essential to be aware of the fees associated with Amazon removal orders to make informed decisions and optimize your inventory management.
Frequently Asked Questions
Bet you’ve got a few more questions after checking out our guide on how to remove inventory from Amazon FBA. Find the answers you’re looking for in this section.
How do I remove inventory from Amazon FBA?
To remove inventory from Amazon FBA, you need to create a removal order through Amazon Seller Central. Follow the step-by-step guide provided to successfully remove inventory from Amazon FBA.
How do I create a removal order on Amazon FBA?
To create a removal order on Amazon FBA, access Amazon Seller Central and navigate to the Manage FBA Inventory section. Select the listing you want to remove inventory from and click on the Create removal order option. Choose the method of removal, provide the necessary details, and review before confirming the order.
How do I ensure correct return-to address for Amazon FBA removal?
If you choose the return-to address method of removal, ensure that the return address is correct. This address cannot be edited once the removal order is created. Provide a physical street address in your seller’s account and specify a designated recipient who can easily be contacted.
How do I remove fulfillable and unfulfillable units from Amazon FBA?
When creating a removal order, you have to specify the quantity of fulfillable and unfulfillable units to be removed. Fulfillable units are inventory that can still be sold, while unfulfillable units are not in sellable condition. Carefully select the number of units you wish to remove for both categories, ensuring they do not exceed the available inventory for removal.
How do I review and confirm the removal order on Amazon FBA?
Before finalizing the removal order, review all the details and confirm their accuracy. Double-check the contact details, return address, and estimated fees associated with the order. Make sure everything is correct before clicking on the Confirm button.
Conclusion
Removing inventory from Amazon FBA can be a strategic move to optimize your e-commerce business and reduce costs.
By following the steps outlined in this guide, you can effectively create and manage removal orders on Amazon.
Remember to carefully consider the reasons for removing inventory, select the appropriate method of removal, and be well-prepared for the process.
Paying attention to details and staying organized will contribute to a seamless and efficient removal experience.
In summary, removing inventory from Amazon FBA involves creating a removal order through Amazon Seller Central and choosing the desired method of removal.
Reasons for removing inventory may include discontinuing a product, reducing storage fees, or improving inventory performance. It is crucial to review the order details, confirm their accuracy, and be aware of the associated fees.
Additionally, automating removal orders and canceling them when necessary can further enhance your inventory management.
By following these guidelines, you can successfully remove inventory from Amazon FBA and optimize your e-commerce operations.
Take advantage of this process to streamline your business, save on storage costs, and improve your inventory performance.
Remember to stay proactive in managing your inventory and consider removing unfulfillable units to avoid negative consequences.
Start implementing these steps today and enjoy the benefits of a well-managed inventory on Amazon FBA.
