FBA Liquidations

For an introduction to the FBA Liquidations program, watch this Seller University video.

FBA Liquidations is a program designed to help you recover value from excess and customer-returned inventory, avoid storage fees, and prevent inventory disposal.

Program fees apply. For more information, go to FBA Liquidations fees.

Instead of paying to dispose or remove excess and customer-returned FBA inventory, you can use FBA Liquidations to have the inventory liquidated through a trusted provider. By liquidating inventory, you recover a portion of your inventory cost while avoiding the cost of monthly and long-term storage fees. When your inventory may potentially be purchased by a wholesale liquidator, 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

Amazon will attempt to arrange a buyer for the eligible items that you submit for liquidation within 30 days of your submission. If a liquidation transaction is successful, Amazon will coordinate the transfer of the amount that the buyer pays for these items (the gross recovery value), minus fees, to your seller account. This is your net recovery value.

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.

By participating in this program, you agree to the Terms and Conditions.

To find out how FBA Liquidations works, watch this Seller University video.

Before you can submit a liquidation order for your units, you must meet the following requirements:

• Enroll in the VAT calculation service
• Have a verified VAT registration number for the country of storage

Eligibility for liquidation is subject to legal, safety, and regulatory guidelines. Products not eligible for liquidation include:

• Dangerous goods (hazmat)
• Recalled inventory

1. Create a liquidation order from Seller Central:
   • a. Use any of the following pages to identify inventory for FBA Liquidations.
     • Manage Excess Inventory
     • Fix Stranded Inventory
     • Inventory Age
     • Recommended Removal
     • Manage All Inventory
     • Inventory Amazon Fulfills
   • b. On most pages, you can select a single or multiple ASINs and choose Create removal order within your action list. For the Recommended Removal report, click Begin removal process (only appears if you have inventory that we recommend you remove).
2. On the Create removal order page, under Choose method of removal, select Liquidate.
3. Choose the amount of unfulfillable or fulfillable quantity to liquidate.
4. Click Review to review your order.
5. Click Confirm.

To learn more about creating a liquidation order, watch this Seller University video.

• To view your Liquidations transactions, go to the Transaction view tab of the Payments dashboard.

There are three different transaction types related to FBA Liquidations:

• Liquidations: The transaction type for a standard liquidations order.
• Liquidations adjustment: A reversal of the initial payment in cases where your inventory is damaged, lost, or not suitable for liquidation.
• Other: If there is a liquidation adjustment, you might be eligible for a reimbursement equivalent to the net recovery value.

How much will I receive for the items that I liquidate?

The maximum recovered value is 5% to 20%* of the average selling price of your ASIN. There is no guarantee of the amount that you will recover through FBA Liquidations.

*This result may vary based on contracted rates with third-party wholesale liquidators that buy the inventory. Amazon cannot guarantee a set recovery rate.

Can I use inventory that is pending liquidation to fulfill customer orders?

After you submit a liquidation order, your inventory remains available to fulfill customer orders while liquidation is pending. If your inventory is used to fulfill a customer order while liquidation is pending, you will receive the proceeds of sale rather than a liquidation payment. When the inventory is liquidated and no longer available to fulfill orders, it will show up as Complete in your Removal Order Detail report.

What happens if an item that I select for liquidation is not eligible?

You will receive an error message in the ‘create removal order’ workflow if you’ve selected inventory that is not eligible for liquidation.

Can I preview the gross and net recovery value before I create my liquidation order?

No. When you submit a liquidation order, Amazon will attempt to arrange a liquidator for this inventory. If arranged, the item(s) will be purchased for a recovery value, which you can review in the Removal Order Detail report by clicking View recovery summary. Once Amazon receives payment from a liquidator, the net recovery value will be available on your Payments page.

How can I find the payments for my liquidated inventory?

Payments are listed by shipment order ID, not removal order ID, in the Payments dashboard in Seller Central.

If your inventory was shipped to multiple liquidators, multiple shipment order IDs will display within a single removal order. Use the shipment order ID to track your payment, even for removal order IDs with one associated shipment order ID.

To view all shipment order IDs for one removal order, open a removal order from the Removal Order Details report, click "View recovery summary," and view the "Shipment Order ID" column. If you have inventory in "Pending" status in the Removal Order Details report, some of your inventory has not yet been liquidated. Once the inventory is shipped to a liquidator, your inventory will have an associated shipment order ID.

Why did I receive different payment amounts for the same liquidated ASIN?

Amazon may have different contracted liquidation rates by warehouse. If you submit a liquidation order for multiple units of a single ASIN and the units are located among multiple warehouses, Amazon will attempt to process the units that provide you with the greatest recovery value first.

Why was my liquidation order canceled?

Our system carries out several eligibility checks upon submitting liquidation orders.

The most common reasons behind cancellations are:

• Duplicate removal orders were created for the same item.
• No liquidation partner has the capacity to receive the item you want to liquidate.
• Your eligibility criteria changed during the order processing; for example, your VAT registration number in the inventory storage location became invalid, or you deactivated VAT Calculation Service (VCS) settings to opt out of the invoicing features offered by Amazon.

Make sure you do not create liquidation orders for items that are already part of another removal order.

Can I use my standard Seller Central Tax Report to report liquidation sales?

Your Seller Central Tax Report determines which period to report your sales based on the date of cash receipt and the date of shipment. Liquidation sales will be reported in the period based on the shipment date of your items, but the sales will not appear in the report until the liquidator has transmitted payment to Amazon. To track your liquidation sales in real time, regardless of when the liquidator transmits payment, review your Removal Order Detail report.

Will Amazon help me calculate tax for items that are liquidated through the program?

Yes. To participate in the program, you will be required to enroll in the VAT Calculation Service. This free service provides you with billing and VAT calculation reporting functionalities. Learn more about VAT Calculation Service. Amazon does not give tax, legal or other professional advice. You should consult your tax advisor to help you understand your VAT obligations.

What other options do I have for excess inventory or to recover value?

Amazon offers a great range of services for both excess and customer-returned FBA inventory. For more information, go to Value-recovery services.

Who can buy the liquidated stock?

Amazon onboards trusted and established players in the liquidations industry into the liquidation program. Their size allows them the opportunity to engage with multiple geographical markets, matching optimum market demand to a range of stock and asset profiles, giving you the best recovery rates. Review the program’s terms and conditions for more information.