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This article applies to selling in: Canada

FBA Liquidations

FBA Liquidations is a pilot program designed to help you recover value from overstock inventory and avoid fees for storage and removal.

Pilot program

FBA Liquidations is currently in a pilot phase. Participation is limited and by invitation only. Sellers who participate will have access to the new features of FBA Liquidations, and can provide feedback to help us refine the program.

By participating, you agree to the FBA Liquidations program terms and conditions.

How it works

FBA Liquidations is a service that can help manage your inventory. Instead of removing or disposing of excess FBA inventory, you can choose to have the inventory liquidated through an Amazon partner. By liquidating your inventory, you could recover a portion of your inventory’s value while avoiding the cost of disposal, removal, and return of your inventory, and long-term storage fees.

During this trial program, you will receive 100% of the recovered value for each liquidated item.

Once your liquidated inventory has been sold, payment will appear in your account within 60 days after we receive payment from a liquidator.

Product eligibility

Overstock inventory is eligible for liquidation. Products not eligible for liquidation include the following:

Create a liquidation order

Submit inventory to be liquidated by creating a removal order. You can create a removal order from an inventory planning page or the Recommended Removal report:

To create a liquidation order, follow these steps:

  1. Open the Create removal order form.
    • From any inventory planning page, select one or more ASINs and then, from the Action on selected drop-down menu, choose Create removal order.
    • Or, from the Recommended Removal report, click Begin removal process.
      Note: If this option does not appear, you do not have inventory that we recommend you remove.
  2. Select Liquidations as your method of removal.
  3. Enter the amount of fulfillable or unfulfillable quantity to liquidate.
  4. Click Review. You'll be prompted to confirm your order.
  5. Click Confirm.
Note:
  • Once you've submitted your liquidation order, it can't be cancelled.
  • You will not have the option to liquidate ineligible items.
  • FBA fulfilment fees do not apply to items that you liquidate through this program. See the terms and conditions for a description of how storage fees are calculated for items you elect to liquidate through this program.

Track your liquidation orders

Note: Due to COVID-19, there may be delays in these estimated timelines. However, monthly and long-term storage fees will no longer accrue upon liquidation order submission.

You can see the status of your inventory removals and value recovered from liquidated inventory in your Removal Order Detail report. Find your payments for your liquidation orders on your Payments page.

Estimated timeline Track status
Day 0
  • Liquidation order is submitted.
  • Monthly and long-term storage fees stop accruing.
Days 0–30
Day 30 (or before)
  • Inventory is shipped to one or more liquidators and is marked as Completed qty in the Removal Order Detail report.
  • Once all inventory is marked as Completed qty, the order status changes to Completed.
  • To view the estimated recovery amount for a shipped item, open a removal order from the Removal Order Detail report and click View recovery summary.
  • If your inventory was shipped to more than one liquidator, the removal order will contain multiple shipment order IDs.
Day 60 (or after)
  • The net recovery value is available on your Payments page. Payments should appear under each shipment order ID in your account 60 days after your liquidation order is submitted.
  • There are two different payment transaction types for FBA liquidations:
    • Liquidations: This transaction type is the standard liquidations order.
    • Liquidations adjustment: In cases where your inventory is damaged, lost, or not suitable for liquidations, Amazon might perform a reversal of the initial payment.

Frequently asked questions

How much will I receive for the items I liquidate?

The recovered value for liquidated inventory is typically less than 10% of its average selling price. There is no guarantee of the amount that you will recover through FBA liquidation.

What happens if an item I select for liquidation isn’t eligible for liquidation?

When you select Liquidations in the Create removal order workflow, you will only be allowed to select eligible items.

Will Amazon help me calculate the tax for liquidated items?

No. During the trial program, Amazon tax calculation services and certain features of Seller Central will not be available. At your request, Amazon will provide you with a report via email that captures transaction information for liquidated items such as ASINs, quantity, related payment amounts, and shipment address. You are solely responsible for understanding and complying with your tax obligations.

When you enrol in the trial program, an email address will be provided where you can send requests for these reports and certificates.

Who are the liquidators and what happens to my liquidated inventory?

We have contracted with wholesale liquidators who resell both Amazon-owned and FBA inventory to downstream consumers. Liquidators are contractually restricted from reselling FBA liquidated products directly on Amazon. These liquidators resell liquidated inventory through other e-commerce or brick-and-mortar channels. Liquidators cannot return liquidated inventory back to you.

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, a wholesale liquidator will purchase this inventory for a gross recovery value, which is about 5% to 10% of its average selling price (ASP). Once this inventory is shipped to a liquidator—approximately 30 days after submitting the liquidation order—you can review the gross recovery value by opening a removal order from the Removal Order Detail report and clicking View recovery summary. Once Amazon receives payment from a liquidator—approximately 60 days after submitting the liquidation order—the net recovery value will be available on your Payments page.

Can I use the inventory I submitted for liquidation to fulfil customer orders while it is pending liquidation?

After you submit a liquidation order, there is a short window of time between submitting the liquidation order and when the inventory is moved to Reserved status. During this period of time, customer orders can be fulfilled with your inventory. If your inventory is used to fulfil a customer order while liquidation is pending, you will receive the proceeds of sale rather than a liquidation payment.

How can I find payments for my liquidated inventory?

You can find payments in the Payment section of Seller Central. Payments will be listed by shipment order ID, not removal order ID. If your inventory has been shipped to multiple liquidators, you will see multiple shipment order IDs within a single removal order. To view all shipment order IDs for one removal order, open a removal order from the Removal Order Detail report, click the View recovery summary button and view the Shipment order ID column.

Does participating in FBA liquidations affect my Inventory Performance Index (IPI) score?

IPI measures how efficient and productive you are in managing your FBA inventory, and excess inventory adversely affects your IPI score. Once you’ve submitted a removal order to FBA Liquidations, the order will show as Pending on the Removal Order Detail report. Inventory that is pending removal does not influence or adversely affect your IPI score. This is the case for other removal options as well, such as Dispose and Ship-to address. Therefore, liquidating inventory can help improve your sell-through rate by reducing excess or aged inventory and positively influence your IPI score.

Why was my liquidation order cancelled?

We may cancel a liquidation order if the inventory isn’t available for removal (for example, if it is part of a pending customer order). The items will display as Cancelled in the Removal Order Detail report and will be returned to your inventory. Note that monthly and long-term storage fees will resume. If your order was cancelled, please submit a new one.

If I liquidate inventory, will Amazon restrict when I can send inventory for this ASIN to a fulfilment centre?

No. Such restrictions apply only to inventory you have returned to yourself (using the ship-to address in Seller Central) and do not apply to liquidated ASINs. For more information about restrictions, visit FBA long-term storage fees.

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