Strategy - Liquidation
There are multiple ways to remove inventory from Amazon FBA, from Liquidations to Removals to Disposals and even FBA donations. This particular article focuses only on the Liquidation Program. However, for more context please also check out the full article to compare all methods and the pros and cons of each, here.
LIQUIDATION
Your stock is sold to a liquidator. With FBA Liquidations, Amazon finds a liquidator for you and handles everything. They take a percentage of the gross recovery value and charge a processing fee.
Pros
- You often see some cash back.
- You avoid excess storage fees.
- You don’t have to figure out what to do with the stock.
Cons
- A liquidator can legally sell your liquidated stock against you on your listing.
- Not all products are eligible.
- A liquidator won’t always be found.
- The associated costs may be higher than the recovery value, meaning you lose money.
- Amazon won’t let you send in new inventory for that ASIN for the next 90 days.
Recommendations
- If removing a portion of stock, keep 120 days of stock at FBA as a cushion until Amazon let’s you send stock back in after 90 days.
Resources Links
Update Automate Unfulfillable Settings in Seller Central to activate automated Liquidations.
LEARN ABOUT RESELLER RISKS HERE