Are you planning to remove inventory from Amazon? If so, you must familiarize yourself with all the processes and requirements. Amazon FBA (Fulfillment by Amazon) is a great way to scale your business, but it also comes with certain costs, such as monthly fees and long-term storage fees. To save on these costs, you may need to remove inventory from Amazon's fulfillment centers if it has been sitting there for more than a year. This guide will discuss why removal is beneficial and how to accomplish a successful removal. So, read on if you want to find out more about how to remove inventory from Amazon in 2024.
In this guide, we will discuss:
- Why you might need to remove inventory from Amazon
- How to Remove Inventory from Amazon FBA
- Any potential problems you may encounter
- How to prepare for a successful removal
Why Might You Need to Remove Inventory from Amazon?
If you have decided to remove inventory from Amazon, chances are you already understand why this is important. But for those who are still unsure, let us explain why removing inventory from Amazon might be a good idea.
The main reason you should consider removing inventory from Amazon is to save money. As mentioned earlier, Amazon FBA comes with costs, such as monthly fees and long-term storage fees. These costs can add up quickly and could be avoided if you remove inventory from its fulfillment centers. By doing so, you can save on these costs and invest that money in other areas of your business.
Another reason might be if you have stock that has been sitting in the FBA center for more than a year. An inventory sitting for longer than 12 months can lead to Amazon charging long-term storage fees, and you may want to avoid these costs. Additionally, removing the inventory would be wise if you are no longer selling a particular product or it is being discontinued.
Next, maybe you need to estimate the condition of the inventory. If you receive high returns or customer complaints, removing the inventory and inspecting it yourself might be a good idea. This will help you determine what the problem is and take steps to correct it.
Finally, you may want to remove inventory from Amazon to better manage your inventory. By pulling back stock that is not selling, you can reinvest the money into more profitable products and help increase your bottom line.
How to Remove Inventory from Amazon FBA
Now that we have discussed why you may need to remove inventory from Amazon let’s talk about how to go about doing it step by step.
Create an Inventory Removal Order
The first step is to create an inventory removal order. This can be done by navigating to your "Manage Inventory" page and selecting the relevant items. Then choose the "Create Removal Order" option from the Action drop-down list.
Choose Disposal or Return Options
The next step is to choose what you want to do with the inventory. Options include disposing of it, in which case you will be charged a small fee per item, or returning it to an address of your choice. If you choose the return option, you will need to enter a custom or random order ID and add the address to which it should be returned.
Set SKU/Unit Quantities
When you have chosen the return or disposal option, you will need to specify the SKUs and units that should be removed. You can search for items by title, ASIN, FNSKU, or MSKU and add them to the list. You must also enter the quantity of fulfillable and unfulfillable items to be removed.
Review Your Removal Order
Once you have added all the items to be removed, you need to review your order. Check the contact details, return address, and estimated fees associated with the order. You can also change the details if necessary.
Confirm Your Removal Order
Finally, click on the “Confirm” button. A notification tab will appear to confirm the removal order has been successfully created. Amazon takes approximately 1-3 months to process your request; however, it is important to be patient and not rush the process. Taking the time to properly remove your inventory can help you achieve long-term success with your business.
Once the inventory has been removed, you can invest the money saved into other business areas, such as marketing or product development. You can also use the removed inventory to inspect and analyze its condition, enabling you to improve and enhance your product offerings.
Note: Before you start the process of removing your inventory from Amazon, it is important to ensure that you are prepared. Make sure you know why you are removing the inventory, its condition, and what you plan to do with it once it has been removed.
Check our guide to launching new products on Amazon for more information. This guide covers the entire process, from researching the competition to optimizing your product listing.
Potential Problems When Removing Inventory from Amazon FBA
Despite being a fairly straightforward process, removing inventory from an Amazon FBA center can come with a few problems. Here are some of the potential issues that you might experience:
- Inventory not arriving at its destination in time
- Inventory arriving damaged
- Miscommunication between Amazon and sellers can result in incorrect removal orders
- Poor customer service can lead to delays in the process
To avoid these problems, it is important to plan ahead and ensure you have the right resources in place to manage the inventory removal process. Taking steps like double-checking your order before it is confirmed, communicating with Amazon about any issues, and tracking your order can help you avoid potential problems.
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How to Prepare for a Successful Removal
In order to ensure that you have a successful removal, it is important to prepare beforehand. Here are some tips on how to prepare for an effective inventory removal process:
- Make sure you have all the necessary information about the inventory, such as SKUs, titles, ASINs, and FNSKUs
- Calculate the estimated costs associated with the removal, including transportation and storage fees
- Ensure that all contact details are correct and up-to-date
- Check the return address and make sure it is a physical street address in your seller’s account
- Track your order and monitor it regularly
- Look for notifications from Amazon about any required removals
- Double-check your order before it is confirmed
- Communicate with Amazon about any issues that may arise
By taking the time to prepare for the removal process, you can ensure that your inventory is removed efficiently and effectively. This will save you time and money in the long run, enabling you to focus on other business areas.
Conclusion
Removing your inventory from Amazon FBA is time-consuming, but it can be made simpler and easier with the right preparation. By following the steps mentioned above, you can ensure that your removal process is successful and that your inventory is removed without any issues.
With a little effort and some careful planning, removing your inventory from Amazon FBA can be a stress-free and rewarding experience. Good luck! And don't forget to track your order once it's been processed. It will help you stay on top of any potential problems and make sure your inventory is returned to you in the condition you expect.
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Answers to All your Questions Regarding Removal of Inventory from Amazon FBA
How Much Does It Cost to Remove Inventory from Amazon?
The removal cost of inventory from Amazon depends on the number of products you remove and their size. Generally, it will cost $0.50 per item for standard-size items and $0.60 for oversize items. Disposal of the inventory will cost an additional fee of $0.15 per item for standard-size items and $0.30 for oversized items.
How to Remove Inventory from Amazon FBA?
The process of removing inventory from Amazon FBA is relatively straightforward. You will need to submit a removal order through Amazon seller central, which can be found on the "Manage Inventory" tab. You will need to specify the inventory quantity, SKU, and destination address for its removal. If you are disposing of the inventory, you must specify this in your order. Once the order is confirmed, Amazon will begin processing it.