Comprehensive Guide: How to Remove Inventory from Amazon FBA Warehouses

Efficient inventory management is essential for Amazon sellers using Fulfillment by Amazon (FBA). Whether you're managing overstock, discontinuing products, or switching fulfillment methods, understanding the removal process can save you time and money. This guide outlines the key reasons for inventory removal, steps to create removal orders, associated costs, and tips to streamline inventory management.

Why Remove Inventory from Amazon FBA?

Several scenarios may require you to remove inventory from Amazon's warehouses:

Overstock

Excess inventory increases storage fees, especially during peak periods.

Discontinued Products

Items no longer available for sale should be removed to avoid unnecessary fees.

Seasonal Products

Clearing seasonal stock during off-seasons helps minimize storage costs.

Product Condition Issues

Damaged or unsellable products should be removed or disposed of appropriately.

Fulfillment Strategy Changes

Switching from FBA to another fulfillment method may require inventory retrieval.

Step-by-Step Guide to Remove Inventory

Follow these steps to create a removal order in Seller Central:

1. Log In to Seller Central

• Access your Amazon Seller Central account.

2. Navigate to Your Inventory

• Hover over the "Inventory" tab and select "Manage Inventory".

3. Select the Items for Removal

• Check the boxes next to the items you wish to remove.

4. Create a Removal Order

• Click the "Action on selected" drop-down menu.
• Choose "Create removal order".

5. Choose a Removal Method

• Return to Address: Ship the inventory to your chosen location.
• Disposal: Have Amazon dispose of the items.
• Liquidation: Sell items through Amazon's liquidation program.

6. Provide Return Address (If Applicable)

• If selecting the return option, enter the delivery address for the inventory.

7. Confirm and Submit

• Review all details.
• Confirm and submit your removal order.

Costs Associated with Inventory Removal

Removal Fees

Amazon charges a per-item fee based on size and weight.

Disposal Fees

Disposal incurs additional fees per item.

How to Track Your Removal Orders

1. Access Removal Orders

• Go to the "Inventory" tab.
• Select "Removal Order Summary".

2. Monitor Status

• Review the status of each order and track progress.

Tips for Smarter Inventory Management

Conduct Regular Audits

Identify slow-moving or excess inventory with regular checks.

Plan for Seasonal Demand

Adjust inventory levels to match seasonal trends and avoid overstocking.

Monitor Storage Fees

Stay aware of long-term storage fees to avoid unnecessary charges.

Conclusion

Removing inventory from Amazon’s FBA warehouses is a simple yet critical process for optimizing business operations. By staying informed about Amazon’s policies, fees, and best practices, sellers can make smart decisions to manage inventory effectively, reduce costs, and maintain profitability.

Stay proactive, plan strategically, and ensure your inventory aligns with your business goals.