When to Remove Inventory from Amazon FBA
Knowing when to remove inventory is as important as knowing when to send it in. Strategic removal saves money on storage fees and aged inventory surcharges.
When to Create Removal Orders
- Before 181 days — Avoid aged inventory surcharges
- Before October 1 — Avoid Q4 storage rate increases
- Unfulfillable inventory — Customer returns graded as unsellable
- Stranded inventory — Items with listing issues
- Discontinued products — No longer selling this item
- Seasonal products — Off-season storage is costly
Removal Order Options
| Option | Cost/Unit | Timeline |
|---|---|---|
| Return to seller | $0.97 (standard) | 10–14 days |
| Return to seller | $1.04 (oversize) | 10–14 days |
| Disposal | $0.75 (standard) | 10–14 days |
| Disposal | $0.85 (oversize) | 10–14 days |
| Liquidation | Free (Amazon pays) | 30+ days |
Removal vs Storage Cost Analysis
| Scenario | Action | Cost |
|---|---|---|
| 100 units, approaching 181 days | Remove ($0.97/unit) | $97 |
| 100 units, stay 365+ days | Storage surcharges | $500–$1,000+ |
| 100 units, low-value (<$5) | Dispose ($0.75/unit) | $75 |
| 100 units, high-value (>$20) | Remove and resell elsewhere | $97 + potential recovery |
Amazon Liquidation Program
For slow-moving inventory, Amazon's Liquidation program:
- Amazon sells your inventory to liquidation partners
- You receive a portion of the recovery (typically 5–10% of FBA price)
- No removal fees
- Better than disposal for any item with value
What to Do With Removed Inventory
- Inspect and repackage — Send back to FBA if sellable
- Sell on other channels — eBay, Walmart, your website
- Sell in bulk — Liquidation lots on B-Stock or Direct Liquidation
- Donate — Tax deduction for charitable donations
- Warehouse locally — Use Indray's warehousing for temporary storage
Removal Order Logistics
When Amazon ships removal orders, they use standard carriers. For large removal quantities, coordinate with Indray for receiving, inspection, and redistribution logistics.
