Amazon Removal Order #1 Guide
One crucial aspect of inventory management is understanding Amazon removal order.
Effective inventory management is essential for Amazon sellers to maximize profits and maintain a healthy cash flow.
In 2023, Amazon had increased FBA removal and disposal fees for standard-size items by 45 cents to $1.06, with larger items seeing even steeper hikes of up to $4.38.
What is the Amazon Removal Order?
Amazon FBA removal order is a formal instruction a seller submits to Amazon’s fulfillment centers to have specific inventory units retrieved from storage and sent to a designated location, or disposed of entirely.
This process is beneficial in various situations.
For instance, if a product line is discontinued or experiences slow sales, a removal order can be used to reclaim storage space and avoid ongoing storage fees.
Sellers may also choose to remove damaged or defective products to prevent safety hazards and potential customer returns.
Product updates or recalls necessitate the removal of existing stock to ensure customer safety and compliance with regulations. A change in selling strategy, such as a shift to a different fulfillment method or selling the inventory elsewhere, can prompt the use of removal orders to regain control over the products.
Why Remove Inventory from Amazon?
Products that haven’t sold in a long time and are unlikely to sell soon can result in high storage fees, resulting in Amazon removal order cost is reduced and frees up space.
Inventory that is damaged or defective cannot be sold and may even pose safety risks. Removal order Amazon prevents further issues and potential returns.
If a product needs to be updated or recalled due to safety concerns or errors, removing existing stock is necessary.
Sellers may decide to switch fulfillment methods or sell their inventory elsewhere. Removing inventory allows them to regain control over the products.
How Does Removal Work on Amazon?
The removal process on Amazon is straightforward. Sellers initiate the process by submitting a removal order through Seller Central.
This order specifies the items they want removed, the desired removal method (return or disposal), and the quantity.
Once the removal order is submitted, Amazon’s system verifies the information and calculates any associated removal fees. These Amazon FBA removal fees typically cover the cost of Amazon picking, packing, and shipping the removed inventory back to the seller’s designated address, or the cost of responsibly disposing of the items according to local regulations.
Amazon also provides an estimated timeframe for the removal process, which can vary depending on several factors such as the removal method chosen, the volume of items being removed, and the location of the fulfillment center.
What Are Amazon Inventory Removal Fees?
Amazon removal order fees go divide into two main types:
Removal Fees
Removal fees Amazon covers the cost of Amazon picking, packing, and shipping the removed inventory back to the seller’s designated address.
The removal fee varies depending on the item size, weight, and destination.
Disposal Fees
Amazon disposal fees relate to if a seller chooses to have Amazon dispose of unwanted inventory, a disposal fee is applied.
This FBA disposal fee covers the cost of Amazon responsibly disposing of the items according to local regulations.
The disposal fee also varies based on the item category and weight.
How to Create A Removal Order on Amazon?
Creating a removal order on Amazon is a simple process:
- Log in to your Seller Central account.
- Navigate to the “inventory” tab and select “Manage Inventory“.
- Locate the item(s) you want to remove. You can use filters to narrow down the list by Fulfilled by Amazon (FBA) status.
- Click the dropdown menu next to “Edit” and choose “Create removal order.”
- Select the removal method (Return to address or Dispose) and enter the desired removal quantity.
- Review the removal order details, including estimated fees and processing time.
- Confirm the removal order if everything is correct.
How to Cancel A Removal Order?
Amazon allows sellers to cancel removal orders as long as Amazon hasn’t begun processing them. To cancel remove orders from Amazon, do the following steps:
- Go to “Manage Inventory” in Seller Central.
- Locate the removal order you want to cancel.
- Click on the remove order ID.
- If the order status is still “Processing,” you will see a “Cancel Removal Order” button. Click on it to cancel the order.
What Are the Possible Issues When Removing Inventory?
While Amazon’s FBA removal process is generally efficient, there are potential issues that can rise:
Inventory Discrepancies
Issues between a seller’s inventory records and Amazon’s fulfillment center data can occur due to various factors:
Inconsistencies can stern from typos or mistakes during product listing or inventory updates on either the seller or Amazon’s side.
Variations between the quantity of inventory a seller sends to Amazon and the quantity Amazon receives can lead to discrepancies. Damaged items during inbound shipping or fulfillment center counting errors can be culprits here.
While uncommon, products can be damaged or lost while stored at Amazon’s fulfillment centers. This can cause discrepancies between seller records and Amazon’s data.
Mitigating Inventory Discrepancies
Regularly reconcile your inventory records with Amazon’s data to identify and rectify discrepancies promptly.
Meticulously verify incoming and outgoing inventory quantities to ensure data accuracy.
Take clear pictures of the inventory before sending it to Amazon to document any pre-existing damage.
Although rare, items can be lost or damaged during the removal process due to several factors.
Lost or damaged items during removal can result in financial loss for the seller, especially for high-value or fragile products.
Minimizing Loss During Removal
Consider purchasing shipping insurance for valuable or fragile items to protect against loss or damage during removal.
Ensure proper packaging with adequate cushioning materials to minimize the risk of damage during transportation.