Ways to Get Feedback for Your Amazon Seller Business (2024)

Selling on Amazon using the Fulfillment by Amazon (FBA) program can be a great way to scale your business. With FBA, Amazon handles the storage, packing, and shipping of your products in their fulfillment centers.

However, FBA does come with various fees (like any third-party logistics provider) that you need to be aware of to maximize profits. One such fee is the Amazon disposal fee, which is charged when you opt to dispose of unsold or unsellable inventory stored in Amazon’s warehouses.

In this comprehensive guide, we’ll break down everything you need to know about Amazon disposal fees, including what they are, how they work, and strategies to minimize them.

Let’s start with a quick overview of the vital disposal fees you need to be aware of as an FBA seller:

• Standard-size items:
  • 0 to 0.5 lb: $1.04 per item
  • 0.5+ to 1.0 lb: $1.53 per item
  • 1.0+ to 2.0 lb: $2.27 per item
  • More than 2 lb: $2.89 + $1.06 per lb above 2 lb
• Oversize and special handling items:
  • 0 to 1.0 lb: $3.12 per item
  • 1.0+ to 2.0 lb: $4.30 per item
  • 2.0+ to 4.0 lb: $6.36 per item
  • 4.0+ to 10.0 lb: $10.04 per item
  • More than 10.0 lb: $14.32 + $1.06 per lb above 10 lb

With so many variables impacting disposal fees, occasional discrepancies happen when Amazon charges these fees or executes the disposal/removal process. It’s understandable with the high volume of daily requests.

The good news is you can get reimbursed for any FBA fee discrepancies. Getida offers FBA sellers like you a comprehensive audit – our automated dashboard technology reviews accounts in real-time to uncover overlooked reimbursem*nts! Sign up to see how much reimbursem*nts you’re eligible to receive.

Now, you’ll often hear “Amazon FBA removal fees” mentioned alongside disposal fees. Let’s dive into the key differences between disposal and removal.

The key distinction between Amazon disposal fees and removal fees is what happens to your inventory after the fees are paid:

• Disposal Fees: Charged when you opt to have unsold/unsellable FBA inventory disposed of at Amazon’s fulfillment centers. Note that disposed of does not always mean the items are destroyed – Amazon may resell, donate, recycle, or upcycle the products.
• Removal Fees: Charged when you request your inventory to be returned from Amazon’s fulfillment centers back to you. Removal fees are the same as disposal but allow you to regain the inventory.

The key difference is that disposal means the inventory is getting rid of by Amazon, while removal returns the inventory to you. Removing your inventory can help reduce long-term storage fees, but the process can take 90 days or more.

By choosing disposal, you’re essentially writing off the value of the inventory, as it will be permanently removed from Amazon’s warehouses.

An Amazon removal order is the formal request you make as a seller to have your FBA inventory returned to you or disposed of by Amazon.

For example, let’s say you have 100 standard-size items (0.5 lb) in your FBA inventory that have become unsellable. You can create a removal order to have these items returned to you or disposed of by Amazon.

Based on the standard-size item disposal fees, the total charges for removing these 100 units would be $104 (100 items x $1.04 per item).

Here are some key facts about removal orders:

• When creating the removal order, you can choose whether to have the items returned to you, donated/recycled, or liquidated by Amazon.
• Removal fees are charged per unit and vary based on the size and weight of the items:

• • Standard-size items: $1.04 to $2.89 + $1.06 per lb above 2 lbs
  • Oversize/special handling items: $3.12 to $14.32 + $1.06 per lb above 10 lbs

• You can create individual removal orders through Seller Central or bulk removal orders using file templates.
• To avoid long-term storage fees, you can set up automatic removals for aged or unsellable inventory.
• During peak seasons, processing times for removal orders can take more than 90 days (for the shipment to leave Amazon’s fulfillment centers).
• Removal orders can only be canceled if they are still in “Planning” status, not if they are “Processing” or “Pending.”
• Once a removal order is placed, the inventory cannot be used to fulfill customer orders.
• Amazon may cancel a removal order if the inventory is no longer available, such as if it has been reserved for an existing customer order.

In summary, a removal order allows you to proactively manage your FBA inventory by deciding whether to return items to your warehouse or have Amazon dispose of them.

You may want to remove inventory from a fulfillment center that is expired, damaged, or simply not selling.

Follow these steps to submit a removal order for returning or disposing of your excess FBA inventory:

1. Access Inventory to Remove

There are a few ways to start the removal order process:

• Go to the “Manage FBA Inventory” page in Seller Central. Here, you can select items you want to remove.

You can also access inventory to remove from:

• Recommended Removal report – Shows items facing long-term storage fees that Amazon recommends removing.
• Remove the Unfulfillable Inventory page to remove damaged/unsellable items.
• Fix Stranded Inventory page – For items without an active listing.

If the recommended removal list has multiple pages, create separate orders for each page.

2. Specify Removal Method

Choose what you want to be done with the items:

• Ship-to Address: Have it shipped back to you at your designated address.
• Return-to Address: Send to a different address provided, like a manufacturer or recycling center.
• Disposal/recycling by Amazon: Donate or recycle at the fulfillment center.
• Liquidation through Amazon: Recover some value by liquidating through Amazon’s liquidations program.

Note: Removal order shipments can only be sent to addresses within the United States, not territories, PO boxes, or other fulfillment centers. For non-US addresses, specialized international return shipping must be arranged separately.

3. Provide Removal Details

Next, you need to provide some details about the inventory you’re trying to remove:

• Enter a custom order ID or let Amazon generate one automatically.
• Use the search bar to add more ASINs/FNSKUs to remove.
• Enter the fulfillable (good condition) and unfulfillable (damaged) quantities you want removed for each. Quantities cannot exceed what’s available for removal.
• Confirm the totals match what you intend to remove before finalizing the list.

4. Review and Confirm Order

Carefully review all removal order details before confirming:

• Items and quantities being removed
• Removal method (return address or disposal)
• Estimated removal fees.

If everything looks good, submit the removal order.

5. Track Order Status & Claim Reimbursem*nt (When Applicable)

Record the removal order ID to track the status. The removal shipment can take 90+ days to process and leave the fulfillment center.

When it ships, ensure your chosen address recipient is fully aware of the incoming delivery and needs to accept all pallets simultaneously. Any shipment refusal may result in disposal at your cost.

Closely inspect deliveries for damaged or missing items and document issues to claim reimbursem*nt from Amazon later based on their FBA lost and damaged inventory reimbursem*nt policy.

Remember, “Example” images or “Wide-angle” group images won’t be evidence! You must provide concrete proofs like Proof of Inventory Ownership, Proof of Delivery, Amazon shipment IDs, ASIN/SKU numbers, and any other relevant documentation.

At Getida, our patented document management technology streamlines this process. Our team of ex-Amazonian experts makes managing and recovering claims easy on your behalf!

Sign up for a Getida audit review to see how much you could potentially get reimbursed right now so you can reinvest those funds back into your Amazon business and its growth.

As an FBA seller, you may find yourself with old, slow-moving, or unsellable inventory that you need to clear out.

Here are some of the key steps you can take to get rid of this inventory:

• Create a Removal Order – Return items to yourself or have Amazon dispose of them. Removal fees apply based on size/weight.
• Sell to Liquidators – Companies like B-Stock or Excess2Sell will buy your excess inventory in bulk. Usually faster but with lower profits than FBA.
• Automate Removal Orders – Set up automated removals for aged or unsellable inventory to avoid storage fees.
• Monitor Performance – Carefully track which products are selling well and which are not to make informed decisions about when to remove inventory. Use demand forecasting tools to predict sales better and avoid overstock situations.
• Optimize Listings – Adjust pricing, improve the content, etc., to boost sales performance.
• Deactivate Listings – If you’re removing inventory, closing or deleting the related product listings is a good idea to avoid buyer confusion.

The key is proactive inventory management and using removal orders, liquidation, and automation to minimize excess stock and storage fees.

Here are some tips to reduce Amazon disposal fees:

• Maintain responsible inventory levels based on sales velocity and seasonal demand.
• Use quality packaging to minimize damages and unsellable returns.
• Address customer concerns quickly to reduce return rates.
• Accurately measure product dimensions to optimize packaging and lower shipping weight.
• Regularly analyze reports and adjust pricing, content, etc., to maximize sales.
• Focus on niche categories with lower Amazon referral fees.
• Use Amazon’s Removal Order service to avoid long-term storage fees.
• Leverage multi-channel fulfillment (MCF) to diversify sales channels and lower fulfillment fees.
• Optimize Amazon PPC bids to target less competitive high-traffic keywords.

Proper inventory management and maximizing sales efficiency are key to minimizing disposal volumes and decreasing disposal costs.

Tip: You could uncover a new source of funds to reinvest into your business through FBA reimbursem*nts. Check out how Getida can help identify potential seller refunds that have been overlooked.

Aside from Amazon’s disposal service, you have alternatives, including:

• WeBuyExcess: A liquidation company specializing in buying overstock, excess, obsolete, and problem inventory, providing a stress-free liquidation process.

• Merchandise USA: A wholesale liquidator that purchases liquidation pallets, helping sellers empty warehouses and close businesses.

• Inventory Liquidation Buyers: Buys a wide range of consumer products, including closeouts, customer returns, shelf-pulls, and overstocks, offering a fast and easy liquidation process.

• Donating to Charity: The FBA Donations program allows donations of overstock and customer returns to charities. This program is part of Amazon’s broader efforts to support communities and minimize waste.

• Product Liquidators: Websites like LiquidateNow provide platforms for companies to liquidate wholesale merchandise, offering a hassle-free and low-risk solution.

The focus for you should be minimizing the need for disposal in the first place. However, when disposal is necessary, these alternatives help reduce unnecessary waste and fees.

Now that we’ve covered the critical aspects of Amazon disposal fees and strategies to minimize them, let’s address some common questions that FBA sellers like you often have on this topic.

What Does Close Listing Mean on Amazon?

Closing a listing removes the product from Amazon but keeps it in your inventory records. The listing can be reactivated anytime. This is done temporarily for out-of-stock items, etc.

Deleting a listing permanently removes the product and all its history/data from your account and Amazon. You only have 24 hours to undo a deletion.

Can Sellers Opt Out of Paying Disposal Fees?

While you can’t wholly avoid disposal fees, there are ways to reduce them:

• Request removal instead of disposal to regain inventory.
• Set up automated removals for aged/unsellable units.
• Manage inventory carefully to minimize excess stock.
• Sell excess inventory to liquidators.
• Donate unfulfillable products to charity.

Proper inventory management and alternatives to Amazon’s disposal service will help you minimize these fees.

What Items Are Eligible for Amazon Disposal?

Amazon will automatically dispose of hazardous materials, digital products, gift cards, grocery/food items, jewelry/watches, customized products, and items missing serial numbers or UPCs.

For other physical products, the seller can choose to dispose of them or return them to themselves. Hazardous and digital/virtual products are only eligible for disposal by Amazon.

What Happens to Products After They Are Disposed?

Disposed inventory goes through the following:

• Recycling and energy recovery (e.g. incineration)
• Reselling via Amazon Bulk Liquidations store
• Donations to charities when eligible
• Upcycling by sending to companies that reuse materials

Amazon maintains that no inventory goes to landfills, and its goal is zero disposal through these alternatives. However, energy recovery likely remains a common practice.

Can Disposal Fees Be Disputed?

You can dispute disposal fees if you believe you’ve been charged incorrectly. The process involves reviewing the fee details in the Seller Central account and contacting Amazon’s Seller Support if a discrepancy is found.

GETIDA’s award-winning dashboard technology can also help you find these types of FBA fee discrepancies by automatically auditing your FBA transactions in real time.

You should provide a detailed explanation of the issue along with any supporting documents. Amazon will review the dispute and determine if a reimbursem*nt or adjustment to the invoice is warranted.

As an FBA seller, you need to deeply understand Amazon’s intricate fee structure to maximize your profits and avoid unnecessary costs that eat into your margins.

However, despite your best efforts, FBA discrepancies and overcharges can and do occur occasionally. Reimbursem*nt opportunities hide in plain sight, from inventory damages to fee assessment errors. This is where Getida provides immense value.

Our strategic reconciliation approach leverages automated FBA audits and ex-Amazonians’ expertise to manage claims at a 90% success rate. See how much you could reinvest by having Getida analyze your account. Sign up for a risk-free audit review today.