New Changes To Removal Of Aged Inventory

In preparation for the holiday rush, Amazon has recently updated its Automated Removal of Aged Inventory.

The update broadens the scope of said service and introduces a value-recovery option. You can now enable automatic removals for the following types of inventory and opt to liquidate them at the same time:

• Inventory that’s left sitting in Amazon warehouses for over 12 months and likely to incur long-term storage fees.
• Inventory that has remained unsold for 6 consecutive months and has been in Amazon for over half a year.

Prior to the update, Amazon only accepted automatic removal of unsellable inventory (products returned by customers in bad condition) and inventory that was subject to long-term storage fees.

The recent move is most likely an attempt to allow more room for popular products this Q4 to brace for another eCommerce-driven holiday sale period and to create a more streamlined way of sellers clearing out old inventory systematically. Adopting this feature could help improve your IPI score and minimize holding costs.

Meanwhile, the newly added value-recovery option allows you to liquidate aging inventory through Amazon’s FBA Liquidations Program. You could recoup 5% to 10% of your product’s selling price by liquidating inventory while avoiding long-term storage fees. The net value recovered should appear in your account 60 to 90 days after the liquidation order is submitted. You’re not going to make a lot of money for sure, but it’s still a better option than simply disposing of your products.

However, if liquidation is not the right option for you, consider creating a Removal Order to have your items sent back to you instead. Simply adjust your Automated Fulfillable Inventory settings and input your return address.

Regularly check your Manage Inventory Health page to identify aging inventory or slow sellers before they start incurring additional storage costs and affecting your IPI score. For more tips, check out this article: Excess Inventory: Why It’s Bad and How to Reduce It?