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Amazon FBA Liquidation program UK: Costs and what you should know.

Updated: Feb 17

In recent years, Amazon has come under scrutiny, and it's no wonder that their policies on FBA excess inventory liquidation have raised concerns among the public.

However, Amazon is not the only culprit when it comes to inefficient overstock inventory management. This excess inventory issue is a common challenge for retailers. Some products just don't find buyers. FBA seller's are more keenly aware of the risks associated with holding onto excess stock, racking up those high storage fees, compared to their brick-and-mortar counterparts.




How much will Amazon’s FBA Liquidation program pay you?


To answer the reason why you’re most likely here, in brief, Amazon’s FBA liquidation program will usually pay you around 5-10% of the average sale price of your product minus the liquidation fees (Processing fee + Referral fee). One of the downsides of using Amazon, is that you will not know how much you will get paid for your stock until you have requested to liquidate the products.


The referral fee for the Amazon FBA liquidation program is 15% on each item sold through FBA liquidations, which is based on the gross recovery value.


The processing fee for the Amazon FBA liquidation program varies depending on the size and weight of your product. With the cheapest fee being £0.30 per product, and the upper end being uncapped depending on the weight of your product. See the below table for the specific processing fee costs for the UK in GBP £ , and the EU in the Euro. Use our free Amazon Liquidation fee calculator here.


SIZE

Weight

Fee

Standard Size

0-200g

€0.32/£0.30


201-500g

€0.32/£0.30


501-1000g

€0.58/£0.60


1001g +

€0.64 + €0.40 for each incremental 1,000 g


£0.67 + £0.40 for each incremental 1,000 g*

Oversized

0-500g

€0.64/£0.66


501-1000g

€1.28/£1.32


1001-2000g

€1.92/£1.98


2001-5000g

€3.21/£3.31


5001g+

€3.85 + €0.40 for each incremental 1,000 g

£3.97 + £0.40 for each incremental 1,000 g*

Last updated Febuary 10th 2024


What are your alternatives to the Amazon FBA liquidations program?


As Amazon will pay you pennies to the pound for excess inventory. One alternative for an Amazon seller to direct liquidation could be selling to pinkliquidation.com . As we are a liquidation wholesaler, you will be cutting out the middlemen (Amazon and third parties), potentially getting more money for your stock.


Unlike Amazon, we will tell you what we can pay before you send us your stock. That way, you can assess your best options, before committing to anything.


You will be able to place a removal order on Amazon, to have your stock sent directly to our warehouse, next to the FBA donation button. Pinkliquidation.com is also a great option if not all of your stock is in the FBA warehouse, as we can arrange a collection from your premise, alongside being sent stock via an Amazon removal order.


To find out how much we can pay for your stock today fill out the form by clicking here. We typically respond within 1 hour to all inquiries during UK working hours.



Why should you Liquidate your Amazon FBA inventory?


As an Amazon FBA seller, lthough daunting, liquidating unwanted inventory can often make sense at a fraction of the cost, especially for online retailers. As Amazon’s high storage costs make it an easier option to cut off the under performing line now, rather than incur the high costs until it eventually, if ever, sells out.




What is Amazon’s FBA Liquidation program?


Amazon’ FBA liquidation program is designed to help sellers move on excess inventory that would otherwise be destroyed or returned to the seller.


Inventory storage fees are calculated on the average number of products stored at a FBA warehouse each month. When a listing is doing well, it’s a minor cost.




FBA Inventory cost on your IPI


Fulfilment by Amazon (FBA) liquidations can be quite expensive, and the true financial burden for sellers doesn't solely lie in monthly storage fees. The real impact is felt through the Inventory Performance Index (IPI), a crucial metric measuring FBA seller performance based on their sell-through ability, stock availability, and general sales within a 90-day period.

Typically, a score above 450 is the benchmark, and most FBA sellers can easily meet this standard. However, consistently low IPI scores can have significant consequences, affecting available storage space and even jeopardising the seller's eligibility to use Amazon FBA.

Despite Amazon's rapid expansion in warehousing facilities over the past couple of years, the space for excess Amazon inventory is limited. Moreover, with nearly 2,000 new sellers joining Amazon daily, the competition for physical storage space has become remarkably intense.




So how do you open an Amazon FBA liquidation order?


To initiate an Amazon FBA liquidation order, follow these steps:

  1. Navigate to the inventory planning page in the Amazon Seller Central.

  2. Choose the specific item you want to remove manually by clicking on the Action tab in the item's drop-down menu, and then select "Create removal order." Alternatively, if you're dealing with an item from your Recommended Removal report in the Inventory Performance dashboard, click on "Begin removal process." For bulk inventory removal, you can request a template from the Upload removal order documents page.

  3. Click on "Liquidations."

  4. Enter the quantity of the Amazon products you wish to liquidate, carefully review your order, and confirm it. Once a liquidation order is confirmed, it cannot be cancelled.


Sell your stock to us today by filling in our stock sale form click here


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