Detailed explanation of Amazon FBA withdrawal methods and processing strategies

For sellers who operate stores on the Amazon platform, if their products are unsaleable for a long time, their listings are removed, or they cannot be resold, timely withdrawal is one of the necessary measures. This article will analyze in detail several common ways to withdraw Amazon FBA positions and their applicable scenarios.

Main reasons for closing positions

There are various reasons for withdrawing a position, including but not limited to:

• The goods have been unsaleable for a long time, resulting in excessive storage costs. Reduce unnecessary expenses by withdrawing warehouses;
• The product has been removed due to infringement or quality issues and cannot be sold further;
• The goods were damaged during the FBA first leg, or the packaging was damaged after the buyer returned the goods and cannot be sold again;
• The product label is wrong and needs to be removed from the warehouse and relabeled.

How to handle withdrawals

The Amazon system provides sellers with three main withdrawal processing options: Ship-to Address, Dispose and Liquidate. Each method has its own characteristics and applicable conditions:

1. Ship to designated address: Suitable for items with large inventory and high value. Sellers need to add a specific shipping address to the system and create a removal order. Amazon typically ships items to the designated location within 10 to 14 days after the order is created. However, during busy periods at FBA warehouses, this process may be extended.

2. Disposal: Disposal is a simple and straightforward option for low-volume, low-value items, or items that cannot be sold again even if withdrawn. There is no need to provide a receiving address when selecting this option. You only need to mark the corresponding product and quantity in the system to complete the operation.

3. Liquidation and Liquidation: This is a new service that Amazon has added in recent years. It allows sellers to quickly recoup some of their funds by selling their items that still have sales potential to third-party buyers at a lower price. This method is especially suitable for those products that still have market demand but the sellers themselves lack effective sales channels. It’s worth noting that not all items can be processed through this route.

Fees Description

Whether you choose to ship or discard, Amazon will charge the seller a certain processing fee. Specific rates can be found in the Seller Center backend. In contrast, liquidation is free for sellers, and Amazon no longer charges sellers any additional fees for this transaction.

Through the above introduction, I believe that all sellers have a more comprehensive understanding of Amazon FBA withdrawal. In actual operations, it is recommended to flexibly choose the most appropriate exit plan based on your own specific circumstances to maximize benefits while reducing losses.