Amazon Removal Fee (Disposal Fee). What is it, and How much? How to Remove items? Ultimate Guide 2023

Amazon Removal Fee

The Amazon Removal Fee or Disposal Fee is the cost of either returning your inventory items or having them disposed of by Amazon. This fee can vary depending on the size and quantity of the items.

Size categoryShipping weightRemoval / Disposal fee per item
Standard-size0 to 0.5 lb$0.97
0.5+ to 1.0 lb$1.46
1.0+ to 2.0 lb$2.20
More than 2 lb$2.83 + $1.06/lb above 2 lb
Oversize and special handling items0 to 1.0 lb$3.12
1+ to 2.0 lb$4.07
2.0+ to 4.0 lb$5.56
4.0+ to 10.0 lb$9.43
More than 10.0 lb$13.05 + $1.06/lb above 10 lb

Understanding Amazon Removal Fee

Amazon Removal Fee is a charge that Amazon sellers face when they request their inventory removed from Amazon’s fulfillment centers. This can happen if the inventory is damaged, expired, or unsellable. As an Amazon FBA seller, knowing the different types of removal fees and their costs is important.

There are two main types of Amazon Removal Fees: the removal fee for returning your inventory to you and the disposal fee, charged when you want your items to be disposed of at the fulfillment center.

Since January 17, 2023, Amazon has increased removal and disposal fees per unit.

Remove from Seller Central Inventory

If you are removing from Seller Central inventory, you need to create an FBA Removal Order for specific ASINs or SKUs in your listings. Removing inventory may be necessary to avoid long-term storage fees, which can accumulate if your products stay unsold for extended periods in Amazon’s warehouses.

Amazon Removal Fee Content

Amazon Removal Fee Tips

Here are some tips for managing Amazon Removal Fees in your business:

  • Monitor your inventory closely: Track how long each item has been in Amazon’s fulfillment center and the demand for your products. This helps you make informed decisions about removing or disposing of your inventory.
  • Evaluate your pricing strategy: If items aren’t selling well, consider adjusting prices or offering discounts to increase their turnover rate and avoid removal fees.
  • Quality control: Ensure your products are in good condition, correctly packaged, and have accurate product information to avoid issues with damaged or unsellable items.

Remember, understanding and managing Amazon Removal Fees is crucial to maintaining healthy profit margins and ensuring the great performance of your FBA business.

Removal Vs. Disposal: What’s the Difference?

Removal fees

Removal fees are charged when you request that Amazon return your inventory from the fulfillment center. This process helps reduce inventory storage fees while letting you regain stock control. The cost of removal fees depends on the item’s size and weight. Remember that removing processing times can take up to 30 days or more, with fulfillment within 14 business days.

Disposal fees

Disposal fees apply when you decide to have your FBA inventory disposed of at the fulfillment center instead of being returned to you. Choosing this option is generally faster and cheaper than removal fees. However, you need to consider the environmental impact and the loss of any potential value your items may have if sold on secondary markets.

Amazon has increased removal and disposal fees per unit since January 17, 2023, so staying up-to-date with the latest fee structures is essential. You can visit the current fee schedule on the Amazon FBA fee changes page.

Calculating Removal Fee Costs and Fees

Calculating Amazon removal fees requires considering storage, fulfillment, and product size. Removal fees are applied when you request inventory to be removed from Amazon fulfillment centers. They cover handling, processing, removing, and disposing of the goods.

Remove item fees

Standard-size items removal fee starts from $0.97 per item, while oversized items are $3.12 per item fee. To estimate the removal cost, consider the number of items and their size classification (standard or oversize).

Amazon Fulfillment fees, distinct from removal fees, depending on the product’s size and weight. For instance, the fees apply for small standard-sized items (15x12x0.75 inches max), which charge $2.47 for anything weighing 4 oz or less and $2.54 for items weighing 4-8 oz. Large standard-sized items (18x14x8 inches max) have charges of $2.66 and $2.77, respectively.

Amazon Storage fees are based on the cubic foot of occupied storage space in Amazon fulfillment centers. These fees vary by product size and the time of the year:

  • January to September: $0.87 per cubic foot for standard size and $0.56 per cubic foot for oversize items.
  • October to December: $2.40 per cubic foot for standard size and $1.40 per cubic foot for oversize items.

To calculate storage fees, use this formula:

Storage fee = (Length × Width × Height × Number of Units × Storage Fee Rate) / 1728

Remember that Amazon’s dimensions are in inches, and 1728 is the number of cubic inches in a cubic foot.

Dimensional weight and shipping weight are also relevant factors. Amazon calculates dimensional weight by dividing the product volume (in cubic inches) by a factor (typically 166 for domestic or 139 for international shipping) and then rounding up to the nearest pound. The shipping weight is the greater of the actual weight or the dimensional weight. Higher shipping weights may lead to increased FBA fees.

In summary, calculating Amazon removal fees involves considering inventory removal costs, fulfillment fees, storage fees, product size, and shipping weight. By understanding these factors, you can better manage your Amazon fees for your FBA Business and optimize your business strategy.

Understanding Aged Inventory Surcharge Storage Fees

Aged inventory surcharge storage fees are another consideration for your inventory within Amazon fulfillment centers. For items stored after 181 days, Amazon charges $0.69 per cubic foot starting from April 15, 2023, except for individual sellers, new sellers, and sellers with less than or equal to 25 cubic feet of daily volume.

Let’s break down a few important points about aged inventory storage fees:

  • Calculation: The fees are calculated mainly based on the cubic footage occupied by your items, which means that volume plays a vital role in determining costs.
  • Frequency: Amazon charges this fee once a month. It’s essential to monitor your inventory age to avoid unexpectedly high fees.
  • Additional Costs: The fees are charged in addition to the regular monthly storage fees, so consider this when estimating your total costs.

To calculate your storage fees, consider the following formula:

Aged Inventory Surcharge Storage Fee = (Cubic Feet of Inventory) x (Fee Rate)

Here are some suggestions to reduce long-term storage fees and improve your inventory management:

  1. Regularly monitor inventory: Keeping a close eye on your inventory age will help you identify items subject to long-term storage fees.
  2. Optimize your portfolio: Analyze your product selection and remove slow-moving items to minimize inventory occupying valuable space.
  3. Schedule periodic removals: Schedule removal or disposal of unsold items before they reach the 180-day mark to avoid incurring aged inventory surcharge storage fees.

The Removal Order Process

When managing your inventory on Amazon, you may encounter situations where you’ll need to request a removal order. This process involves having Amazon return or dispose of your FBA inventory stored in their fulfillment centers. Reasons for a removal order may include damaged, expired, or unsellable items.

Remove order

When removing a product from your FBA inventory, you need a removal order. Amazon requires you to provide a ship-to address where they can return the inventory. You must also choose a carrier to handle shipping. As a seller, you’ll receive a tracking number once the order is shipped, enabling you to monitor the shipping process closely.

Amazon charges a per-unit removal fee for each order, which covers the handling, processing, and disposal of your goods.

Here’s a brief overview of how the removing order process works:

Amazon removal process

  1. Log in to your Amazon Seller Central account.
  2. Navigate to the Inventory section and click “Manage FBA Inventory.”
  3. Identify the listing that requires a removal order and click the dropdown arrow next to “Edit.”
  4. Follow the removal order steps to provide the necessary information.

Effect of Removal Fee on Revenue

Amazon Removal Fee is a charge imposed on sellers when they request the return or disposal of unsellable inventory stored in Amazon’s fulfillment centers. By understanding these fees and their impact on revenue, you can make informed decisions on managing your inventory and expenses.

To better grasp the impact of these fees on your revenue, consider the following:

  • Inventory Management: Efficiently managing your inventory levels helps reduce unnecessary storage fees and minimize the chances of removal orders.
  • Product Turnover: A high turnover of products leads to fewer removal orders, as you’re regularly selling products and no longer incurring storage fees.
  • Profit Margins: Account for removal fees when estimating profit margins, as these expenses can considerably cut your revenue if not considered.

Removing example

For example, imagine you have 100 unsellable standard-size items in Seller Central that you want to return or remove. The removal fee for these items would be $97 (100 items * $0.97). This charge directly impacts your revenue and should be considered when accounting for your business expenses.

Product and Packaging Requirements

When preparing items to be shipped to Amazon FBA warehouses for storage and fulfillment, adhering to proper product and packaging requirements is vital. This helps ensure your inventory is processed efficiently and correctly, preventing unnecessary removal fees.

Choosing the appropriate packaging for your units is crucial for their protection and identification. Each item must be contained in a single package, and similar units should be packaged together in bundles where appropriate. However, small products under 3.5 inches in length require special attention to prevent delays and mishandling during the picking and packing.

Amazon Product size

Product size plays a significant role in determining storage fees and impacts which Amazon FBA warehouses your items will be stored at. To calculate your product’s size, combine its length, width, and height, including any packaging material around it. Measure these dimensions accurately and update any changes in your Amazon Seller Central account to stay informed about fees and requirements.

Amazon labeling FNSKU

When labeling your units, including the Universal Product Code (UPC) is vital for accurate identification and inventory tracking, but also including an FBA-specific FNSKU label on products (Fulfillment Network Stock Keeping Unit) is mandatory. The FNSKU is created by Amazon and assigned to your product when you list it for the first time, while the MSKU (Merchant Stock Keeping Unit) assists in tracking inventory within your system.

Use proper labeling requirements to prevent confusion or delays in Amazon’s fulfillment center.

Keep in mind the following essential aspects when preparing your products:

  • Pack and protect your items securely.
  • Use appropriate packaging materials and sizes.
  • Bundle similar units together as required.
  • Pay attention to special requirements for small products.
  • Calculate product size, including packaging, and update your account accordingly.
  • Include proper labelings like UPC, FNSKU, and MSKU.

By following these guidelines, you can avoid running into Amazon Removal Fees, ensuring smoother operations and a better experience for you and your customers. Carefully considering your product and packaging requirements will make your inventory management more efficient, saving you time and resources in the long run.

Customer Service and Amazon Removal Fees

Amazon’s Removal Fee applies when you, as a seller, decide to remove your unsold inventory from Amazon’s warehouse. This fee is charged per item removed and can vary depending on the size of the item when it is returned or disposed of.

How to Monitor Customer Feedback?

Monitoring customer feedback is important to satisfy customers and maintain a good reputation. You can do this through Seller Central, where you can find customer ratings and review information. Acting on negative feedback and addressing any issues can help you improve your customer service and the overall shopping experience you provide.

How to remove inventory from Amazon?

You might need to remove inventory from Amazon’s warehouse when managing returns. You can create a Removal Order through Seller Central and choose between returning the inventory to you or having Amazon dispose of the items. Remember that each removal option comes with associated fees, as mentioned earlier. Removing from your inventory takes some time.

The processing time for Removal Orders can take up to 30 days or more, with fulfillment within 14 business days.

Monitor your FBA inventory

As a seller on Amazon, be aware of these fees, monitor your inventory levels, and promptly address customer feedback. Balancing the costs of removal fees with efficient customer service can be challenging, but it can also lead to a better shopping experience for your buyers and increased sales for your business.

Third-Party 3PL Logistics Vs. Amazon Fulfillment Inventory Management

When diving into the world of e-commerce, you’ll need to decide whether using third-party logistics (3PL) or Amazon fulfillment services is the right choice for your business. Both options have their own advantages and drawbacks, affecting aspects such as pricing, storage, and order fulfillment.

Third-party logistics (3PL)

Third-party logistics (3PL) providers are external companies that manage various aspects of a business’s supply chain, including inventory management, storage, fulfillment services, shipping, and return logistics. By choosing a 3PL, you can customize the services according to your specific needs and maintain more control over your inventory and fulfillment processes.

Pricing for 3PL services usually consists of storage and warehousing costs and labor fees for handling inventory. These fees can be based on a flat or hourly rate, depending on the 3PL provider and the complexity of your supply chain requirements.

Amazon fulfillment

Amazon fulfillment, on the other hand, is a service provided by Amazon through their Fulfillment by Amazon (FBA) program, which allows sellers to outsource the entire order fulfillment process, from storage and packing to shipping and returns. Amazon’s fulfillment centers take care of all aspects of order fulfillment, while sellers only pay for fulfillment and storage fees.

Amazon’s pricing model

Amazon’s pricing model for FBA is fairly simple: fulfillment fees are all-inclusive, covering picking, packing, and shipping costs. Additionally, Amazon offers up to 50% discounts on multi-unit orders, which helps keep fulfillment costs low. Storage fees are calculated based on the size and duration of stored items.

Charged fees

However, it’s essential to note that Amazon also charges sellers various commissions and fees for listing and selling products on its platform. For example, the company takes a 15% commission on most sales and recently introduced an additional 2% fee for indie fulfillers.

Ultimately, the choice between third-party logistics and Amazon fulfillment depends on factors such as your business size, specific needs, and level of involvement in the fulfillment process. Weigh the costs, benefits, and logistical considerations to determine which option best suits your ecommerce business.

Policy on Damaged and Unsellable Amazon Inventory

When dealing with Amazon’s FBA program, it is crucial to understand the policies regarding damaged and unsellable inventory. Items can be categorized as unfulfillable due to damage, expiration, or other factors. In such cases, sellers must decide how to handle this unsellable stock.

Removal or Disposal

Amazon provides two primary options for addressing damaged and unsellable inventory: removal or disposal. As a seller, you must submit a removal order within 30 days after the returned item is registered at the fulfillment center. This allows you to retrieve your inventory and decide how to proceed.

Disposal fee

Should you choose to dispose of your inventory, Amazon charges a disposal fee. This fee varies depending on factors like the size and weight of the items. Typically, the fee for disposing of a standard-sized item is around $0.15 per unit, while the fee for disposing of oversized items is about $0.50 per unit. You should carefully weigh your options and consider disposal fees when handling unsellable items.

Aged inventory surcharge

Making these decisions promptly is essential, as Amazon charges aged inventory surcharge storage fees for unsellable items. These fees can quickly accumulate, impacting your profits. Moreover, Amazon uses the cubic footage of the items in storage to calculate these fees, making it more expensive for sellers with bulky items.

How to remove products from Amazon FBA?

When you need to request the removal of inventory from Amazon FBA, follow these steps.

Remove products from Amazon FBA

  1. Log in to your Amazon Seller Central account: Access your dashboard to begin the process.
  2. Navigate to Inventory: Within the inventory, select the “Manage FBA Inventory” option.
  3. Choose the listing: Find the product listing you wish to remove, and click on the dropdown arrow next to the “Edit” option.
  4. Initiate removal order: Follow the guided removal order steps, providing all the required information, such as the ship-to address.
  5. Monitor the process: Once Amazon processes your removal request, you’ll receive a tracking number to monitor the shipping process.

How to Cancel a Removal Order?

In the event you change your mind or make an error while creating a removal order, here’s how you can cancel it.

Cancel Remove orders

  1. Access your Seller Central account: Log in to your Amazon Seller Central.
  2. Navigate to Orders: Find and click on “Manage Removal Orders”.
  3. Locate the order: In the list of your removal orders, find the one you want to cancel.
  4. Cancel the order: Click on the “Cancel” button or link associated with that particular order. Note: Ensure that the order hasn’t already been processed or shipped.

How to Automate Removal Orders on Amazon?

To ensure a seamless inventory management experience, you can automate removals for unsellable products.

Remove order

  1. Log in to Amazon Seller Central: Start by accessing your account.
  2. Head to Settings: In the top right corner, locate and click on the “Settings” link.
  3. Choose Fulfillment by Amazon: This will lead you to the FBA-specific settings.
  4. Navigate to Automated Long-Term Storage Removals: Here, you can set up your preferred rules for automating removals.
  5. Specify preferences: Choose whether you want unsellable products to be automatically returned to you or disposed of by Amazon.
  6. Save settings: Once you’ve made your selections, ensure you save the settings to enable automation.

Remember, automating removal orders can save time and ensure you don’t incur unnecessary long-term storage fees. However, always monitor these settings to align them with your business needs.

Environmental Impact of Amazon’s Disposal Practices

Amazon’s Disposal Impact on the Environment

The environmental consequences of Amazon’s disposal practices are becoming increasingly significant. When sellers opt for disposal over removal, it often leads to a higher volume of waste in landfills. This not only contributes to environmental degradation but also goes against the global shift towards sustainability. With the world focusing more on eco-friendly practices, it’s essential for sellers to be aware of the environmental footprint their choices might leave.

Amazon and the Push for Sustainable Practices

Amazon, as a leading e-commerce giant, has a responsibility to promote sustainable practices. The choice of disposal over removal can be seen as contradictory to this responsibility, especially when considering the vast amount of inventory that gets discarded.

Regional Differences in Amazon Removal Fees

Amazon Fee Variations Across Marketplaces

Amazon Removal Fees are not consistent across all its marketplaces. For instance, the charges in Amazon US might differ from those in Amazon UK or Amazon India. These regional differences can be attributed to various factors, including operational costs, local regulations, and market dynamics.

Understanding Amazon’s Pricing Structure Globally

Sellers need to be aware of these regional variations to effectively manage their inventory and costs. By understanding the regional nuances in Amazon’s pricing structure, sellers can make informed decisions about inventory management across different marketplaces.

Alternative Solutions to Amazon’s Removal and Disposal

Exploring Alternatives to Amazon’s Disposal Fees

Beyond the standard options of removal or disposal, sellers might consider other strategies. For instance, liquidation or partnering with third-party logistics (3PL) providers can be viable alternatives. These options can help sellers minimize waste and potentially recover some costs.

Amazon and Inventory Management Alternatives

Effective inventory management is crucial in e-commerce. By exploring alternatives to Amazon’s standard removal and disposal practices, sellers can optimize their operations, reduce costs, and align with sustainable practices.

Future Predictions for Amazon’s Fee Structures

Anticipating Changes in Amazon Fees

Given the historical changes in Amazon’s fee structures, sellers can expect further adjustments in the future. These might be influenced by factors like inflation, operational costs, and shifts in e-commerce trends.

Amazon’s Pricing Evolution and News Updates

Staying updated with Amazon’s news and announcements is crucial for sellers. As the e-commerce landscape evolves, Amazon might introduce new policies or adjust existing ones, impacting fees related to inventory management, advertising, and more.

Amazon Removal Fee FAQ

What is the Amazon removal fee?

The Amazon removal fee is a charge that sellers incur when they request Amazon to return or dispose of their inventory from Amazon’s fulfillment centers. This fee covers the costs associated with handling, processing, and, if chosen, disposing of the goods.

How much is the FBA inventory removal fee?

The FBA inventory removal fee varies based on the size and type of item.

Standard-size items:

  1. 0 to 0.5 lb: $0.97 per item
  2. 0.5+ to 1.0 lb: $1.46 per item
  3. 1.0+ to 2.0 lb: $2.20 per item
  4. More than 2 lb: $2.83 + $1.06 for every pound above 2 lb

Oversize and special handling items:

  1. 0 to 1.0 lb: $3.12 per item
  2. 1+ to 2.0 lb: $4.07 per item
  3. 2.0+ to 4.0 lb: $5.56 per item
  4. 4.0+ to 10.0 lb: $9.43 per item
  5. More than 10.0 lb: $13.05 + $1.06 for every pound above 10 lb

Does Amazon removal fee include shipping?

Yes, the removal fee typically covers the cost of shipping the items from the Amazon fulfillment center to the designated address provided by the seller.

How can sellers efficiently track items that need to be removed from Amazon’s fulfillment centers to avoid unnecessary removal fees?

Sellers can utilize Amazon Seller Central’s inventory management tools to monitor the age and status of their inventory. By setting up regular checks and alerts for items approaching long-term storage thresholds, sellers can proactively decide which items should be removed. Additionally, integrating third-party inventory management software can provide more in-depth insights and automation, ensuring that products are removed timely, and unnecessary removal fees are avoided.

Why does Amazon charge closing fees?

Amazon charges closing fees as a part of its cost structure for individual items sold on its platform. This fee applies to media items like books, DVDs, music, video games, and software and helps cover Amazon’s share of the transaction processing costs.

How long does Amazon FBA removal take?

The processing time for Amazon FBA removal orders can vary. Generally, it can take up to 30 days or more, with fulfillment often happening within 14 business days. This time frame may change based on the volume of requests and other operational factors.

How much is the removal order fee on Amazon UK?

The removal order fee in Amazon UK may differ from that in other regions. As with the U.S., the fee is determined by the size and type of item. For accurate and up-to-date pricing, sellers should consult the FBA fee schedule specific to Amazon UK on Seller Central.

What is Amazon FBA removal?

Amazon FBA removal refers to the process by which sellers request Amazon to return or dispose of their inventory stored in Amazon’s fulfillment centers. This process removes items when they are damaged, expired, or deemed unsellable.

Who pays Amazon FBA fees?

Amazon FBA fees are the responsibility of the seller who utilizes Amazon’s Fulfillment by Amazon (FBA) service. The fees cover various costs, including storage, picking, packing, and shipping of products.

Is it cheaper to use FBA?

Whether using FBA is cheaper depends on various factors, such as volume of sales, storage needs, shipping costs, and more. While FBA simplifies the process and often offers prime shipping, it comes with associated fees. Sellers should do a cost analysis comparing FBA to self-fulfillment or third-party logistics to determine the most economical choice for their business.

How do I create a removal order?

To create a removal order:

  1. Log in to Amazon Seller Central.
  2. Navigate to the “Manage FBA Inventory” section.
  3. Identify the product listing you want to remove and select the corresponding dropdown menu next to “Edit.”
  4. Follow the on-screen steps to complete the removal order.

This way, you can remove any products from your inventory.

How much do you have to waste on Amazon to get free shipping?

The amount required to qualify for free shipping on Amazon can vary based on various factors, such as membership status (e.g., Amazon Prime members) and the region or country of order. Historically, non-Prime members had to meet a minimum order threshold to qualify for free shipping. This threshold may change, so customers should check Amazon’s shipping policies for the most recent requirements.

Does Amazon pay for shipping to the warehouse?

No, sellers are generally responsible for the cost of shipping their inventory to Amazon’s fulfillment centers. However, Amazon offers a program called the “Amazon Partnered Carrier program,” where sellers can access discounted shipping rates with specific carriers for sending inventory to Amazon.

How do I make an Amazon removal order?

Making a removal order follows the same steps as creating one:

  1. Access your Amazon Seller Central account.
  2. Go to the “Manage FBA Inventory” section.
  3. Find the product you wish to remove and click the dropdown next to “Edit.”
  4. Proceed through the provided steps to finalize the removal order.

How to Calculate Other Amazon Fees using FBA Calculator?

Use MarketGap Product Research tools. It can greatly assist in calculating and understanding Amazon fees. To begin, input the ASIN or product identifier into the FBA calculator. This calculator tool will provide detailed information on referral fees, variable closing fees, and other costs associated with selling on Amazon. For an accurate estimate, include the product’s cost of goods, shipping fees to Amazon fulfillment centers, and any additional costs incurred. By analyzing these fees, sellers can better understand their profit margins and pricing.

This video shows how the MarketGap’s FBA calculator browser plugin works:

How often does Amazon update its removal and disposal fee structures?

Given the article mentions changes in fees, readers might be curious about the frequency of these updates.

What are Amazon’s environmental initiatives or programs to offset the environmental impact of disposal practices?

The article touches on the environmental implications of disposal, but it would be interesting to know if Amazon has any countermeasures or initiatives.

How do Amazon’s removal and disposal fees compare to other major e-commerce platforms?

Sellers might be interested in a comparative analysis to decide where to sell based on the removal fees.

Are there any tax implications or benefits for sellers when choosing disposal over removal, especially if the Amazon inventory is written off as a loss?

Financial implications beyond the immediate fees or charges might interest sellers.

How does Amazon handle hazardous or restricted items when it comes to removal or disposal?

Understanding the nuances of handling specific types of items on Amazon could be crucial for some Amazon sellers when it comes to removing or disposing of various products.

Pin it
Author: Denes

Leave a Comment

Your email address will not be published.

You may use these HTML tags and attributes: <a href=""> <abbr> <acronym> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Send a Message