Fulfilment By Amazon removal and disposal fee changes
Amazon recently announced that they are making a few changes to how sellers using FBA will be charged via their Fulfilment Centre removal and disposal rates in Europe. The changes will come to effect on the 3rd September 2019.
At the moment, removing stock from Amazon’s warehouses is an expensive option for sellers, however the new charges may make disposal fees more costly depending on the weight. This will have a big impact on sellers, especially those with high returns, as your unsaleable inventory is automatically disposed of unless Amazon are told otherwise, or you set a removal order. There are a few exceptions where Amazon will cover the cost of an unsaleable return, for example, if they lose it in transit or a customer damages the product.
For every customer return, Amazon inspects the item and checks whether it can go back into the inventory. If they feel it can’t go back, it will be listed in your unsellable inventory. Unless you remove this stock, Amazon will dispose of it after a certain amount of days adding more costs.
You can choose to have unsaleable inventory returned to you automatically by enabling the service through your settings in your Seller Account. This week Amazon also announced that FBA sellers will have their unwanted stock opted in to a new programme named FBA Donations which makes it easier for 3P sellers to donate their unsold inventory to charities. The programme will also launch this September and will initially start in the US and UK. Donating will be the standard option for stock disposal, with goods only being destroyed if the seller opts out. It is our belief that FBA Sellers will still be charged the same amount as disposal if they are nonetheless enrolled in FBA Donations.
The 4 changes to FBA removal & disposal fees:
- Domestic removal fees: Reduction of removal fees for standard-size and oversize units in UK fulfilment centres. For fulfilment centres in Spain, the removal fee for oversize items will increase.
- Disposal fees: An increase of disposal fees on units stored in the UK, Germany, France, Italy, Spain, Poland, and Czech Republic. The rates will be based on unit weight and size.
- Cross-border removal fees: Reduction of cross-border removal fees on units stored in the UK, Germany, France, Italy, Spain, Poland, and Czech Republic.
- FBA Donations: All unwanted but usable stock will automatically be enrolled into being donated to a charity unless explicitly opted out.
These charges will only affect Sellers with FBA only. Removal & disposal fees do not apply to Vendor accounts. Vendors have a returns agreement with Amazon regarding disposal, replacements and overstock returns.