Amazon pushes FBA Liquidations to help sellers recover value from unsold inventory
Seller Central update highlights how Amazon sellers can reduce storage costs, avoid disposal fees, and recover part of their inventory value through liquidation partners
By ChannelMAX Staff Writer
May-2026#18
Amazon has announced a renewed push for its FBA Liquidations program, giving sellers another option to recover value from excess, unfulfillable, and customer-returned inventory stored in Fulfilment by Amazon warehouses. The update was shared through Seller Central and is aimed at helping sellers reduce long-term storage pressure while improving inventory management.
The program allows eligible sellers to liquidate unsold inventory through Amazon’s contracted liquidators instead of paying removal or disposal fees. According to Amazon, sellers can recover approximately 5–10% of a product’s average selling price before fees, although the actual recovery amount may vary depending on product category, demand, and condition.
The move comes as many sellers continue to face rising storage costs, aged inventory surcharges, and operational pressure to maintain healthier inventory levels inside Amazon warehouses.
How the FBA Liquidations program works
Under the FBA Liquidations program, sellers can choose liquidation as a removal option for eligible inventory directly from Seller Central. Once the request is submitted, Amazon arranges for contracted liquidators to purchase the inventory.
Amazon stated that sellers receive the net recovery value after applicable fees are deducted. Payments are generally processed within around 60 to 90 days.
One major benefit highlighted in the Seller Central announcement is that monthly storage fees and aged-inventory surcharges stop accruing once the liquidation order is submitted. This can immediately reduce cost pressure for sellers holding slow-moving inventory.
Also Read: Amazon updates buyer satisfaction survey for self-ship sellers with new 1-5 rating system
The program is currently available for:
-Overstock inventory
-Customer-returned inventor
-Unsellable inventory
-Idle fulfillable inventory
-Inventory stored in Return Centers
-Inventory stored in Outbound Fulfillment Centers
However, hazardous products and counterfeit items are not eligible for liquidation.
Fees sellers should know before using liquidation
Amazon clarified that two main fees apply when sellers use the FBA Liquidations service.
The first is a processing fee, which depends on item size and weight. Standard-size products may incur fees between approximately $0.25 and $0.40 per item, while oversize or special-handling products may cost between $0.60 and $1.90 or more.
The second is a referral fee equal to 15% of the gross recovery value.
Because of these deductions, sellers are advised to carefully compare liquidation recovery with other options such as outlet deals, discounts, multi-channel sales, or inventory removal.
Why the update matters for Amazon sellers
The latest Seller Central update is especially important for sellers dealing with aging inventory ahead of peak shopping seasons and future inbound shipments. Excess inventory not only increases storage costs but can also affect Amazon’s inventory performance metrics.
For many sellers, liquidation may now serve as a strategic inventory-cleanup tool rather than a last-resort disposal option.
Industry experts often recommend that sellers regularly review stranded, excess, and slow-moving inventory reports to avoid long-term storage penalties. Products with low sell-through rates, seasonal demand drops, or high return rates are usually the best candidates for liquidation.
Sellers can also use Amazon’s Inventory Age and Excess Inventory reports to identify products that are becoming financially inefficient to hold.
How sellers can enable liquidation settings
Amazon said sellers can activate liquidation preferences through their automated removal settings in Seller Central. Sellers can choose liquidation as their preferred removal method and modify preferences anytime.
Before enabling the feature, sellers should:
i) Review eligible inventory categories
ii) Calculate expected net recovery after fees
iii) Compare liquidation with discounting strategies
iv) Monitor aged inventory surcharge timelines
v) Track high-return ASINs separately
For private-label sellers, liquidation may also help free warehouse space faster for better-performing products.
Amazon’s latest Seller Central announcement around FBA Liquidations highlights the company’s growing focus on inventory efficiency and warehouse optimization. While liquidation recovery rates remain relatively low, the program can still help sellers reduce storage costs, avoid disposal expenses, and recover partial value from unsold inventory that may otherwise continue generating fees.
For Amazon sellers struggling with overstock, high return volumes, or aging inventory, the FBA Liquidations program may offer a practical way to improve cash flow and warehouse efficiency while preparing for future inventory cycles.
Also Read: Amazon urges sellers to upload certifications to reach high-value B2B buyers
Disclaimer:
Amazon is the registered trademark of the company.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
By ChannelMAX Staff Writer
May-2026#18
Amazon has announced a renewed push for its FBA Liquidations program, giving sellers another option to recover value from excess, unfulfillable, and customer-returned inventory stored in Fulfilment by Amazon warehouses. The update was shared through Seller Central and is aimed at helping sellers reduce long-term storage pressure while improving inventory management.
The program allows eligible sellers to liquidate unsold inventory through Amazon’s contracted liquidators instead of paying removal or disposal fees. According to Amazon, sellers can recover approximately 5–10% of a product’s average selling price before fees, although the actual recovery amount may vary depending on product category, demand, and condition.
The move comes as many sellers continue to face rising storage costs, aged inventory surcharges, and operational pressure to maintain healthier inventory levels inside Amazon warehouses.
How the FBA Liquidations program works
Under the FBA Liquidations program, sellers can choose liquidation as a removal option for eligible inventory directly from Seller Central. Once the request is submitted, Amazon arranges for contracted liquidators to purchase the inventory.
Amazon stated that sellers receive the net recovery value after applicable fees are deducted. Payments are generally processed within around 60 to 90 days.
One major benefit highlighted in the Seller Central announcement is that monthly storage fees and aged-inventory surcharges stop accruing once the liquidation order is submitted. This can immediately reduce cost pressure for sellers holding slow-moving inventory.
Also Read: Amazon updates buyer satisfaction survey for self-ship sellers with new 1-5 rating system
The program is currently available for:
-Overstock inventory
-Customer-returned inventor
-Unsellable inventory
-Idle fulfillable inventory
-Inventory stored in Return Centers
-Inventory stored in Outbound Fulfillment Centers
However, hazardous products and counterfeit items are not eligible for liquidation.
Fees sellers should know before using liquidation
Amazon clarified that two main fees apply when sellers use the FBA Liquidations service.
The first is a processing fee, which depends on item size and weight. Standard-size products may incur fees between approximately $0.25 and $0.40 per item, while oversize or special-handling products may cost between $0.60 and $1.90 or more.
The second is a referral fee equal to 15% of the gross recovery value.
Because of these deductions, sellers are advised to carefully compare liquidation recovery with other options such as outlet deals, discounts, multi-channel sales, or inventory removal.
Why the update matters for Amazon sellers
The latest Seller Central update is especially important for sellers dealing with aging inventory ahead of peak shopping seasons and future inbound shipments. Excess inventory not only increases storage costs but can also affect Amazon’s inventory performance metrics.
For many sellers, liquidation may now serve as a strategic inventory-cleanup tool rather than a last-resort disposal option.
Industry experts often recommend that sellers regularly review stranded, excess, and slow-moving inventory reports to avoid long-term storage penalties. Products with low sell-through rates, seasonal demand drops, or high return rates are usually the best candidates for liquidation.
Sellers can also use Amazon’s Inventory Age and Excess Inventory reports to identify products that are becoming financially inefficient to hold.
How sellers can enable liquidation settings
Amazon said sellers can activate liquidation preferences through their automated removal settings in Seller Central. Sellers can choose liquidation as their preferred removal method and modify preferences anytime.
Before enabling the feature, sellers should:
i) Review eligible inventory categories
ii) Calculate expected net recovery after fees
iii) Compare liquidation with discounting strategies
iv) Monitor aged inventory surcharge timelines
v) Track high-return ASINs separately
For private-label sellers, liquidation may also help free warehouse space faster for better-performing products.
Amazon’s latest Seller Central announcement around FBA Liquidations highlights the company’s growing focus on inventory efficiency and warehouse optimization. While liquidation recovery rates remain relatively low, the program can still help sellers reduce storage costs, avoid disposal expenses, and recover partial value from unsold inventory that may otherwise continue generating fees.
For Amazon sellers struggling with overstock, high return volumes, or aging inventory, the FBA Liquidations program may offer a practical way to improve cash flow and warehouse efficiency while preparing for future inventory cycles.
Also Read: Amazon urges sellers to upload certifications to reach high-value B2B buyers
Disclaimer:
Amazon is the registered trademark of the company.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.