Amazon Replaces Free Disposals With Free Liquidations in FBA New Selection Program
Amazon’s FBA New Selection program now replaces free disposals with a free liquidation service. Sellers can liquidate aged, stranded or returned units at zero charge and receive 5‑10% of the retail price (e.g., $2‑$3 per $30 unit). The liquidation cost is covered by the existing free‑removals benefit.
Overview
Amazon has refreshed the FBA New Selection program, swapping the former free‑disposal perk for a no‑cost liquidation option. The change lets sellers in the program move excess or returned units to approved wholesale buyers without incurring fees, while still receiving a modest payout. New and growing sellers should note the shift because it offers a more valuable safety net when testing inventory that may not sell as expected.
Key Points
- Free liquidations added — Enrolled sellers can now liquidate inventory at zero charge, with the cost covered under the program’s existing free‑removals benefit.
- Free disposals removed — Amazon no longer funds the destruction of unsold stock through the program, redirecting that budget to the liquidation service.
- Partial value recovery — Instead of paying to discard items, sellers receive a percentage of the product’s wholesale value when a liquidator purchases the goods.
- Automatic matching with buyers — Amazon automatically links eligible inventory to pre‑approved wholesale liquidators, eliminating the need for sellers to find buyers themselves.
- No extra fees for enrolled sellers — The liquidation service is bundled with the free‑removals benefit, so participants incur no additional charges for using it.
How Liquidations Work Under the Program
- Eligibility check — A seller reviews the FBA New Selection dashboard and selects inventory that is aged, stranded, or returned. For example, a seller with 150 units of a seasonal gadget that has been in storage for 180 days flags those units for liquidation.
- Amazon matches to a liquidator — The system automatically pairs the flagged SKU with one of Amazon’s vetted wholesale buyers. In the gadget example, the item is sent to a liquidator that specializes in electronics and purchases it at a wholesale rate.
- Inventory is shipped out — Amazon picks up the designated units from its fulfillment center and delivers them directly to the liquidator’s warehouse, bypassing any return to the seller. The seller does not need to arrange transportation or handle the goods themselves.
Analysis & Recommendations
Why This Matters
The free liquidation lets sellers recoup a portion of value from unsellable stock, offsetting long‑term storage fees and reducing total loss compared to pure disposal. With payouts of 5‑10% per unit, a 200‑unit SKU can generate $40‑$60 credit, improving profit margins for new sellers.
Key Takeaways
- Free liquidations are now part of the FBA New Selection program, replacing free disposals.
- Sellers receive 5‑10% of the retail price as a credit when a liquidator purchases the inventory.
- The service is bundled with the free‑removals benefit, so no extra fees are charged to enrolled sellers.
- Payouts typically appear within 30‑45 days after the liquidator confirms receipt.
Recommended Actions
- →In Seller Central, go to the FBA New Selection dashboard, select aged/stranded SKUs and toggle the liquidation option.
- →Verify enrollment in the program under Account Settings > FBA New Selection and enable the liquidation service.
- →Monitor the Inventory Health report for liquidation transactions and reconcile credits within 30‑45 days.
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