FBA New Selection Programme Now Includes Free Liquidations, Replaces Funded Disposals
Amazon’s FBA New Selection programme now offers free liquidations effective immediately, replacing the funded disposal benefit. Sellers can liquidate surplus inventory at no fee and recover roughly 5‑10% of the original price, avoiding the previous $0.30 per‑unit disposal charge.
Overview
Amazon has refreshed the FBA New Selection programme by adding a free‑of‑charge liquidation option and removing the previously funded disposal benefit. The change takes effect immediately and gives newer sellers a way to recoup a portion of the value from excess or returned stock without paying liquidation fees. Sellers who struggle with demand forecasting will find the new tool useful for keeping inventory costs under control.
Key Points
- Free liquidations added — Enrolled sellers can now liquidate surplus or customer‑return inventory at no fee, starting today.
- Funded disposals removed — The programme no longer pays for disposal services; any future disposals will be billed at standard rates.
- Partial revenue recovery — Liquidated items are sold to wholesale buyers for roughly 5 %–10 % of the original selling price, providing a modest cash return.
- Storage fee mitigation — By moving unwanted stock to secondary markets, sellers can avoid long‑term storage surcharges that accumulate on aging inventory.
- Sustainability alignment — Liquidations keep products in circulation, supporting Amazon’s environmental goals compared with outright destruction.
- Eligibility unchanged — The same criteria that qualify sellers for free monthly storage and free removals continue to apply for the new liquidation benefit.
How FBA Liquidations Work
- Create a liquidation order — From Seller Central, the seller selects the SKU(s) to liquidate, specifies the quantity, and submits a request. For example, a seller with 200 units of a seasonal kitchen gadget that has been in a fulfillment center for 12 months can initiate a liquidation order for the entire batch.
- Amazon matches to a pre‑approved liquidator — Amazon’s system automatically pairs the request with a vetted wholesale liquidator that purchases the inventory at wholesale rates. In the example, the kitchen gadget batch is matched with a liquidator specializing in home‑goods clearance.
- Seller receives proceeds — After the liquidator confirms receipt, Amazon credits the seller’s account with the sale proceeds, minus any applicable deductions such as transportation or handling fees. The seller in the example would see a credit equal to about 6 % of the original list price for each unit, less a nominal processing fee.
Analysis & Recommendations
Why This Matters
Free liquidations let sellers recoup $1‑$2 on a $20 unit (5‑10% recovery) instead of receiving $0 from funded disposals, and they avoid the $0.30 per‑unit disposal fee. This also helps prevent long‑term storage surcharges, protecting margins for New Selection participants.
Key Takeaways
- Free liquidations are now available at no charge, starting today.
- Funded disposals have been removed; future disposals will be billed at standard rates (~$0.30 per unit).
- Liquidated items generate 5‑10% of the original selling price, e.g., $1‑$2 per $20 unit.
- Sellers can use the Inventory Health report to spot candidates and avoid long‑term storage fees.
Recommended Actions
- →Check enrollment: Seller Central > Settings > Program Participation and confirm a green check‑mark for “FBA New Selection”.
- →Identify liquidation candidates: run the “Inventory Health” report under Inventory > Inventory Planning.
- →Create a liquidation order: go to Inventory > Manage Inventory, select SKUs, choose “Create Liquidation” and submit the request.
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