As cross-border e-commerce sellers gear up for peak season, Amazon has introduced a significant policy change that demands immediate attention. The marketplace recently announced adjustments to its FBA (Fulfillment by Amazon) inventory management system, substantially shortening the automatic removal timeline for unsellable inventory.
This policy shift means sellers must now monitor their stock more vigilantly and act promptly to avoid financial losses. Imagine carefully selected products shipped to Amazon warehouses with high expectations, only to become unsellable due to various reasons. If these items remain too long, they'll be automatically removed—resulting in lost product value and potential disruptions to sales strategies.
Key Changes to the Policy
Effective October 14, 2022, Amazon will automatically remove unsellable inventory that remains in fulfillment centers for more than 14 days. This marks a significant reduction from the previous 30-day window. Additionally, removal frequency will increase from monthly to twice per month, accelerating the disposal process for non-viable merchandise.
Unsellable inventory refers to products that cannot be offered to customers due to damage, defective packaging, labeling errors, expiration, or other quality issues. These items occupy valuable warehouse space and negatively impact inventory turnover efficiency. Amazon's policy adjustment aims to optimize warehouse operations and improve overall fulfillment performance.
Implications for Sellers
The new rules impose stricter inventory management requirements on third-party sellers. Merchants must now:
- Monitor inventory status more frequently
- Identify and address unsellable items within the 14-day window
- Take appropriate action (removal, disposal, or refurbishment) before Amazon's automatic removal
Industry analysts suggest Amazon's move serves dual purposes: improving warehouse utilization to reduce operational costs while enhancing customer experience by preventing the sale of substandard products. For sellers, successful adaptation requires strengthened inventory controls and improved product quality to minimize unsellable stock.
Recommended Strategies for Compliance
Cross-border e-commerce sellers can implement these measures to navigate the new requirements:
- Conduct weekly inventory audits: Check unsellable stock status at least once per week
- Enhance product quality: Improve manufacturing standards and packaging durability
- Ensure accurate listings: Maintain precise product descriptions to prevent return issues
- Act on unsellable items: Quickly request removal or disposal to avoid long-term storage fees
- Consider alternative storage: For high-value items, establish overseas warehouses or local return centers
Amazon's updated FBA inventory policy presents new challenges for marketplace sellers. Those who strengthen their inventory management systems and operational efficiency will be best positioned to maintain competitiveness in this evolving e-commerce landscape.