When dealing with unsold inventory, liquidation offers a valuable solution. By understanding what is an Amazon liquidation store and how does Amazon liquidation work, you can recover costs and free up space for new products. This guide will walk you through the types of liquidation stores, important considerations for sellers like you, and the process for making a liquidation order.
What Are Amazon Liquidation Stores?
Amazon Liquidation Stores are specialized marketplaces where surplus, returned, or overstocked inventory from Amazon and other retailers is sold at discounted prices. These stores serve as a channel for liquidating excess merchandise, creating a win-win situation for sellers and buyers.
How Do Amazon Liquidation Stores Operate?
You may be thinking, what is Amazon liquidation store doing with my stuff?
Liquidation Amazon stores acquire inventory through various channels, including customer returns, overstock items, and refurbished products. Sellers looking to clear out excess stock or returned items often liquidate through these specialized platforms. Amazon will arrange a buyer for your excess stock that needs liquidation. The FBA liquidators are verified wholesale liquidators who sell Amazon-owned and FBA products to downstream consumers. Since Amazon enforces contractual agreements with these liquidators, they are prohibited from reselling those liquidated items on Amazon. This process not only provides buyers with discounted products but also ensures that sellers can efficiently clear their inventory.
Types of Amazon Liquidation Stores
Online Store Run by Amazon
Amazon bulk liquidation stores, also known as Amazon liquidation bin stores, sell items in bulk, often on Amazon liquidation pallets, directly to customers. These pallets may include overstock items (new and unopened) or returned goods (from customers or damaged during processing).
Independent Liquidation Stores
These are separate businesses that purchase excess inventory from Amazon and other retailers in bulk, then sort and resell the items, often at discounted prices. These stores can be physical locations or online marketplaces.
Advice for Sellers Considering Amazon Liquidation
VAT Registration
Sellers must be enrolled in the VAT calculation service and possess a verified VAT registration number from the country of inventory/storage.
Exclusions
Dangerous goods and recalled inventory are not eligible for liquidation.
Recovery Value
The maximum recovered value for liquidated items typically ranges from 5% to 20% of the average selling price.
Cancellation Policy
Sellers can cancel their liquidation orders, and the items will be returned to them.
Fees
A 15% liquidations referral fee applies, based on the item’s gross recovery value, along with a processing fee that varies by size and weight.
How To Make a Liquidation Order
To create a removal order to liquidate excess stock, follow these steps:
- Go to the Inventory Planning Page. Select one or more ASINs, click “Action,” and choose “Create removal order.”
- At the Recommended Removal Report, click on “Begin removal process.”
- Specify Quantities: enter the number of units you wish to liquidate.
- Optionally, you can create a bulk liquidation order at this point.
- Review the details and confirm the liquidation order.
Other Ways To Deal With Unsold Inventory
Amazon liquidation stores can be a game-changer for sellers looking to manage unsold inventory effectively. By leveraging these specialized marketplaces, you can recoup costs and create space for new products.
However, while liquidation through Amazon is one strategy to tackle excess stock, other approaches are available to help you manage unsold inventory. You can explore them in our previous blog post.
