⁉️ Are you struggling with these inventory issues?

❓ Q1. New products that do not meet sales expectations, products that have long been out of season, products returned by customers... the backlog is in the warehouse and can't be sold?

❓ Q2. Storage capacity is in a hurry, and may they have to bear high storage overage fees?

❓ Q3. The peak season is about to begin, but due to product entry restrictions, is the replenishment plan affected?

Inventory management is a matter that requires long-term supervision and optimization by sellers in line with their own business conditions. In particular, it is essential for sellers to clean up excess inventory in a timely manner. When cleaning up excess inventory, in addition to promotional methods such as outlet deals, price reduction promotions, advertising promotions, etc., the most direct method is probably to remove inventory and dispose of inventory.

But remove the inventory, and if the seller doesn't have an overseas warehouse, where?It's a pity to dispose of inventory and just throw away good products. Today, Xiaobian will introduce you to a new channel for inventory clean-up: Amazon Logistics batch clearance plans, which not only help sellers absorb excess inventory and products returned by buyers, avoid storage fees, prevent inventory from being discarded, but also recover part of the cost of the product! Currently, the program is officially launched on Amazon's US, Germany, France, Spain, and Italy sites.

Dispose of inventory?If you use the Amazon Logistics batch clearance program to process it, you can also recover part of the cost of the product. The Amazon Logistics Bulk Clearance Program is one of Amazon's projects to clean up excess inventory. It aims to help sellers handle excess inventory and customer returns, avoid storage fees and disposal fees, prevent waste, and recover part of the cost of the product.

Disposing of inventory not only causes waste, but also requires disposal fees. A bulk clearance program can help you recover 5%-10% * of the value of your products, provide you with positive revenue, and help reduce the cost of disposing of your inventory.

Once you submit a bulk clearance order for eligible inventory, Amazon will no longer charge monthly storage fees and long-term storage fees for that inventory to help reduce the multiple costs associated with excess inventory.

Third-party purchasers who help you dispose of excess inventory have contracts with Amazon, so you can rest assured that your bulk cleared products will not be directly resold on Amazon.

Through this program, you can reduce excess or overage inventory, thereby helping to increase sell-through rates, positively impacting your inventory performance index scores, and contributing to inventory health.

As long as your products meet the following conditions, they can be cleaned up through the Amazon Logistics Bulk Clearance Program, but judging from the cost of the products recovered, it is more suitable for the inventory you originally planned to dispose of or destroy.

▲ Products must comply with the destination country's local laws, safety, and regulatory guidelines.
▲ They cannot be dangerous goods, products that have passed the expiration date, products that are easy to melt, categories requiring approval, products prohibited by Amazon Logistics, and other restricted products prohibited for sale.
▲For unsellable inventory, only products that are due to “buyer damage”, “carrier damage”, or “dealer damage” can apply for the program. Products that are due to “expired”, “defective”, and “damaged in the warehouse” do not meet the requirements.

Amazon will evaluate the average selling price (ASP) of your inventory using several factors:

1 ️ CY YOUR SALES HISTORY
2 ️ ︎ Average price sold through Amazon Logistics on the Amazon website
3 ️ ︎ Sales history for this specific ASIN

The Amazon German/France/Italy/Spain site requires sellers to activate the VAT Calculation Service (VCS) before they can clean up inventory through this program.

According to the contract rate, a third-party wholesale shipper will purchase this inventory based on the total recycling value, accounting for approximately 5% to 10% of its average selling price (up to 20% at European sites).

🚩 Please note: This ratio is for reference only, but actual results may vary due to differences in contract rates with third party bulk shippers. Amazon does not guarantee the amount you can actually recover.

Generally, for products cleaned up through this program, Amazon will charge the following two separate fees:

▲ Product handling fee: calculated per item, the specific cost of each item depends on the size and weight of the product
▲ Referral fee: It is charged according to the sales commission ratio for each category of Amazon Logistics

Analysis:
▲ If discarded, he is required to pay 0.25 Euros for each discarded item.
▲ If batch clearance is used, each item can be recovered 5.22 euros, and the recovery amount accounts for 10.44% of the average selling price of the product.

Analysis:
▲ If discarded, he is required to pay 0.25 US dollars for each discarded item.
▲ If batch clearance is used, each product can be recovered 0.99 US dollars, and the recovery amount accounts for 5% of the average sales price of the product.

The European site Amazon Logistics bulk clearance program currently does not charge any fees!European sellers can take this opportunity to experience the program for free and clean up inventory. Once the European site confirms the billing period for the program, it will be announced separately.

There is no separate registration for this program; when you create a removal order in Seller Central, simply select the removal method as “bulk clearance” (Liquidation in English: Liquidation). In three simple steps, you can easily create a bulk clearance order and use the Amazon Logistics Bulk Clearance Program to clean up excess inventory.

Go to Seller Central and visit the “Inventory Planning” page. You can “create a removal order” for the selected products by selecting one or more ASINs that need to be removed from the “Manage Excess Inventory” page, “Amazon Logistics Storage Age” page, “Fix Amazon Inventory with No Active Information” page, etc. Alternatively, you can download the Recommended Removal Report to review the products Amazon has recommended for removal.

On the “Create Removal Order” page, under the “Select Removal Method” module, select “Bulk Clearance”, fill in the quantity of products to be cleared (“sellable quantity” or “unsellable quantity”), then click “View” to enter the order check page.

If “cannot be removed” is displayed on the page, you can click to see the exact reason.

The system will prompt you to review and confirm the removal order details.

Once everything is checked, click Confirm to complete the creation of the removal order.

💡 Please note: Once a bulk clearance order has been submitted, it cannot be cancelled.

You can follow the steps described below to track the bulk clearance order that has been submitted and view the amount of the recovery value.

▲ Track bulk clearance orders

The Inventory Performance Index Score (IPI) measures your efficiency and productivity in managing your FBA inventory, and excess inventory can have a negative impact on your Inventory Performance Index score. Once a removal order has been submitted to the Amazon Logistics Bulk Clearance Program, the order will appear as “Pending” in the Removal Order Details Report. Inventory that is pending removal does not influence or adversely affect your IPI score. By completing bulk clearance orders, sellers can reduce excess or overage inventory, which in turn helps you increase sell-through rates and positively impacts your inventory performance index scores.

A purchaser who has signed a contract with Amazon is responsible for reselling Amazon's own inventory and Amazon Logistics inventory to downstream consumers. According to the contract, the clearers cannot directly resell Amazon Logistics bulk clearance products on Amazon, and they cannot return the cleared inventory to you; they will resell the cleared inventory through other e-commerce or offline channels.

After submitting a clearance order, there is a short period of time between “submit clearance order” and “inventory moved to reserve” status. During this time, you can use your inventory to fulfill customer orders. If you use your inventory to ship customer orders while awaiting clearance, you'll receive the amount of the item's normal sale instead of the clean-up payment.

Amazon may have different contracted liquidation rates by warehouse. If you submit a clearance order for multiple items of an ASIN, and these products are in multiple warehouses, Amazon will try to dispose of the item that provides you with the highest recycling value first.

Amazon Logistics inventory currently stored in the UK cannot be cleared in bulk for the time being. As soon as this option becomes available, we will keep you informed through Amazon's official channels.

Meeting. European sellers are required to sign up for Amazon VAT Calculation Service (VCS) if they want to join the program. This free service provides you with billing and VAT calculation reporting functionalities. Please visit the Seller Central Help page for more details.

You can go to Seller Central and visit the US site page and the European site (Germany/France/Italy/Spain ) page to learn more about the “Amazon Logistics Bulk Clearance Program”.

Amazon is also actively developing more projects that can help sellers recover inventory costs. It is hoped that these projects will help sellers maximize product value, avoid the costs associated with excess inventory and improve your cash flow, and also eliminate the costs required to return or dispose of unsold products, reduce inventory costs while reducing waste as much as possible, and reducing carbon emissions.