Amazon FBA inventory marked “Unfulfillable” is a common operational issue for sellers, meaning the inventory cannot be sold or shipped through the Amazon platform. Failure to address this issue promptly not only results in extra storage space and costs, but can also impact store performance.
In this article, Weefreight will provide a detailed analysis of the core causes of unfulfillable inventory, the recovery process, and preventative strategies, rather than presenting it in a table format.
- Core Reasons for FBA Unfulfillable Inventory
Amazon determines unfulfillable inventory based on factors such as the physical condition of the inventory, compliance, and platform regulations. These reasons are categorized as “Seller’s Responsibility,” “Amazon’s Responsibility,” and “Other Reasons.” The handling and compensation mechanisms vary depending on the responsible party.
- Seller Responsibilities
This type of unsaleable item is caused by negligence on the seller’s part during shipping or operational operations, primarily including:
The item itself is defective or damaged, and the problem existed before shipment, such as scratches, cracks, or malfunctions.
The packaging does not meet requirements, such as damaged outer boxes or insufficient internal cushioning resulting in damage to the item, or incorrect, missing, or unclear product labels.
The shipped item does not match the listing information, such as the wrong model or specification, or the actual appearance or functionality of the item does not match the listing description.
The item is expired or nearing its expiration date but has not been addressed in advance, which does not meet Amazon’s selling standards.
The item does not meet Amazon’s category specifications, such as being prohibited from sale on the platform or lacking mandatory certification (such as CE certification for appliances or CPC certification for toys).
- Amazon’s Responsibility
This type of unsaleable items is caused by operational errors in Amazon’s warehousing, sorting, and delivery processes, primarily including:
Product damage during storage or sorting at Amazon’s fulfillment centers, such as damage to the outer shell caused by bumps during handling or deformation caused by squeezing.
Product labeling issues caused by Amazon’s operational errors, such as missing labels or incorrectly affixed ASIN labels, which prevent the product from matching the corresponding listing.
Amazon lost inventory and later recovered it, but the inventory status was abnormal (such as damaged packaging or missing accessories) and could not be restored to a sellable state.
- Other Reasons
In addition to the responsibilities of both the buyer and the seller, there are also external or policy factors that may cause unsaleable items:
Products cannot be resold after being returned by the buyer. For example, although there are no quality issues after the buyer unpacks the product, it does not meet Amazon’s “new product” sales standards, or minor damage was caused during the return process.
Product removal due to platform policy adjustments, such as updated safety standards that force the original product to be marked as unsaleable because it does not meet the new requirements.
- Steps for Viewing and Diagnosing Unfulfillable Inventory
First, you need to pinpoint the specific information of unfulfillable inventory in Amazon Seller Central to provide a basis for subsequent processing. The steps are as follows:
Log in to Amazon Seller Central and go to [Inventory] – [Manage Inventory].
Select [Inventory Status] – [Unfulfillable] in the filter bar at the top of the page to view a list of all unfulfillable inventory.
Click [View Details] for a specific product and find the specific reason (such as “Damaged” or “Label Missing”) in the [Reason for Unfulfillable] section.
Also, review the [Inventory Event Details] to confirm the time, location, and responsible party for the inventory status change (some events will be clearly marked “Amazon Error,” indicating Amazon’s responsibility).
III. Restoration Process for Unsaleable Inventory (Situation-Based)
Based on whether it can be restored and who is responsible, restoration strategies can be categorized as “direct restoration,” “claim restoration,” or “forgo restoration,” requiring targeted actions.
- Self-Repairable Situations (Primarily the Seller’s Responsibility)
If the unsaleable inventory is due to issues like labeling problems or minor packaging damage that can be easily resolved, you can use “Create a Removal Order” to retrieve the inventory, repair it, and then re-enter the warehouse to restore it to a sellable state.
Steps:
Go to [Inventory] – [Manage FBA Inventory] – [Unsaleable Inventory], select the items to be processed, and click [Create Removal Order].
Select the removal method as “Deliver to Address,” enter your warehouse or a receivable address, and pay the corresponding removal fee (charges are calculated based on product weight or number of pieces).
After receiving the inventory, address the issue: If the label is missing or incorrect, reprint and apply the FBA label; if the packaging is slightly damaged, replace it with compliant packaging; and ensure that the product itself has no quality issues and meets warehousing standards.
After the repair is complete, create a new shipping plan through [Send to Amazon], package and ship according to Amazon’s requirements, and the inventory will return to “Sellable” status after shipping.
Applicable scenarios: Missing, incorrectly affixed, or blurred labels; minor packaging damage but the product itself is intact; product compliance issues can be resolved with simple adjustments (such as adding label information).
- Required Amazon Claims (Amazon Liability)
If the unsellability issue is due to Amazon-caused damage, lost and found in an abnormal condition, or other issues attributable to Amazon, there’s no need to repair the inventory yourself; you can request compensation through “Amazon FBA Claims.”
Claim Requirements:
The inventory must be damaged, lost, or in an abnormal condition within an Amazon fulfillment center, and Amazon’s system can track the relevant records.
Submit a claim within 90 days of discovery; submitting a claim after this deadline may result in Amazon rejecting the claim.
Steps:
Go to [Performance] – [FBA Claims].
The system will automatically identify and display “Inventory Eligible for Claims” (i.e., where Amazon has confirmed liability). Simply click [Submit Claim] for the corresponding product.
If the system doesn’t automatically identify the claim, click [Manually Submit Claim] and enter the product ASIN, the specific reason for unsaleability, and relevant evidence (such as screenshots of the inventory incident details, photos of the damaged product, order history, etc.).
After submitting your claim, wait for Amazon to review it, which typically takes 3-5 business days. Once approved, compensation will be credited to your account as an “Account Balance.” The compensation amount is generally the average selling price of the product less any related fees.
Note: If your claim is rejected, you can review the rejection reason in [Claim History] and resubmit it with additional evidence (such as clearer photos of the damage or screenshots of shipping records).
- Cases Where Restoration Isn’t Required (Direct Disposal of Inventory)
If the item is severely damaged beyond repair, expired, or the cost of repair exceeds the item’s value, there’s no need to attempt restoration. Instead, dispose of the item promptly to avoid incurring long-term storage fees. There are two common methods for disposing of the item:
Dispose: Select the “Dispose” option when creating a removal order, and Amazon will destroy the inventory. This method is significantly less expensive than the “Ship to Address” option and is suitable for low-value items where repair is unnecessary.
Donate: Some Amazon marketplaces (such as major ones in the US and Europe) allow you to donate unsaleable inventory to participating charities. Choosing this method not only waives disposal fees but also offers tax deductions in some regions. Simply select the “Donate” option when creating a removal order.
IV. Preventative Strategies for Unsaleable Inventory (The Key is “Preemptive Prevention”)
Rather than wasting time dealing with unsaleable inventory after the fact, it’s better to reduce the occurrence of unsaleable inventory through standardized operations upfront. The core preventative measures are as follows:
Strict quality control before shipment:
Ensure that the products themselves are free of quality defects and conduct sampling inspections before shipment. Packaging must comply with Amazon FBA packaging standards. For example, fragile products should be adequately cushioned with bubble wrap or foam, and liquid products should be sealed to prevent leaks.
Standardized Labeling: Use waterproof and wear-resistant label paper to print FBA outer box labels and product labels. Ensure labels are clear and accurately positioned (apply outer box labels to flat corners of the box, and avoid barcodes and seams for product labels) to prevent labels from falling off or becoming blurred.
Monitoring Inventory Status After Warehousing:
Regularly (weekly is recommended) review the [Unsaleable Inventory] list to identify and address issues promptly. This will prevent inventory from being left idle for long periods of time, resulting in high monthly storage fees and long-term storage fees (additional long-term storage fees will be charged for inventory stored for more than 180 days).
For products nearing their expiration dates, use promotions, clearance sales, and bundled sales to reduce inventory and reduce unsaleable items due to expiration.
Strictly Match Listings and Shipments:
Before shipping, double-check the product’s ASIN, model, specifications, and appearance to ensure they match the listing description. This will prevent “wrong shipments” that could lead to unsaleable items.
If product information changes (such as packaging upgrades or feature adjustments), update the listing immediately and include a note when shipping to avoid Amazon identifying it as “information discrepancies” during review.
Comply with regulations:
Research Amazon’s product category entry requirements in advance, especially for strictly regulated categories like 3C electronics, maternity and baby products, and beauty products. Ensure your products have the required certifications (such as UL and FDA certifications) to avoid being removed from the shelves due to compliance issues.
V. FAQs
Will unsaleable inventory incur storage fees?
Yes. Unsalable inventory, like sellable inventory, incurs monthly storage fees. If stored for more than 180 days, additional long-term storage fees will apply. Therefore, timely handling is crucial to minimize costs.
Can I claim compensation from Amazon if a buyer returns an item that’s unsalable?
This depends on the circumstances. If the return reason is “product not as described” or “quality issues” and the seller is responsible, no claim is available. If the item is damaged or mishandled in the Amazon warehouse after the buyer returns it, you can submit a claim to Amazon by providing relevant evidence (such as post-return status records).
Can unsalable inventory be restocked after removal?
Yes, but you must ensure that all issues that caused the unsalable inventory have been completely remedied (e.g., label compliance, intact packaging, no product defects, and compliance with category requirements). After remediation, recreate a shipping plan and ship the item. Once the shipping review is passed, the inventory will be restored to sellable status.
In short, the core principle for handling unsellable FBA inventory is “diagnose the cause first, then assign responsibilities”—repairable items should be promptly retrieved and restocked, Amazon’s liability claims should be decisively pursued, and unvalued items should be promptly disposed of or donated. Furthermore, reducing the generation of unsellable inventory at the source through early quality control, inventory monitoring, and compliant operations can minimize operational losses.
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