Amazon Hazmat: Guide to Dangerous Goods

If you're an Amazon seller, you've likely experienced the frustration of having unsellable or Amazon excess inventory taking up valuable space in your fulfillment center. This can happen for a variety of reasons – perhaps the product is damaged or expired, or maybe it simply didn't sell as well as you had hoped. Whatever the reason, having unsellable inventory can be a major headache for sellers. Not only does it tie up your capital, but it can also negatively impact your seller metrics and reputation on Amazon, so it's important to know what to do. In this blog post, we'll answer all your questions about what to do with unsellable inventory, including how you can manage your Amazon FBA removal settings. So whether you're a seasoned pro or just getting started, read on for some helpful information and practical tips to deal with your unsellable inventory and excess inventory on Amazon.

What is Unsellable Inventory on Amazon

First, let's start with the basics: Unfulfillable inventory (a.k.a. unsellable inventory) includes any units that are not actively moving and have been sitting in your FBA warehouses for 180 days or more. This can include products that are expired, damaged, or defective, as well as products that do not meet Amazon's requirements for sale. In some cases, you may have received an unsellable inventory notification from Amazon, which means that the company has determined that one or more of your items is no longer eligible for sale on their platform. If you're wondering why; we have answers.

What Causes Unsellable Inventory on Amazon?

There are a few different reasons why you might end up with unsellable inventory on Amazon. At Lab 916, we find some of the most common reasons are that the product has become damaged or expired, which means it can no longer be sold as new. Another common reason sellers end up with unfulfillable inventory is that the product simply didn't sell as well as you had hoped – this can happen for a variety of reasons, such as poor marketing or incorrect pricing. (See: Marketplace Management for tips on how to improve sales.) If you're an FBA (Fulfillment by Amazon) seller, dealing with unsellable inventory can be especially tricky. This is because Amazon has very strict guidelines for what constitutes an unsellable item. If you violate these guidelines, you may face penalties or even have your account suspended.

Types of Unsellable Inventory

There are different types of unsellable inventory that may arise on Amazon. These include:

1. Expired products

These are products that have passed their expiration date and are no longer considered safe or effective for sale.

2. Damaged products

These are products that have been damaged in some way, whether during shipping, handling, or storage. This can include products with torn packaging, dents, scratches, or other forms of physical damage.

3. Defective products

These are products that are not functioning properly or as intended. This can include products with manufacturing defects, faulty components, or other issues that prevent them from being sold.

4. Non-compliant products

These are products that do not meet Amazon's requirements for sale, such as products that are prohibited by Amazon's policies or that are not properly labeled or packaged. In order to avoid any consequences, it's important to understand Amazon's FBA removal policies and have a plan in place for dealing with these types of unsellable or excess inventory.