What is Unfulfillable Inventory?

Before diving into the automated removal feature, it’s crucial to understand what unfulfillable inventory actually means. Unfulfillable inventory refers to items that cannot be fulfilled for sale on Amazon due to issues such as:

1. Defective or Damaged Products: Items that arrive at Amazon’s warehouses damaged or are reported as damaged during the fulfillment process.
2. Expired Products: Items with a shelf life that has expired or fallen below Amazon’s acceptable standards.
3. Ineligible Products: Products that may not meet Amazon’s quality standards, such as those that are in the wrong condition or were improperly packaged.
4. Customer Returns: Items returned by customers that cannot be resold, either because they are generally damaged or the product has been opened or used.
5. Inventory Stranded in Amazon’s Warehouse: Items that are not sellable due to issues such as incorrect product listings or failing to meet Amazon’s category restrictions.

Why Use Automated Unfulfillable Removal?

Automated Unfulfillable Removal allows sellers to take the hassle out of managing unfulfillable inventory. Here are several reasons why you should consider using this feature:

1. Time-Saving: Manually removing unfulfillable inventory can be a time-consuming process. Automation speeds up this task, allowing sellers to focus on other critical aspects of their business.
2. Inventory Optimization: Keeping unfulfillable inventory in your account occupies space and can lead to additional fees. By removing these items, you can optimize your storage limits for sellable products.
3. Cost Efficiency: Holding onto unsellable items can cost you in various fees, such as long-term storage fees. Automated removal minimizes these costs by frequently clearing out inventory that cannot generate revenue.
4. Better Account Health: Amazon monitors your seller account metrics. By proactively removing non-sellable inventory, you can maintain healthier performance metrics, which can enhance your seller reputation.
5. Automated Process: Once set up, the system runs on its own according to the criteria you’ve chosen, eliminating the need for ongoing management.

How to Set Up Amazon’s Automated Unfulfillable Removal

Setting up the Automated Unfulfillable Removal feature on Amazon is a straightforward process. Here’s how to do it step-by-step:

Step 1: Log into Your Amazon Seller Central Account

To access the Automated Unfulfillable Removal settings, you need to first log into your Amazon Seller Central account. This platform is your command center for managing your sales, inventory, and the various tools Amazon offers to enhance your selling experience.

Step 2: Access the Inventory Settings

1. Once logged in, navigate to the “Inventory” tab in the top menu.
2. From the drop-down options, select “Manage Inventory.” This section allows you to manage not only your fulfillable but also your unfulfillable stock.

Step 3: Determine Unfulfillable Remedies Strategy

Before setting the automated feature, it is essential to establish your strategies regarding how you want Amazon to handle your unfulfillable inventory. The options include:

• Automatic Removal: Automatically remove unfulfillable inventory from your Amazon warehouse.
• Inventory Disposal: States that items are to be disposed of rather than sent back to you.
• Return to Seller: Specifies that Amazon should return unsellable inventory back to you.

Step 4: Set Up Automated Unfulfillable Removal

1. In the “Manage Inventory” page, look for the “Settings” icon, usually represented as a gear or wrench.
2. Click on it and select “Fulfillment by Amazon” (FBA) settings.
3. Within the FBA settings, find the section titled “Automated Unfulfillable Removal.”
4. Here, you can set your preferences for how you want to handle your unfulfillable inventory.
5. Confirm the criteria for the removal, including frequency (weekly, monthly, etc.) and whether to dispose of the inventory or return it to you.

Step 5: Save Your Settings

After configuring your settings, be sure to click “Save.” This action activates the Automated Unfulfillable Removal feature according to your criteria.

Step 6: Monitor and Adjust

Once the system is active, regularly monitor how well it’s working for you. Pay attention to how much inventory it’s removing and any potential impacts on your sales and account health metrics. Adjust your settings as necessary based on observed performance.

Tips for Using Amazon’s Automated Unfulfillable Removal

While using Amazon’s Automated Unfulfillable Removal can simplify your inventory management significantly, there are best practices you can adopt to optimize its effectiveness:

1. Regularly Review Inventory Levels:
   • Regular review helps ensure that you maintain an optimal stock level of fulfillable items, preventing situations where your inventory becomes overruns with unfulfillable items.
2. Maintain Quality Control:
   • Implement stringent quality checks during packaging and shipping to Amazon’s warehouses. This practice minimizes the chances of sending defective products and reduces the volume of unfulfillable inventory.
3. Know Your Products:
   • Stay informed about your inventory and its requirements. Understanding what products can become unfulfillable will help you manage risks more intelligently and adjust your listings proactively.
4. Consider Return Policies:
   • Review your return policies and procedures for dealing with product returns effectively.
5. Timely Pricing Adjustments:
   • Dynamic pricing can help you sell off inventory that may otherwise become unfulfillable due to seasonality or changing market conditions. Set alerts to adjust your prices as necessary.
6. Utilize Amazon’s Reporting Tools:
   • Make use of reports and analytics provided by Amazon. The “Inventory Performance Index” (IPI) metric can offer insights into your inventory’s performance and highlight areas for improvement.

Amazon’s Automated Unfulfillable Removal feature can be a game-changer for sellers dealing with unsellable inventory. It saves time, reduces costs, and improves account health while allowing you to focus on growing your business. By understanding how to set up and optimize this feature, along with adhering to quality control measures and utilizing Amazon’s reporting tools, you can effectively manage your inventory and enhance your selling strategies on Amazon’s platform