Amazon has introduced two new Fulfillment by Amazon (FBA) programs designed to make it easier for businesses selling on Amazon to resell customer-returned items or overstock inventory while also giving more products a second life.
These programs are part of Amazon’s commitment to both small businesses and sustainability by providing another way for sellers to profit from selling on Amazon while helping to build a circular economy. Once fully rolled out, we expect these programs to give more than 300 million products a second life each year.
“Customer returns are a fact of life for all retailers, and what to do with those products is an industry-wide challenge,” said Libby Johnson McKee, director, Amazon WW Returns, ReCommerce and Sustainability. “These new programs are examples of the steps we’re taking to ensure that products sold on Amazon—whether by us or our small business partners—go to good use and don’t become waste. Along with existing programs like FBA Donations, we hope these help build a circular economy, maximize reuse, and reduce our impact on the planet. And we’re excited that these programs will also help the businesses selling on Amazon reduce costs and grow their businesses—it’s a win for our partners, customers, and communities."
FBA Liquidations gives sellers the option to use Amazon’s existing wholesale liquidation partners and technology to recoup potential losses on returned and overstock inventory. The program is now live in U.S., Germany, France, Italy and Spain, and soon the UK.
Prior to this new program, a seller would need to have these items sent back to them or have Amazon donate the product on their behalf. Now businesses selling on Amazon have a new hassle-free way to recover some value from returned and overstock items through selling items in bulk while also doing their part for the environment.
Selling partners who want to resell returned items can take advantage of a second program FBA Grade and Resell, which is now available in the UK and will be available in the U.S. by end of year, and in Germany, France, Italy and Spain by early 2022. This program gives third party sellers the option to sell returned products on Amazon as “used” items instead of having the items sent back to them or donated.
When an item is returned, sellers can choose to automatically route it to this new program. Amazon will then evaluate the item and assign it one of four standard conditions: Used - Like New, Used - Very Good, Used - Good, and Used - Acceptable. Sellers then set the price for items based on the condition and manage pricing, advertising, and sales using their existing processes, just as they do for their new items.
As these programs roll out in the U.S. and Europe, Amazon has received positive feedback from sellers. One seller in the U.S., SoundPEATS Audio, shared, “We think these programs are helpful for businesses selling on Amazon. Some sellers, including our business, don't have the third-party warehouse to easily accept returned inventory or hold on to overstock inventory. Before we would have to dispose of inventory, but now we’re able to give it a second life and make money off it.”
FBA Donations, which rolled out in 2019 and 2020 in the U.S., the UK, and France, is another easy, automatic way for selling partners to donate their returned or overstock inventory. The entire FBA Donations process is “hands off” for sellers—from coordination to delivery. Amazon uses its supply chain and operational expertise so that the right items get to the right pre-vetted charity partners to help more people in need benefit. The program also gives as many products as possible a second life and reduce waste. Since the program’s launch, Amazon has helped sellers donate over 67 million items such as household and school supplies to recipients through our charity partners, including Good360, Age UK, Secours Populaire, and more.
These programs are just several of the many sustainability initiatives across Amazon, including The Climate Pledge—the company’s commitment to net zero carbon by 2040, and 100% renewable energy by 2025. Amazon is also committed to giving products a second life through programs like its discount store for used products, Amazon Warehouse; the Amazon Outlet store for discounted excess inventory; Amazon Renewed for refurbished products; and for certified refurbished and used Amazon devices Pre-Owned Amazon Devices. Each of these stores saves customers money while also helping the planet.
Sellers interested in participating in this program, or for those who want to take advantage of shipping, storage, removals, and returns with Fulfillment by Amazon, can visit Amazon Seller Central.