FBA disposal order fees in 2024: What Sellers Need to Know

As an Amazon seller utilizing Fulfillment by Amazon (FBA), it's crucial to stay updated on the latest fee structures, especially when it comes to disposing of unsold or unwanted inventory. In 2024, Amazon has updated its disposal fees, affecting how sellers manage their FBA inventory.

In this guide, we'll break down the new Amazon disposal fees for 2024, explain how they're calculated, and provide strategies to minimize costs.

Understanding Amazon Disposal Fees

Disposal fees are charged per unit when you request Amazon to dispose of items in your FBA inventory stored at an Amazon fulfillment center. Alternatively, you can remove inventory by submitting a removal order to have it returned to you.

Key Details

• Frequency of Charge: One-time fee per disposal request.

• Time of Charge: When the disposal order is complete.

• Fee Structure: Based on the per-unit disposal rate, calculated according to the unit's shipping weight and size tier.

How Disposal Fees Are Calculated

Product Size Tiers

Amazon categorizes products into size tiers based on unit weight, product dimensions, and dimensional weight. Understanding your product's size tier is essential for accurate fee calculations.

• Standard Size

• Large Bulky, Extra-Large, and Special Handling Items* (previously called Oversize)

*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.

Shipping Weight

The shipping weight is calculated based on the unit's weight or dimensional weight, depending on which is greater.

• Standard Size under 1 lb: Rounded up to the nearest 0.1 lb.

• All Other Sizes: Rounded up to the nearest whole pound.

Fee Calculation Examples

Example 1: Standard-Size Item (0.5+ to 1.0 lb)

You request the disposal of two standard-size units, each with a shipping weight of 0.56 lb (rounded up to 0.6 lb).

• Per-Unit Fee: $1.53

• Total Fee: 2 units x $1.53 = $3.06

Example 2: Oversize Item (More than 10.0 lb)

You request the disposal of three oversize units, each with a shipping weight of 10.1 lb (rounded up to 11 lb).

• Per-Unit Fee: $14.32 + ($1.06 x (11 lb - 10 lb)) = $14.32 + $1.06 = $15.38

• Total Fee: 3 units x $15.38 = $46.14

How to Estimate Your Disposal Fees

To estimate your disposal fees:

1. Determine Your Product Size Tier: Use Amazon's guidelines or the Monthly Storage Fees report.

2. Calculate Shipping Weight: Based on unit weight or dimensional weight, whichever is greater.

3. Refer to the Rate Card: Find the applicable fee per unit.

4. Multiply by Quantity: Multiply the per-unit fee by the number of units you wish to dispose of.

Reporting and Tracking Fees

Keep track of your disposal fees through:

• Removal Order Detail Report

• Payments - Transaction View

These tools help you monitor costs and adjust your inventory management strategies accordingly.

Conclusion

Understanding the updated Amazon disposal fees in 2024 is essential for effective inventory management. By staying informed and proactive, you can minimize unnecessary costs and maximize your profitability on the platform.

Additional Resources : Amazon Help Page

If you need personalized guidance or help fine-tuning your strategies, Superfuel AI can assist. Our AI-powered assistant analyzes 36+ key Amazon metrics to identify and address the root causes of sales fluctuations, helping you optimize your storefront and boost sales. Reach out to us at [email protected].

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Ben Mathew, Amazon Expert

Ben Mathew is a co-founder at Superfuel, a sales assistant for Amazon sellers. In the past, Ben and his team of e-commerce specialists and software engineers have launched 40+ new brands on Amazon, taking them from zero to bestsellers. In his free time, he is either learning from other top sellers or encouraging his 3 daughters in their love for reading. He is reachable at ben [at] superfuel.io.

Frequently Asked Questions

How long does it take to dispose of inventory after creating a request?

Typically, disposal orders are processed within 14 business days. However, during peak periods like holidays, it may take 30 business days or more.

Can I cancel a disposal order once it's submitted?

No, once a disposal order is submitted, it cannot be canceled. Ensure you're certain before making the request.

Are there alternatives to disposing of my inventory?

Yes, you can choose to create a removal order to have your inventory returned to you or consider running promotions to liquidate stock.

Do disposal fees vary by marketplace?

Disposal fees can vary depending on the Amazon marketplace. Always check the specific fees for the marketplace you're selling in.