Amazon FBA Removal Orders: Don’t Dispose, Turn Them Into Cash
I’ve been selling on Amazon since 2018, and during that time, I’ve seen countless updates and policy shifts—storage limits, fees, advertising rules, you name it. But when it comes to removal orders, returns, disposals, and excess inventory, very little has actually changed. Sellers are still left with the same painful question: What do we do with all this returned and unsellable stock?
Unfortunately, too many sellers simply click “Dispose” in Seller Central. I’ve personally watched good products—even unopened inventory—end up in landfills just because sellers didn’t have a better system.
That’s why I built REMEX Liquidation. It’s a program created by a seller, for sellers, to help turn removal orders and returns into cash instead of trash.
Why Sellers Need a Better System
Amazon’s scale means returns are inevitable:
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The average return rate across U.S. e-commerce is 16.5% (NRF, 2023).
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In categories like electronics or fashion, it can be as high as 25–30%.
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Even if just 5% of your annual sales turn into unsellable returns, that can wipe out thousands in profit.
Annual Sales | Return Rate | Unsellable Returns Value | Potential Recovery w/ Liquidation (30–50%) |
$500,000 | 10% | $50,000 | $15,000–$25,000 |
$1,000,000 | 8% | $80,000 | $24,000–$40,000 |
$5,000,000 | 5% | $250,000 | $75,000–$125,000 |
Return Pallet - FBA Removal Order pallet
Case Study: A $1M Seller
One of the sellers we’ve worked with in Dallas was doing about $1M in annual sales in the home goods category. Here’s what happened:
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Roughly 8% return rate, leading to $80,000 worth of returns annually.
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Seller was paying $1,200 per month in extra storage fees to keep unsellable items.
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By liquidating through REMEX, they recovered around $28,000 in just six months—money that would have otherwise been lost.
This recovery didn’t just add cash back into their account; it allowed them to reinvest in faster-moving SKUs and launch two new product lines.
How It Works
1.
Removal - We receive your unfulfillable inventory or returns directly from Amazon FBA.
2.
Processing at REMEX - Our system manages, sorts, and prepares your inventory for resale.
3.
Resale to Buyers - Inventory is resold through our wholesale and recommerce channels.
4.
Payout - Get paid every 15th with an invoice via the REMEX Portal, with full sales transparency
My Perspective as a Seller
Of course, liquidation isn’t the only answer. I still recommend sellers occasionally route removal orders back to their own warehouse so they can:
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Inspect damage/complaint patterns.
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Improve packaging and product durability.
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Adjust listings to reduce customer confusion.
But chasing 0% returns is unrealistic. Reports show that overly strict return policies actually hurt conversion rates and may increase customer dissatisfaction. The real goal is balance: reduce unnecessary returns while maximizing recovery on the ones that do occur.
amazon return inspection & resell - Remex.ai
Seller’s Reality: Why Returns Become a Bigger Problem Than Expected
Most FBA sellers face three main challenges with removal orders and returns:
1.
No Time – Sellers are busy managing new product launches, PPC, and inventory flow. They simply don’t have time to process open-box or used returns.
2.
Hard to Manage – Returns come in mixed conditions (damaged box, missing accessories, open packaging). Sorting and handling is complex and labor-intensive.
3.
No Place to Sell – There’s no easy marketplace for mixed-condition items. Amazon doesn’t support it, and most sellers don’t have a secondary sales channel.
The result? Even small quantities of returns start piling up, and losses from disposal often outweigh actual profit margins. In fact, for many sellers, return & disposal costs exceed their monthly advertising spend.
This is exactly why REMEX exists—to take away the burden and turn those “unwanted” items into cash recovery.Looking Ahead
This is a conversation I want to keep having with the seller community. That’s why I’ll be writing more blogs like this—and also launching a podcast where we can discuss these challenges openly: returns, liquidation, storage fees, and all the messy parts of being an FBA seller that Amazon doesn’t really solve.
REMEX is just one part of the solution, but the bigger mission is to help sellers stop wasting money and start treating removal orders as an opportunity.
If you’ve faced similar challenges—or have strategies of your own—I’d love to connect and share insights.
Remex Sungsu Kim
Written By Sungsu Kim - CEO of Remex Liquidation (skim@remexliquidation.com)
Hashtags
#AmazonFBA #RemovalOrder #FBAreturns #Liquidation #EcommerceStrategy #AmazonSellers #InventoryManagement #EcommerceGrowth
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