What To Do With Unsold Amazon FBA Inventory Amazon Seller Tips & Strategies
author
Feras Al-Musa
published
April 3, 2025
Lets talk about unsold Amazon FBA inventory
One of the things I love most about Amazon FBA is how hands-off it is—at least compared to other eCommerce models.
After doing this for so many years, I rarely stop to think about just how much inventory I’ve sent off or how many orders I’ve fulfilled.
Back when I was selling on eBay, I had a precise count of every item I shipped because I was packing and mailing each order myself. But with Amazon FBA, it’s easy to lose track of how much stock I’ve sent to their warehouses.
Amazon, however, keeps tabs on every unit. While it’s great that they handle storage and fulfillment, they don’t want unsold Amazon FBA inventory sitting around collecting dust.
Their goal is to keep products moving—not to run a long-term storage facility.
So, how do we end up with inventory that just won’t sell?
After all, every seller starts out expecting their products to move quickly and turn a solid profit.
Even the most strategic and experienced sellers—those who carefully research and source their inventory—will occasionally find themselves stuck with aging stock and unsold inventory. If that’s happened to you, don’t stress; it’s just part of the business.
The good news? As third-party sellers, we have plenty of ways to manage unsold inventory.
Let’s dive into why keeping track of your aging stock is so important and explore the best strategies to deal with it effectively.
Why You Need to Pay Attention to Unsold Amazon FBA Inventory
Ignoring unsold and old inventory sitting in Amazon’s FBA warehouses can cost you more than you think. While it’s easy to focus on sourcing new products and making fresh sales, those unsold units are quietly eating into your profits.
Amazon FBA storage isn’t free—long-term storage fees can pile up quickly, cutting into your margins. And if inventory sits too long, Amazon might hit you with additional penalties or even remove your products from their system.
Beyond the financial drain, stale inventory also affects your overall business health. Products that sit too long can lead to lower account health metrics, making it harder to scale. Plus, stagnant inventory ties up capital—money that could be better spent on high-performing products instead of collecting dust in a warehouse.
The sooner you take action, the more options you have. Whether it’s discounting, liquidating, or finding creative ways to move that inventory, keeping a close eye on aging stock ensures your business stays lean and profitable.
Let’s look at some smart strategies to deal with unsold inventory before it becomes a real problem.
Amazon’s fulfillment centers are designed for processing and shipping orders, not for acting as long-term storage units for third-party sellers. Their goal is to keep inventory moving, not to hold onto products indefinitely.
To encourage sellers to only send in items that will sell quickly, Amazon has built-in measures to “gently” nudge sellers away from stockpiling inventory. Of course, everyone aims to pick products with a strong sell-through rate, but even the most careful sellers can miscalculate demand or face unexpected market shifts.
If you have too much stagnant inventory in your account, Amazon will make sure you feel it—through extra storage fees.
The Two Key Storage Fees You’ll Pay
Amazon charges sellers two main types of storage fees for unsold and old inventory:
- Monthly Storage Fees – Applied every month to all inventory stored in Amazon’s warehouses.
- Long-Term Storage Fees (LTSF) – Kicks in after 180 days for inventory that hasn’t moved, making it even more expensive to keep unsold products sitting around.
These are separate from the regular per-item fees deducted from your sold inventory, and they can add up fast. Many sellers don’t realize how these fees accumulate until they see a major dent in their profits.
If you’re unsure about how these fees work, I’ve written a full breakdown in this blog post: Everything You Need to Know About Amazon’s Storage Fees.
The Bigger Issue: Tied-Up Cash
Yes, storage fees are frustrating, but the real issue with old inventory isn’t just the extra charges—it’s the money you have locked up in unsold products.
Every dollar tied up in aging inventory is a dollar that could be reinvested into faster-moving, profitable products. The longer your inventory sits, the slower your cash flow, and the harder it is to scale your business.
By managing your inventory wisely and taking action on slow-moving products, you can keep your business agile and your profits growing. Let’s talk about what you can do to move that old stock before it becomes a serious liability.
How to Check Your Unsold Amazon FBA Inventory in Seller Central
Before making any decisions about your slow-moving stock, it’s essential to have a clear view of your oldest unsold inventory—especially if you want to avoid unnecessary storage fees.
Amazon provides a simple way to track this information in Seller Central through the Inventory Dashboard. Here’s how to find it:
1. Navigate to the FBA Inventory Age Report
- Go to Seller Central > Inventory > Inventory Planning
- Click on FBA Inventory Age
2. Analyze Your Inventory by Age
Once you’re in the FBA Inventory Age section, you’ll see all your stored inventory categorized by how long it has been sitting in Amazon’s fulfillment centers.
To quickly identify problem stock:
- Sort by “Inventory Age” – This helps you pinpoint the oldest products in your inventory.
- Sort by “Estimated LTSF” (Long-Term Storage Fees) – This highlights which items will soon incur additional charges, allowing you to take action before fees pile up.
By using these filters, you can quickly spot which items have been sitting too long and need immediate attention.
Once you’ve identified aging inventory, it’s time to decide the best course of action—whether it’s running a promotion, adjusting pricing, liquidating, or removing stock. Taking action now can save you from costly fees and free up cash for better-selling products.
What to Do With Unsold Amazon FBA Inventory
If you’ve checked Seller Central and found a long list of unsold inventory, don’t panic—you have several options to deal with it.
Every seller operates with different strategies, margins, and business models, so some solutions may work better for you than others. I personally have my own go-to methods (which I’ll share), but I always assess my options on a case-by-case basis to find the most profitable or least costly solution.
Here are some of the best ways to handle excess FBA inventory:
1. Lower the Price to Move It Faster
If your inventory isn’t selling, it could be priced too high. Running a temporary price reduction or leveraging Amazon’s Automate Pricing tool can help clear out stagnant stock quickly.
2. Create a Promotion or Coupon
Sometimes, a small discount or coupon can be enough to encourage buyers to purchase your product. You can run a percentage-off deal, a buy-one-get-one offer, or an exclusive promo code to drive sales.
3. Use Amazon’s Outlet Program
If your inventory is eligible, Amazon allows you to list slow-moving products in the FBA Outlet Program, which offers exposure to deal-hunting shoppers at a discounted rate.
4. Increase Visibility with PPC Advertising
If a product isn’t selling, it might just need more visibility. Running Amazon PPC (Pay-Per-Click) ads can drive traffic and conversions, helping clear out old inventory faster.
5. Liquidate Your Inventory
Amazon provides an FBA Liquidations Program, where you can recover a portion of your cost instead of paying high storage fees. This is a great option if lowering the price or promotions haven’t worked.
6. Remove or Dispose of Inventory
If keeping the product in storage is no longer cost-effective, you can request a removal order to have Amazon return the stock to you—or opt for disposal if the product is no longer viable.
7. Sell on Other Platforms
If Amazon isn’t the best place for this product anymore, consider selling it on eBay, Walmart Marketplace, Facebook Marketplace, or your own website. You can even use Amazon’s Multi-Channel Fulfillment (MCF) to fulfill orders from other platforms.
Choosing the Best Option for Your Business
The right approach depends on your profit margins, storage costs, and how much capital you need to free up. I personally evaluate each product based on potential profitability, fees, and demand before deciding which strategy to use.
Whatever route you take, acting sooner rather than later will help you avoid excessive fees and keep your business running efficiently.
Removal Order Options: Liquidate, Dispose, or Return
If you have unsold inventory sitting in Amazon’s Fulfillment Centers, you have several ways to remove it. When creating a Removal Order in Seller Central, you’ll be presented with three options:
- Liquidate – Sell your inventory at a discounted rate through Amazon’s Liquidations Program.
- Dispose – Have Amazon destroy and discard your inventory for a small fee.
- Return – Have Amazon ship the inventory back to you.
1. Liquidate Inventory (Best for Recouping Some Costs)
Before considering disposal, check if your products are eligible for Amazon’s FBA Liquidations Program. This option allows you to recover a portion of your investment by selling your unsold inventory to bulk buyers at a discounted rate. While you won’t get back the full price, liquidation is better than paying storage fees or losing money entirely.
2. Dispose of Inventory (Best for Expired or Unsellable Products)
If an item is expired, defective, or completely unsellable, disposal might be the simplest choice. Amazon will remove and destroy the inventory for a small per-item fee, which will be deducted from your account within 45 days.
I personally use this option most often for expired products or items that I know aren’t worth reselling. Having them returned just adds unnecessary clutter, and trying to sell near-expired stock could lead to unhappy customers.
3. Return Inventory to You (Best for Reselling Elsewhere)
If you believe an item still has resale potential, you can request Amazon to return it to you. This option is useful if you plan to:
- Resell the product on another platform (eBay, Walmart Marketplace, etc.).
- Bundle it with other products to increase perceived value.
- Inspect and relist it if there’s an issue preventing sales on Amazon.
Keep in mind that return shipping fees apply, and large or heavy items can be costly to send back.
How to Create a Removal Order for Your Unsold Amazon FBA Inventory
There are multiple ways to initiate a Removal Order in Seller Central, but the most common method is through the Manage Inventory page:
- Go to Seller Central > Inventory > Manage Inventory
- Find the item you want to remove.
- Click the arrow next to “Edit” and select “Create Removal Order.”
- Choose Liquidate, Dispose, or Return, depending on your preferred strategy.
- Confirm your request, and Amazon will process the removal.
Final Thoughts on Unsold Amazon FBA Inventory
While there are additional strategies such as running PPC ads or cross-listing your inventory on platforms like eBay, the four options we’ve discussed should sufficiently address the needs of most Retail or Online Arbitrage FBA sellers.
My top recommendation is simple: avoid getting bogged down by unsold Amazon FBA inventory from “bad” purchasing decisions. It’s more productive to quickly clear out stagnant stock and reinvest the proceeds into new, more promising inventory.
However, if you consistently find yourself stuck with unsold items, it’s crucial to reevaluate your sourcing decisions. Leveraging analytical tools like Keepa and Inventory Lab can significantly help you understand sales ranks and profit margins. By regularly analyzing your inventory data, you’ll gain valuable insights that can prevent repeated mistakes.
What are your go-to strategies for managing unsold inventory? Share your thoughts and experiences in the comments below!
