FBA Liquidation and Donation Programs: Fees Overview
As an Amazon seller using FBA, we all know how managing overage or dormant inventory is a core function of the business. Sometimes, products don’t move as we expect, or some seasonal products become sluggish. This often forces sellers to incur a storage fee and a decision about what to do with the excess stock builds up.
For this reason, Amazon has two primary solutions: the FBA Liquidation program and the FBA Donation program. Both unsold inventory solutions have different functionalities. One provides a partial refund and the other allows sellers to donate to charities.
For many novice sellers, the FBA liquidation and donation program enrollment charges remain a mystery. The good news is there is no enrollment or sign up fee. Although, there are some costs linked to using the service, like the order handling fee, disposal fee, and Amazon’s cut.
This guide will cover how the charges work, the benefits each program offers, and how to find the most effective one for your business.
What is the FBA Liquidation Program?
The FBA Liquidation Program is Amazon’s strategy for assisting sellers to regain some value from leftover stock. Rather than paying for the disposal or storage of stagnant inventory, you can sell those items to liquidators via Amazon.
When you request liquidation, Amazon processes the request with their vetted partners and liquidators who purchase the stock from you, usually at a discounted rate. Typically, sellers only earn a small share, around 5–10% of the average selling price. While that is a small amount, it is better than paying more for storage fees or disposal costs.
What is the FBA Donation Program?
This program allows Amazon to deal with unsold stock that sellers prefer to write off as losses. When a seller opts for the donation option, the merchandise is forwarded to charitable institutions via Good360 and other partner organizations.
This allows a business to reduce inventory one way while supporting a social cause. Rather than tossing stock, there are people who can use the items. Each seller receives a donation certificate yearly, which allows them some tax benefits in certain countries.
Enrollment Fees for FBA Liquidation and Donation Program
For most sellers, the most important thing to think about is the costs. Let’s take a look at the enrollment and per-unit fees for all the programs.
Is There an Enrollment Fee?
Both programs have no enrollment fees.
Both FBA Liquidation and FBA Donation are part of the Amazon FBA ecosystem.
Sellers just have to pick them from the “Inventory Removal Options” dropdown menu.
This means no-paid join and no-paid activate is required. Fees only apply when you use liquidation or donation.
Fees for FBA Liquidation
Now, let’s delve into the most important topics—fees for FBA liquidation.
Amazon Commission:
Amazon charges about 15% of the gross recovery value of your products when they are liquidated.
Processing Fees:
To cover Amazon’s costs for preparing and shipping goods to liquidators, per-unit handling and processing fees are applied.
Net Recovery Amount:
Sellers usually receive 5-10% of the average selling price after all the fees are deducted.
Illustration:
Take a product that has a selling value of 20 dollars. Liquidation for that product will only be able to recover 1-2 dollars after the fees are deducted.
Both the case study and example illustrate that while liquidation is not the most lucrative option, it is better than unnecessary long-term storage or having to pay to discard it.
FBA Donation Charges
There are no registration fees for the FBA Donation program, though sellers incur a standard per-unit disposal fee.
FBA Donation Charges
Amazon charges roughly $0.15 for each item donated, though this fee is subject to change by area and item size.
No Commission
Amazon does not charge a commission for donated items, unlike for liquidations.
Tax Deduction
Sellers receive an annual donation certificate through Good360, which aids in tax savings.
Illustration:
If a seller chooses to donate 100 items, the estimated cost in donation fees would be $15. In this case, the seller would benefit by not having to pay for storage and not having the items go to waste.
Reasons Sellers Choose FBA Liquidation
To try to retrieve some value for stale stock.
To prevent hefty long-term storage fees.
To declutter slow moving SKUs.
To convert “dead stock” into cash flow, no matter how low the figure is.
Reasons Sellers Choose FBA Donation
To lower waste and donate to a non profit.
To improve the social responsibility perception of the brand.
To eliminate cost associated with storage and disposal.
To receive tax advantages through donation certificates.
Comparing FBA Liquidation and Donation
| Feature | FBA Liquidation | FBA Donation |
| Enrollment Fees | None | None |
| Per-Unit Fees | Processing + 15% commission | Disposal/Donation fee (~$0.15) |
| Seller Benefit | 5–10% of average selling price | Tax certificate, brand goodwill |
| Best For | Sellers who want some cash back | Sellers who want to support charities |
Strategies To Reduce Costs
Avoid overstock issues by forecasting demand.
Avoid long-term fees by using Amazon’s self-removal settings for liquidation or donation.
Mix donation and liquidation programs: liquidate higher-value goods and donate lower-value goods.
Estimate recovered value: assess whether recovered amounts from liquidation outweigh donation value.
Check the latest fee announcements on Seller Central regularly for updates.
Seller Example: A Cost Impact Case Study
Imagine there is a seller with 1,000 units of unsold phone cases.
Liquidation option: Amazon liquidates, and the seller gets around $0.80 per unit post-fees. $800 total.
Donation option: Seller incurs a $0.15 per item fee which totals $150, but receives a plaque and gets good brand publicity.
Here, better option depends on the seller’s cashflow and brand goodwill goals.
Charges Misconceptions
Common misunderstanding revolves around lack of enrollment; there is no enrollment fee.Some sellers believe that liquidation restores half the value of the product. In fact, it is only a small fraction of that, between 5 to 10 percent.
Donations aren’t free either. There are disposal fees that must be paid.
FAQs about FBA liquidation and donation
1. Is there enrollment fees for FBA liquidation?
No, there is no enrollment fees. Only unit fees and Amazon’s cut of the sales price.
2. What percent of the value can be retrieved from liquidation?
Liquidation can usually be recovered within the range of 5 – 10% of the product’s average selling price.
3. Is there a fee for Amazon to donate?
Amazon does charge a small fee for donation, roughly 15 cents a unit.
4. Is there a way to benefit from tax by donating?
Tax benefits can be taken from donation since a donation certificate is given by Amazon through Good360 each year.
5. With the two options provided, which is more cost effective?
Liquidation may be more cost effective since it returns a percentage of the value of the products. While donation does help reduce costs, it does not bring in value.
6. Is it possible to use both options at the same time?
It is possible to use both options at the same time. You are free to donate some and liquidate others.
7. Is the option of liquidation restricted only to a portion of the world?
It is restricted to only some areas, check seller central to see the marketplace for your region.
8. What is the time frame for liquidation?
Depending on the case, it can take roughly 30 to 90 days to restore the payments.
9. Does the donation help smaller sellers?
Yes, the donation can help to spare storage and improve brand image and reputation for small sellers.
10. Where do donated products go?
Amazon partners with nonprofits, such as Good360, to distribute products to those in need.
