Since the outbreak of COVID-19, the Amazon platform has flooded in many new third-party sellers, and also generated many operational problems.
For new Amazon sellers, the problem of unsalable inventory may occur during operation.
What is non saleable inventory?
As the name implies, if the seller's store has unsalable inventory in the background, it means that some inventory in Amazon warehouse is damaged or nonconforming, and sales cannot be conducted.
According to the relevant policies of Amazon, if the seller's goods are defective, damaged, or unsuitable for sales and logistics distribution, they will be classified as non saleable products by the platform.
For Amazon sellers, once there is unsalable inventory, they should immediately contact Amazon warehouse staff to ask what problems the product has and what remedies are available.
At the same time, Amazon warehouse staff will immediately investigate the inventory and give feedback.
It should be emphasized that sometimes Amazon will also reject the seller's inventory survey request, and the seller can apply to move the product to the overseas warehouse for inspection.
In addition, the non saleable inventory may be caused by the non compliant operation of Amazon warehouse staff.
For example, in the process of inspection or handling of the seller's goods, Amazon personnel make mistakes that cause damage to the product, which is generally borne by Amazon.
How does Amazon compensate the seller?
First, refer to the previous sales records of the seller's products.
Second, refer to the FBA sales price of competitors or the same type of products in Amazon.
Third, the past sales records of specific ASIN.
In addition, if there is not enough information to determine Amazon's compensation amount, the platform will use the sales price of similar products as the seller's inventory compensation amount.
It is worth mentioning that the compensation amount of Amazon will not exceed 5000 dollars in the compensation for the unsaleable inventory. They also suggested that the seller should consider third-party insurance for products with a price of 5000 dollars or more.
In general, both the seller and the platform do not want to see the non saleable inventory. However, once the seller finds that such a phenomenon exists, it should find out the reasons to prevent its compliance interests from being infringed.