FBA Liquidation
Also known as: Amazon Liquidation, Grade and Resell
FBA Liquidation is an Amazon program that sells off your excess or aged FBA inventory in bulk through wholesale liquidators, returning you a percentage of value instead of a disposal write-off.
Amazon's FBA Liquidations program routes excess, returned, or aged inventory to bulk liquidation partners who resell it through secondary channels. Instead of paying to dispose of or ship back stock that is bleeding the aged-inventory surcharge, you recover a fraction of its value — typically a small percentage of the average selling price, net of a liquidation fee.
Liquidation is one of three exit paths for stale FBA stock: a removal order (units shipped back to you), a disposal order (units destroyed), or liquidation (Amazon sells them in bulk). Liquidation usually nets more than disposal and avoids return-shipping logistics, but the recovery rate is low, so it is a loss-minimization tool, not a profit center.
The right move depends on the math: if the unit still has retail demand, lowering price or running ads beats liquidating; if it is dead stock racking up storage and surcharge fees, liquidation often beats disposal. Inventory tools surface which aging SKUs are candidates.
A seller has 400 aged units of a discontinued product accruing the aged-inventory surcharge. They enroll them in FBA Liquidations and recover roughly 5–10% of average selling price — more than a $0 disposal — while clearing the storage liability.