Efficiently Manage Amazon Returns and Maximize Inventory Space

New Amazon sellers who have just entered the cross-border e-commerce industry often feel overwhelmed after finally resolving product selection and listing challenges, only to face the next hurdle: cross-border logistics.

 

 

But don't worry! Amazon's "Official Classroom" has answers for you. In every stage of cross-border logistics, Amazon offers official logistics tools and services to help sellers successfully transport, store, and deliver products to buyers.

 

Q1: How to Handle FBA Return Orders?

 

Compared to seller-fulfilled orders (FBM), handling returns for FBA orders is simpler for sellers. You can follow these steps to find buyer-returned items and handle FBA returns based on different situations.

 

1. Where to Find Buyer-Returned Items?

• Log in to Seller Central, then click on "Inventory" → "Dashboard" → "Amazon Logistics Returns."
• In the "Manage Amazon Logistics Returns" interface, you can see return analysis and specific return orders. This interface also allows you to view return reasons and rates, such as product defects or mismatched descriptions.

 

2. General Suggestions for Handling FBA Returns

Returned items will be sent back to Amazon fulfillment centers, where Amazon will evaluate each returned product's condition:

• If the item is undamaged, Amazon will relabel it for resale.
• If the item is damaged but resellable, Amazon offers repackaging and refurbishing services or resells it through the "Amazon Logistics Grade and Resell" program.
• If the item is defective or damaged beyond resale, Amazon provides bulk liquidation, donation, or disposal services. Sellers can also choose to remove the inventory, repackage it, or return it to their home country.
• If the return is due to an FBA delivery issue, Amazon will fully refund the buyer and reimburse the shipping fee to the seller.

 

*For more details on Amazon Logistics return policies, search for "Amazon Logistics Buyer Return Policy" on the official site.

 

3. Grade and Resell: Revitalize Your Inventory

If a product is deemed unsellable, Amazon offers a "Grade and Resell" program. This program, available only to invited users, allows sellers to relist unsellable inventory as second-hand items without incurring return or removal fees.

 

 

Q2: What to Do If You Can't Ship Due to Inventory Capacity Limits?

 

NOTE: According to Amazon's new inventory capacity policy, if your inventory exceeds the storage capacity limit, you will not be able to create new shipments.

To prevent your storage usage from exceeding capacity limits, Amazon provides the following three solutions:

 

Solution 1: Increase Storage Capacity

 

1. Use the Storage Capacity Manager to Apply for More Space

• If sellers need more storage space for incoming goods, they can apply for additional storage to ensure strong sales performance during peak seasons.

 

2. How to Apply for More FBA Storage Capacity?

 

• Application Path: Seller Central → Dashboard → Capacity Monitor → Storage Capacity Manager

Operation Instructions：

 

 

Solution 2: Reduce Excess Inventory

 

1. Use the Four-Step Method to Clear Excess Inventory and free up more space.

Excess inventory can be:

• Aged Inventory: With high additional fees compared to monthly storage fees, especially for items held over 365 days.
• Items with Higher Holding Costs: Amazon suggests actively clearing such inventory to manage storage capacity and save on storage costs.

In the "Amazon Logistics Inventory" tool, sort by "Estimated Excess Inventory" to identify your excess stock. The tool will provide recommendations for each ASIN, which you can evaluate based on your product market and business situation.

 

2. How to Clear Excess Inventory?

Based on recovery value and speed, try the following four steps:

• Expand to More Sites: Sell at the original price on additional sites.
• Promote Sales: Discount and clear stock to solve inventory backlog.
• Prepare Storage: Settle pending inventory.
• Clear Excess: Remove inventory and recover remaining value.

 

3. View Your Excess Inventory Status

Use the inventory management self-check toolkit to quickly identify and resolve your excess inventory issues.

 

Solution 3: Improve Efficiency

 

Use Amazon Warehouse and Distribution Network (AWD) to store your extra inventory and automate replenishment to Amazon fulfillment centers.

AWD helps you solve storage and distribution challenges after goods arrive, offering greater flexibility and more cost-effective bulk storage.

 

1. Advantages of AWD and How to Operate Shipping/Replenishment

Advantage 1: Lower Supply Chain Costs

AWD's average storage fees are lower than FBA's, with no peak season surcharges. Costs include only storage, handling, and shipping fees, with no inbound configuration service fees.

 

Advantage 2: Simplified Inventory Management

AWD effectively helps you avoid stockouts and capacity limits. By choosing automatic replenishment, AWD adjusts replenishment based on real-time capacity, eliminating issues caused by capacity limits.

Additionally, once goods enter AWD, they can be searched and purchased before reaching FBA, ensuring maximum sales potential.

 

2. Shipping and Replenishment Operations

Path: Seller Central → Inventory → Storage and Distribution → Enter AWD project page, click "Join" in the upper right corner, and manage AWD shipping and replenishment from this page.

 

Sellers can also click [AWD Interface] to access it directly.