Amazon Makes FBA Liquidations Default and Mandates Donations from Sept 2025

Effective: September 30, 2025 (U.S. & Canada)

Amazon is overhauling its inventory recovery programs. Starting September 30, FBA Liquidations becomes the default for unsold inventory in the U.S. and Canada, and FBA Donations becomes mandatory. Sellers who don’t update their settings will automatically see unsold goods liquidated or donated—reducing management burden but cutting back seller control.

What’s New / The Update

• FBA Liquidations Default: Unsold inventory will automatically be enrolled in Liquidations unless sellers opt out. Amazon decides how and where goods are liquidated.
• Mandatory Donations: Eligible items must be donated to charitable organizations; sellers can no longer opt out.
• Alternative Recovery Option: Sellers can still choose to remove inventory (ship back), but this involves added costs and logistics.

Seller Impact Analysis

• Loss of Control: Sellers cannot prevent donations and must proactively opt out of Liquidations to avoid unexpected resale in discount channels.
• Brand Sensitivity Risks: Branded products may surface in liquidation outlets outside seller oversight, raising pricing and brand perception concerns.
• Sustainability Optics: Mandatory donations align sellers with Amazon’s sustainability push, which could be positive for brand reputation.
• Cost vs. Convenience Trade-off: Amazon handles disposal quickly, cutting storage fees, but sellers lose recovery value and flexibility.

Recommended Next Steps for CedCommerce Sellers

• Review Fulfillment Settings: Update Automated fulfillable and unfulfillable settings before September 30 to avoid unwanted defaults.
• Segment by Product Value: Keep Amazon’s default for low-value or slow-moving items; opt out for higher-value inventory where resale or recovery matters.
• Plan for Brand Control: If your products are sensitive to resale channels, lean toward removal or alternative recovery.
• Factor in Costs: Weigh removal fees and logistics against potential liquidation losses to decide case by case.
• Leverage CedCommerce: Our experts can help configure your FBA settings and design a recovery strategy that balances cost, control, and sustainability.

Source: Carbon6

CedCommerce POV

Amazon’s changes simplify inventory recovery but reduce seller choice. For some, it’s a relief from overstock headaches; for others, especially brand-conscious sellers, it means sharper oversight is needed. Talk to CedCommerce today to customize your FBA recovery plan and protect both margins and brand reputation.