FBA Liquidations: Part 3 Understanding the Process, Payments, and Things to Consider
Hi Sellers,
Welcome to part 3 on FBA Liquidations!
Let's delve deeper into what you can expect after submitting a liquidation order:
- Processing Time: Typically, it takes about 30 days for inventory to ship to liquidators. During this time, your inventory will show as "In Process Qty" on the Removal Order Detail report, and the order status will be "Pending".
- Shipping to Liquidators: By day 30 (or sometimes earlier), your inventory ships to one or more liquidators. At this point, it's marked as "Completed Qty" in the Removal Order Detail report, and the order status changes to "Completed".
- Payment Timeline: Expect to see your net recovery value on your Payments page about 60 days after order submission. This means the entire process, from submission to payment, can take up to 90 days.
- Payment Tracking: In Seller Central, go to the Payments section and filter the Transaction Type to "Liquidations" to view all associated revenue and fees. You may see three types of transactions:
- Liquidations: Standard liquidation orders
- Liquidations Adjustment: Reversals in case of damaged or unsuitable inventory
- Other: Potential reimbursements equivalent to the net recovery value
- Multiple Payments: If your inventory was shipped to more than one liquidator, you might see multiple shipment order IDs and corresponding payments.
Cancellations: Amazon may cancel a liquidation order if the inventory isn't available for removal (e.g., if it's part of a pending customer order). In this case, the items will display as "Canceled" in the Removal Order Detail report.
- Tax Considerations: Amazon's Tax calculation services can help you calculate tax on liquidation orders. The tax will be reported based on the shipment date, but won't appear in your report until the liquidator has paid Amazon.
- Product Tax Codes: For active listings, your item-level Product Tax Code (PTC) will be used. For inactive listings, the default PTC in your Tax Settings will be used.
Remember, once you submit a liquidation order, it can't be canceled, so double-check your selections before confirming!
- Ensure your listings are active if you want to use your specific PTCs for tax calculations.
- Be aware that some product categories (like face masks or jewelry) may be ineligible for liquidation.
- Keep in mind that dangerous goods, recalled inventory, and certain unfulfillable inventory (e.g., expired or defective items) are not eligible for liquidation.
Dominic
FBA Liquidations: Part 3 Understanding the Process, Payments, and Things to Consider
Hi Sellers,
Welcome to part 3 on FBA Liquidations!
Let's delve deeper into what you can expect after submitting a liquidation order:
- Processing Time: Typically, it takes about 30 days for inventory to ship to liquidators. During this time, your inventory will show as "In Process Qty" on the Removal Order Detail report, and the order status will be "Pending".
- Shipping to Liquidators: By day 30 (or sometimes earlier), your inventory ships to one or more liquidators. At this point, it's marked as "Completed Qty" in the Removal Order Detail report, and the order status changes to "Completed".
- Payment Timeline: Expect to see your net recovery value on your Payments page about 60 days after order submission. This means the entire process, from submission to payment, can take up to 90 days.
- Payment Tracking: In Seller Central, go to the Payments section and filter the Transaction Type to "Liquidations" to view all associated revenue and fees. You may see three types of transactions:
- Liquidations: Standard liquidation orders
- Liquidations Adjustment: Reversals in case of damaged or unsuitable inventory
- Other: Potential reimbursements equivalent to the net recovery value
- Multiple Payments: If your inventory was shipped to more than one liquidator, you might see multiple shipment order IDs and corresponding payments.
Cancellations: Amazon may cancel a liquidation order if the inventory isn't available for removal (e.g., if it's part of a pending customer order). In this case, the items will display as "Canceled" in the Removal Order Detail report.
- Tax Considerations: Amazon's Tax calculation services can help you calculate tax on liquidation orders. The tax will be reported based on the shipment date, but won't appear in your report until the liquidator has paid Amazon.
- Product Tax Codes: For active listings, your item-level Product Tax Code (PTC) will be used. For inactive listings, the default PTC in your Tax Settings will be used.
Remember, once you submit a liquidation order, it can't be canceled, so double-check your selections before confirming!
- Ensure your listings are active if you want to use your specific PTCs for tax calculations.
- Be aware that some product categories (like face masks or jewelry) may be ineligible for liquidation.
- Keep in mind that dangerous goods, recalled inventory, and certain unfulfillable inventory (e.g., expired or defective items) are not eligible for liquidation.
Dominic