Amazon Now Disposes of Unfulfillable FBA Stock After 23 Days

In brief: Amazon unfulfillable inventory now gets 23 days: stock Amazon can't sell — damaged, returned in poor condition or otherwise unusable — has to leave its warehouses. From 16 September 2024, if your UK or EU account doesn't have automatic handling of unfulfillable stock switched on, Amazon disposes of or donates that stock 23 days after telling you (previously 30). Once the disposal order is created, it can't be cancelled.

Your options on unfulfillable inventory before 23 days

Option	What happens	Money effect
Do nothing	Amazon disposes of or donates the stock	Disposal fees; stock value lost
Manual removal order	Stock sent back to you or a forwarder	Removal fees; you may resell or refurbish
Automated settings: liquidate	Amazon sells it through liquidation	Some value recovered, less fees
Automated settings: return	Stock sent to your return address or freight forwarder automatically	Removal fees; you keep control

What it means for your bookkeeping

• Write off disposed stock. When Amazon disposes of or donates inventory, it leaves your stock. Remove its cost from your stock records and record the loss, so your stock value isn't overstated.
• Removal and disposal fees are costs. They appear as fees in your settlements; for UK sellers they carry 20% UK VAT. Since May 2026 they're charged per unit as items are processed — see per-unit removal and disposal fees.
• Liquidation proceeds are income, net of fees. If stock is liquidated, record the proceeds and the liquidation fees separately so you can see what was really recovered.
• Check whether a reimbursement is due. If stock became unfulfillable because Amazon damaged it, it may qualify for reimbursement — see Amazon's reimbursement rules.
• Set your automated preference. A standing liquidate-or-return setting avoids losing stock to the 23-day deadline.

How TrueBooks helps

TrueBooks posts removal, disposal and liquidation lines — and any reimbursements — from each settlement to their own accounts in Xero, so the cost of unsellable stock is visible. See the Amazon Xero integration.