An Introduction to Stranded and Unfulfillable Inventory
Stranded and unfulfillable inventory are two challenges every Amazon seller needs to understand. Stranded inventory refers to units in an Amazon warehouse that are essentially stuck in limbo—they don’t have an active offer and, therefore, can’t be sold. Unfulfillable inventory, on the other hand, includes products that can no longer be sold to customers. This typically happens when items are returned in unsellable condition or become damaged, either during transit or due to improper packaging. Whether your inventory is stranded or unfulfillable, both represent lost sales opportunities, making it crucial to address these issues promptly.
Why Inventory Gets Stranded and How to Fix It
Stranded inventory can occur for a variety of reasons, each requiring specific actions to resolve. Here’s a breakdown of the common causes and how you can address them:
Intellectual Property (IP) Claims
If you receive an IP claim on a product you are selling, the inventory for that product will become stranded. Unfortunately, in most cases, the only solution is to create a removal order and have the products returned to you. IP claims can be extremely difficult to challenge, and in almost all cases, you’ll end up on the losing side.
To minimise the risk of IP claims, it’s important to analyse the products you purchase carefully. Don’t be disheartened if you encounter one; remember, there’s always a first claim for some brands.
I’ve personally experienced a situation where a brand, with listings as old as three years and no prior claims, suddenly decided to enforce their IP rights across all their products. Unfortunately, these situations can happen, so it’s crucial to stay vigilant and prepared.
Pricing Errors
Setting the price of an item too high or too low can also result in stranded inventory, as it may violate Amazon’s Marketplace Fair Pricing Policy. When this occurs, the affected listing will appear under ‘Other Policy Violations’ in your Account Health page on Seller Central, marked with a red triangle. To resolve the issue, you’ll need to adjust the price to fall within Amazon’s guidelines. Acting quickly is key to getting the listing active again.
This issue frequently arises when using repricing tools, particularly if they are configured to increase the price when you’re the only FBA seller on a listing. While repricers can be incredibly helpful, it’s important to monitor their settings and behaviour to ensure they don’t inadvertently trigger pricing errors.
Shipment Errors
Shipment errors are a frequent cause of stranded inventory and can occur for various reasons. Common mistakes include sending the wrong items in a shipment, sending an incorrect quantity, or mixing up labels on your boxes. When these errors happen, the affected units become stranded upon arrival at Amazon’s fulfilment centre.
To resolve this issue, head to the Fix Stranded Inventory section in Seller Central. If the units were sent to the correct fulfilment centre but in the wrong box, the problem is usually straightforward to fix. However, be aware that such errors can increase your shipment error percentage, which may impact your seller performance metrics. Double-checking your shipments before sending them can significantly reduce these errors.
If the units were sent to the wrong fulfilment centre, you may need to create a removal order and re-ship them correctly. For instance, if a Dangerous Goods product accidentally gets included in a regular product shipment, it would require a removal order and proper re-shipment. These mistakes can be frustrating but are manageable with careful handling and attention to detail.
Hidden Listings Due to Compliance
Listings can become hidden when compliance documents are required. While the listing is inactive, any associated inventory becomes stranded. If this happens to you, it’s worth waiting a couple of days to see if the issue is resolved by another seller, the listing creator, or the brand. If the problem isn’t resolved within a reasonable timeframe, you will need to create a removal order to retrieve your units.
Deleted Products & Customer Returns
Deleting a SKU from your inventory can cause returned units to become stranded. To avoid this issue, it’s best not to delete SKUs until at least a month has passed since the last sale of the product. During the holiday season, remember that Amazon’s extended return window runs from mid-November to the end of January. If a SKU is deleted and a returned unit becomes stranded, you can fix the issue by creating a new listing for the product. From there, resolve the problem by navigating to the stranded inventory section in Seller Central.
Similarly, when a customer returns a product while the listing is hidden, the returned unit becomes stranded. In such cases, it is often best to wait a few days to see if the listing issue is resolved by another party. If it isn’t, you will need to create a removal order to handle the returned unit. These situations are frustrating but manageable with patience and proactive inventory management.
Why Inventory Becomes Unfulfillable and How to Deal with It
Inventory can become unfulfillable due to various reasons, each needing specific steps to address. Here’s a summary of the most common causes and how to manage them effectively:
Defective
An item can be flagged as “defective” when a customer returns it to Amazon due to a fault, such as a failure to work as intended, even if there are no visible signs of damage. Defects typically fall into one of three categories:
Design Defects
These occur when the product’s design is inherently flawed. Examples include:
- A children’s toy with choking hazards.
- A squeeze bottle for a moisturiser that doesn’t dispense the product properly.
- A bench or table that collapses due to poor construction.
Manufacturing Defects
Unlike design defects, manufacturing defects arise during production and only affect certain batches or units. Examples include:
- Misaligned or poorly attached parts, such as the doors of a toy car falling off.
- Weak seals on bottles or containers, such as a shampoo bottle with a cap that leaks during transit.
- Faulty stitching on fabric items, such as a backpack with seams that come apart after minimal use, causing the straps to detach.
Unfortunately, Amazon does not accept responsibility or provide reimbursement for returned products that are clearly damaged by customers, defective, subject to product recall, or in violation of its policies.
As an alternative, you can request to have the faulty unit returned to you. In some cases, the item may genuinely be defective, but in others, buyers might claim a manufacturing defect to benefit from free return shipping when they simply didn’t like the product or changed their mind. The only way to confirm the issue is to have the unit returned so you can inspect it yourself.
If the product is not defective, I recommend listing it on other platforms like eBay. This approach has personally been the most effective way for me to either cut my losses or recoup some of my investment. Sending the item back to Amazon is generally not advisable in such cases, as you’ve already incurred costs for shipping it to Amazon initially and having it sent back to you. Selling on alternative marketplaces allows you to recover as much value as possible without incurring additional fees.
Customer Damaged
As briefly mentioned, customer damage refers to when a buyer returns an item that has either been opened or damaged, making it unsuitable to be sold as new on Amazon.
Again, Amazon does not take responsibility for or reimburse items damaged by customers. If you’re noticing frequent returns for a particular product, it’s worth investigating the cause. This could help you identify patterns, address potential issues, or even decide to avoid stocking that product in the future. Taking proactive steps is crucial to ensure you remain profitable.
For customer-damaged items, I recommend creating a removal order to have the products returned to you. Once you receive them, inspect the items to determine their condition. In many cases, you can sell these products on platforms like eBay to recoup some of your investment. This is often the best way to minimise losses while making the most of the returned stock.
Warehouse Damaged
As you might expect, Amazon workers handle thousands, if not millions, of products every day. With such a high volume, it’s inevitable that some products will get damaged or even lost while in fulfilment centres.
“Warehouse Damaged” refers to items that have been damaged within Amazon’s fulfilment centres, typically due to mishandling by staff.
In most cases, inventory damaged in warehouses is reimbursed automatically. However, there are times when you may need to file a claim. To do this, contact Seller Support and provide details of the damaged item.
Carrier / Courier Damaged
“Carrier/Courier Damaged” refers to inventory that gets damaged by a carrier or courier during one of the following stages: transfer to a fulfilment centre, transit to the buyer, or transit back to a fulfilment centre following a return request.
The carrier or courier is responsible for mishandling your inventory during shipping, and Amazon will reimburse you under their Inventory Reimbursement Policy. If you have not received reimbursement yet, you can manually file a claim.
Distributor Damaged
This classification applies when a product arrives at Amazon in a damaged condition that makes it unfit for sale. The damage is usually caused by the merchant or distributor, often due to improper packaging, handling, or storage during transportation.
Because the damage wasn’t caused by Amazon, they won’t accept responsibility or provide automatic reimbursement as they do for warehouse or carrier-related damages. Instead, the item is marked as unfulfillable and set aside for removal or disposal.
If you used UPS, Amazon’s partnered carrier in the United Kingdom, you can apply for reimbursement.
If you didn’t use Amazon’s Partner Carrier (UPS), you’ll need to seek reimbursement directly from your chosen carrier or your insurance provider, if applicable. You can also request Amazon to return the damaged unit to you for inspection. This allows you to assess whether the product is still in a condition where it can be resold.
Expired
Products that are within 50 days of their expiration date upon arrival at an FBA fulfilment centre will be marked as unfulfillable and cannot be returned to you. Expiration-dated items typically include groceries, topical products, consumables, and supplements.
According to Amazon’s expired product guidelines, at the time of check-in at the Amazon fulfilment centre, all products must have a remaining shelf life that allows enough time for the product to be consumed in full, plus an additional 90 days. For example, a bottle of supplements with 240 daily servings must have a remaining shelf life of 240 days, plus an additional 90 days, totalling 330 days.
If units approach their expiration date and no longer have sufficient time to be fully consumed, they may be flagged as unfulfillable.
Managing Stranded & Unfulfillable Inventory
To manage your stranded and unfulfillable inventory, navigate to their dedicated sections
You’ll be able to find them in the Inventory section of the FBA Dashboard. In this section you can create removal orders for your stranded and/or unfulfillable inventory.
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