Amazon has released two significant updates to Fulfillment by Amazon (FBA) settings that will come into effect on September 30, 2025. Both developments have a direct effect on how unsold, returned, and unsellable inventory is processed within Amazon’s warehouses. Although presented as part of Amazon’s sustainability initiatives, they also influence sellers’ inventory management approaches significantly.
In this article, I’ll walk through the details of the new rules, explain their potential impact, and share practical advice for sellers who want to stay ahead of the curve
FBA Liquidations Becomes the Default Option
Thus far, sellers could determine what would become of their leftover inventories—whether to return it, dump it, give it away, or sell it. Liquidation will now be the default option for any inventory for which removal preferences have not been established automatically.
What does this look like in reality? If you don’t act, Amazon will automatically place your unsold inventory into liquidation. Sellers can still opt-out or modify settings at any time, but this default switch puts the onus on sellers to track and control inventory actively.
On the other hand, liquidation enables you to recoup at least a portion of your investment rather than forfeiting 100% of the disposal cost. Liquidation does, though, question whether liquidation fits every brand’s price and position plan. To some vendors, liquidated merchandise being distributed at bargain prices can erode brand worth.
FBA Donations Become Mandatory
The second adjustment is more significant: FBA Donations will become required. Sellers who had opted out will be enrolled by Amazon automatically.
Through FBA Donations, unsold or returned items are donated to charities and nonprofits. Instead of being sent to two landfills, the products can be recycled or reused and help needy communities.
This shift solidly aligns with Amazon’s sustainability narrative and rising customer expectations for responsible environmental stewardship.Sellers will have less control over unsold inventory but also a chance to be part of Amazon’s corporate social responsibility initiatives.
Donations can also build reputations for brands. Consumers more and more desire to purchase from sustainable businesses, and having the ability to see that a company’s products are being recycled rather than wasted may be able to increase trust and loyalty.
The Good News: No Fee Changes
Amid these updates, there’s at least one relief for sellers: Amazon has confirmed there will be no changes to removal or processing fees. That means while your removal options may shift, your cost structure remains unaffected—for now.
What Sellers Should Do Before September 30
With the deadline approaching, here’s how sellers should prepare:
Review Your Removal Settings: Don’t wait for Amazon to automatically enroll you. Take control by checking whether liquidation and donation align with your brand and financial goals.
Revisit Inventory Strategy: If liquidation could hurt your brand positioning, consider adjusting pricing, promotions, or forecasting to reduce excess and returned stock.
Monitor Returns Trends: Returns can now end up in the donation pipeline. Examining why customers return your items can cut losses and preserve profitability.
Speak to Your Staff: If you have a VA, agency, or supply chain manager, ensure that they know about these adjustments so nothing is left behind.
Final Thoughts
The single most significant thing is to act ahead of time. Review your FBA settings today, rethink your inventory approach, and ask yourself how liquidation and donations fit into your business model. Those who pivot sooner rather than later will not only avoid surprises come September 30 but also set themselves up for greater, more resilient growth on Amazon.
