Amazon launches FBA Donations program for unsold stock
Amazon is launching a brand new donations program, known as Success by Amazon (FBA) Donations, for third-party sellers that retailer their stock in Amazon’s warehouses within the U.S. and UK, CNBC has discovered. Beginning on September 1, the donation program will grow to be the default possibility for all sellers once they select to get rid of their unsold or undesirable merchandise saved in Amazon warehouses throughout these two international locations. Sellers can choose out of this system, if they need.
The donations shall be distributed to a community of U.S. nonprofits via a bunch known as Good360 and UK charities corresponding to Newlife and Barnardo’s.
The brand new donations program is designed to scale back the quantity of stock that should be dumped from Amazon’s warehouses, serving to the setting and placing in any other case wasted merchandise to some use. Latest experiences discovered that Amazon routinely discards unsold stock, with one French TV documentary estimating Amazon to have destroyed over three million merchandise in France final 12 months. Provided that Amazon generates the majority of its gross sales within the U.S., the variety of destroyed stock in its U.S. warehouses is probably going a lot bigger than these present in different international locations.
“This program will scale back the variety of merchandise despatched to landfills and as an alternative assist these in want,” Amazon wrote within the e mail to sellers asserting the launch.
Sellers who spoke to CNBC mentioned the brand new program makes it cheaper to donate their undesirable stock. Amazon prices 50 cents to return unsold stock to sellers, way more than the 15 cents charged for disposal. Sellers destroy their stock for a wide range of causes, together with returns which can be not usable or for questions of safety.
In an e mail assertion to CNBC, Amazon’s spokesperson confirmed the launch of the brand new program, including it is “working laborious” to carry the variety of destroyed merchandise to zero.
“At Amazon, the overwhelming majority of returned merchandise are resold to different clients or liquidators, returned to suppliers, or donated to charitable organizations, relying on their situation,” Amazon mentioned.
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