2026 Guide to Amazon FBA Removal & Relabeling Strategies

The Q4 holiday rush is over. The sales charts are flattening, and now comes the inevitable "January Hangover": Returns.

In the past, Amazon sellers viewed returns and unfulfillable inventory as a cost of doing business—something to be ignored until Amazon eventually disposed of it. But in 2026, ignoring your unfulfillable inventory is financial suicide.

In this guide, we break down the exact Amazon removal order costs for 2026, how unfulfillable inventory fees really work, and when FBA relabeling is more profitable than liquidation.

With Amazon introducing the Storage Utilization Surcharge (kicking in at just 22 weeks) and fundamentally changing the Automated Unfulfillable Settings, your dead stock is now actively draining your profits.

However, there is a silver lining. For the first time in years, Amazon has lowered certain removal fees, creating a strategic window for smart sellers.

Across hundreds of removal cases we handled for US sellers in Q4 2025, Zbao Logistics has acted as the "Inventory Rescue Squad." We will decode the 2026 fee changes, bust the myths about restocking restrictions, and show you how to turn "dead" inventory back into cash.

Part 1: The Cost of Doing Nothing (2026 Fee Analysis)

Amazon’s message for 2026 is clear: "Move it or Remove it." They are penalizing storage heavily while making it slightly cheaper to take your goods out.

The Good News: Fee Decreases

Effective January 15, 2026, Amazon has surprisingly reduced removal and disposal fees for lightweight items. You can verify these new rates directly on the Amazon Seller Central: Removal and Disposal Order Fees official page.

Zbao Insight: This $0.20 reduction is a strategic incentive. Amazon wants you to clear out small, low-value items (like phone accessories) to make room for faster-moving goods.

The Bad News: The "Aged Inventory" Trap

If you choose to leave your inventory in FBA, the penalties in 2026 are more aggressive than ever.

1. Aged Inventory Surcharge:

   • Previously known as Long-Term Storage Fees.

   • Trigger: Now starts at 181 Days (not 365 days).

   • Cost: $1.50/cubic foot.

   • 12+ Months Penalty: Increased to $0.30/unit (up from $0.15).

2. Storage Utilization Surcharge (The New Killer):

   • If your Storage Utilization Ratio exceeds 22 weeks (approx. 5 months of supply), you pay a surcharge.

   • Maximum Penalty: If you have >52 weeks of stock, you pay an extra $1.88/cubic foot.

   • Implication: You can no longer use Amazon FBA as a long-term warehouse.

For a deeper dive into overall cost structures, read our guide on [Amazon FBA 2026 Fee Changes Explained: The Profit Protection Guide].

Part 2: Amazon’s "Auto-Liquidation" Trap

Starting September 30, 2025 (US/Canada), Amazon changed the default behavior for unfulfillable inventory.

The "Silent" Loss

If you have not explicitly updated your Automated Unfulfillable Settings in Seller Central:

1. Default Action: Amazon will automatically Liquidate your inventory.

2. Recovery Rate: You typically recover only 5% - 10% of your sale price.

3. Mandatory Donation: Eligible items that cannot be liquidated are automatically donated. You get $0.

We strongly recommend reviewing your current configuration on the Amazon Seller Central: Automated Unfulfillable Settings help page to ensure you are not donating inventory by accident.

The Opportunity: Damaged Inventory Ownership

There is a major policy shift for 2026 called "Damaged Inventory Ownership".

• Old Rule: Amazon reimbursed you for warehouse-damaged items and took ownership of the stock.

• New Rule: Amazon marks these items as "Defective" and puts them in your unfulfillable inventory. You retain ownership.

This is where Zbao comes in. Instead of letting Amazon liquidate these "defective" (often just packaging damage) items for pennies, you can remove them to Zbao, where we fix them.

Part 3: Busting the "Restock Restriction" Myths

Many sellers are afraid to remove inventory because they fear they won't be able to send it back. Let's clarify the official 2026 rules based on our operational experience.

Myth 1: "I have to wait 90 days to restock after a removal."

Fact: This generally only applies to Free Removal Promotions.

If you pay the standard removal fee (e.g., $0.84/unit), there is NO officially published waiting period. You can theoretically send the inventory back the moment it arrives at our warehouse.

• Disclaimer: While there is no fixed block, restock eligibility is always subject to Amazon’s inventory algorithms and your current sell-through rate.

The Real Barrier: "Days of Supply"

While there is no "Removal Block," Amazon enforces an ASIN-level restock limit based on your Days of Supply.

• The Scenario: You have 2000 units in FBA (180 days of supply). You remove 1000 units.

• The Glitch: Amazon's system takes weeks to update your inventory history. Even after removal, the algorithm may still think you are "overstocked" for a short period.

• The Fix: You don't need to wait 90 days, but you do need to wait until your FBA inventory levels drop below the ~90-day supply threshold before creating a new shipping plan.

Warning: The "New FNSKU" Trick is Dead

Some gurus suggest: "Just remove the item, slap a new FNSKU on it, and send it back as a new product."

Do not do this in 2026.

1. Prep Service Changes: As of Jan 1, 2026, Amazon has discontinued FBA prep and labeling services for most seller accounts. You cannot rely on Amazon to re-label items.

2. Commingling Policy: Effective March 31, 2026, resellers must use FNSKUs. Relabeling with a manufacturer barcode to bypass limits is a violation.

3. Stranded Inventory: If you send "Widget V2" but the physical item matches "Widget V1," Amazon will mark it as Defective.

Part 4: The Zbao Solution (3PL Rescue & Relabeling)

If you have high-value items (selling price >$20) that are stuck as "Unfulfillable" or "Aged," liquidation is a waste. The Zbao Rescue Strategy restores their value.

Step 1: Create Removal Order

In Seller Central, select your unfulfillable/aged inventory.

• Destination: Input your Zbao US Warehouse address.

• Tip: Do this before the 15th of the month to avoid the next round of storage fees.

Step 2: Inspection & Grading (The "Rescue")

Once the goods arrive at our warehouse (usually 10-14 days later), our team inspects them.

• Good Units: Just damaged packaging? We replace the box.

• Bad Units: Actually broken? We dispose of them cheaply or consolidate them for spare parts.

Step 3: Relabeling

Since Amazon has restricted Prep Services, you must apply the correct FNSKU label before restocking.

• Zbao Service: We print and apply the correct FNSKU labels that match your active listing. We ensure the packaging looks brand new.

Step 4: The "Drip-Feed" Restock

Instead of sending all 1000 units back to FBA (which triggers storage surcharges), we keep them in Zbao's warehouse.

• Strategy: We send 200 units to FBA every 2 weeks.

• Benefit: This keeps your FBA Storage Utilization Ratio low (healthy IPI score) while ensuring you never run out of stock.

[Learn more about our infrastructure in 2025 Guide to Amazon Fulfillment Center Locations & Logistics]

Part 5: The Math – Is it Worth It?

Let's calculate the ROI of "Rescuing" a $50 Wireless Headphone (Standard size, 0.8 lb) versus "Auto-Liquidation."

Scenario: You have 100 units returned as "Customer Damaged" (packaging torn).

Option A: Amazon Auto-Liquidation

• Recovery Value: ~5% of retail price = $2.50.

• Net Result: You lose the product and get $2.50.

Option B: Zbao Rescue

• Removal Fee: $1.33 (2026 Rate).

• Zbao Handling & Relabeling: ~$1.50 (Estimate).

• Inbound Shipping: ~$0.50.

• Total Cost to Rescue: $3.33.

• Resale Value: You sell it again on Amazon (or TikTok Shop) for $50.00.

• Net Result: You keep the $50 sale (minus standard referral fees).

Conclusion: Spending $3.33 to save a $50 item is a 15x ROI.

Part 6: How to Execute This Strategy

1. Update Your Settings NOW

Go to Seller Central > Fulfillment by Amazon > Automated unfulfillable settings.

• Action: Select "Return" instead of "Liquidate" or "Dispose."

• Frequency: Set to "Weekly" or "Twice a Month" to prevent storage fees from accumulating.

2. Monitor Your "Days of Supply"

Check your IPI and Storage Volume Limits dashboard.

• If any ASIN > 90 days supply: Create a removal order for the excess immediately. Send it to Zbao.

• Do not wait for the 181-day surcharge to hit.

3. Plan for "January Returns"

January is the peak season for removals. Amazon's removal processing time can slow down to 30+ days.

• Action: Create your removal orders in early January. By the time the goods reach Zbao (Feb), you can prep them for the spring sales cycle.

FAQ: Removal & Restocking

Q: Can I send removed inventory to a different marketplace like TikTok Shop?

A: Absolutely. This is a smart strategy. Once the goods are at Zbao's warehouse, we can fulfill orders for TikTok Shop, Temu, or Shopify directly. This is often better than sending them back to Amazon. Read our [TikTok Shop Shipping Guide 2025: FBT vs. FBM vs. 3PL Cost Analysis].

Q: Does Amazon reimburse for items lost during the removal process?

A: Yes, but you must audit it. If Amazon confirms 100 units removed but Zbao only receives 95, you can file a claim. We provide the "Proof of Delivery" and receiving photos you need to win that claim.

Q: Is there a fee for Zbao to receive removal orders?

A: We charge a small receiving and handling fee, which is significantly lower than Amazon's storage surcharges. [Contact Us for a Quote].

Conclusion: Don't Let Amazon Trash Your Profits

In 2026, inventory management is no longer just about storage; it's about active recovery.

With the new lower removal fees ($0.84), Amazon is practically inviting you to take your inventory back. Don't let your hard-earned products disappear into the "Liquidation Black Hole."

Zbao Logistics provides the infrastructure you need to inspect, relabel, and resell.

Got excess inventory?

[Contact Us] today to set up your Removal & Relabeling plan before the January rush begins.