Amazon FBA Donations Program: Everything You Need to Know
Amazon’s FBA program is one of the easiest ways Amazon sellers can fulfill orders. However, you will need to pay a small fee for every unit sold and be charged with monthly storage fees based on the daily average volume your inventory occupies. This led to millions of products getting destroyed thirty days after sellers received an email from Amazon regarding their excess inventory.
Of course, you can always have Amazon ship the product back to you, have them destroyed, or use FBA Liquidations to maximize your product’s value. But if neither option works, Amazon’s FBA donations program is another path you can take to limit your storage fees and make use of any unwanted inventory.
In this article, we’ll explain in depth what the Amazon FBA Donations program is, who benefits from them, and why sellers should opt into the program
What is the Amazon FBA Donations Program?
The Amazon FBA Donations program is an initiative that allows sellers to donate their excess or unsold inventory to Amazon’s partner charity organizations for a small fee instead of them getting destroyed.
It aims to reduce the amount of waste sent to landfills while giving a second life to unused products by donating them to local communities and those in need. Amazon’s FBA Donations is a more practical option since they will handle everything from start to finish, you avoid paying 15 cents for every donated item on the platform, and you contribute to a good cause.
Having products shipped to your warehouse or third-party logistics provider (3PL) will also take a chunk of your time and money. You will be charged fees and the only reason Amazon hasn’t relisted your item on their platform is because they’ve deemed it damaged or in unsellable condition.
The program started in 2019 after a French TV documentary discovered more than 3 million products in Amazon France were destroyed in 2018. If that’s not alarming, just know one Amazon warehouse in the UK used to destroy 130,000 items a week two years after Amazon FBA Donations started.
Now, this program provides sellers a channel to avoid paying overage fees and acquire a donation certificate. In 2022, Amazon reported more than 100 million products were donated by sellers in the Amazon FBA Donations program.
* As of June 2023, Amazon’s FBA Donations program is only available in US fulfillment centers.
How Can Sellers Donate Through the Amazon FBA Donations Program?
All Amazon sellers who use FBA in the US are enrolled in the Amazon FBA Donations program by default. If you have returned items or products you prefer to sell at a lower price, you can manually create a removal order to have the product shipped to you. That said, your other option is to have the returned or ineligible products for resale automatically donated to one of Amazon’s non profit organizations. By doing so, you’ll need to adjust your settings on the Removals page in Seller Central.
If you’re uncertain if your store has been enrolled in the program, here’s how you can check.
Login to Amazon Central. Then, select Fulfillment by Amazon from the Settings tab. In the drop-down menu, you’ll find Amazon FBA Donations and check the status of your enrollment in the program. You can opt out of the program by disabling it in your FBA Settings, although you will be charged 15 cents for every donated item.
If you want to manually donate a product, you’ll need to check the Removals page on Seller Central. From there, you can set up routine donations to ensure you won’t have to pay any overage fees.
To track the removal of your unwanted inventory, simply go to your Removal Shipment Detail report and look for items marked donation in the carrier name field. If your products no longer qualify for Amazon FBA Donations, they will be immediately recycled. Read on below to find out which items can be donated
Eligible Products That Can Be Donated Through the Amazon FBA Donations Program
The Amazon FBA Donations program covers a wide range of products that are eligible for donation. This includes new and returned products that meet the program’s donation guidelines.
If a product does not meet Amazon’s guidelines and isn’t eligible for donation, it will be disposed of in compliance with necessary regulations and safety guidelines.
Products that are not eligible for donation include
- Dangerous/hazardous goods
- Prohibited and restricted products
- Products with internal memory
- Counterfeit products
- Products with safety concerns
- Other products that may be defective/inappropriate for donation
Nonetheless, most goods (aside from those mentioned above) should be accepted and can be included in the program.
Amazon chooses the items eligible for donation from its logistics network and then identifies suitable organizations that could make the best use of specific products. Once the selection process is completed, nonprofit organizations or charities can collect the donated inventory from Amazon's facilities.
Who Benefits from Amazon FBA Donations?
Amazon is in partnership with Good360, a non-profit organization that works with over 100,000 organizations in the US to handle the distribution of donated products to reach people in need.
Among the number of suppliers who donate products, Amazon is one of the largest donors that help supply critical items to households with low-income, foster families, seniors, immigrants, and other beneficiaries.
In the US, Amazon is working with a diverse network of non-profit organizations through Good360, including CityServe, Daughters of Destiny, and Helping Hands End Hunger to name a few. While in the UK, some of the partner charities are Salvation Army, Newlife, and Barnardo’s.
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Good360 donating items from Amazon FBA Donations
How Does Someone Get Donations From Amazon?
Since Amazon partners with different non profit organizations, the easiest way to get donations from Amazon is by applying with one of their partner non profit organizations. You can choose to register your organization with Good360.
The registration is free, but you will have to be a 501(c)(3) tax-exempt recognized public charity.
Once you’re accepted, you will be required to pay an administrative fee which covers the shipping, handling, and processing of the donations.
Can I Drop off Donations to Amazon’s Fulfillment Centers?
Nope. Since all products that become eligible for Amazon donations undergo a rigorous selection process, sellers can NOT leave or drop off any item at Amazon’s fulfillment centers.
If you do want to donate an item that isn’t stored in Amazon’s fulfillment center, you can schedule a free pick up at a certain location or drop them off at UPS or the U.S. Postal Service.
Pros and Cons of Amazon’s FBA Donation Program to Sellers
Pros
- The program provides a way for sellers to reduce waste by donating excess inventory instead of having them destroyed
- Helps the less fortunate communities as the products are distributed by charitable organizations to individuals in need.
- Donating products solves the problem of excess inventory and costs the same as having your inventory removed from a Fulfillment Center.
- Promoting the reuse of items aligns with Amazon’s sustainability goals.
- Tax benefits (please refer to a tax advisor for exact benefits) .
Cons
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- Not all products are eligible for donation.
- Amazon does not provide tax advice to FBA Donation sellers.
How Else Does Amazon Give Back to the Community and Environment?
The FBA Donations program is one of Amazon's broader sustainability efforts in their commitment to the Climate Pledge program. In addition to the FBA Donations program, Amazon has implemented several other environmentally friendly initiatives and programs including:
Amazon Second Chance
Amazon encourages customers to donate and recycle their used electronic devices like old cell phones, tablets, and speakers through Amazon’s Second Chance program.
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Amazon's second chance program is another green initiative by Amazon that started last 2018.
It provides guidelines on how to trade in or recycle these products responsibly. This also encourages buyers to purchase non-new products to reduce waste and the extraction of raw materials and energy needed to make a new product.
Frustration-Free Packaging
Amazon promotes sustainable packaging by working with manufacturers to design products that can be shipped in their original packaging without the need for additional wasteful materials.
Frustration-Free Packaging reduces waste, eliminates excess packaging, and simplifies recycling for customers.
The Climate Pledge
Amazon co-founded the Climate Pledge, which is a commitment to achieving net-zero carbon emissions by 2040. The pledge encourages other businesses as well to join in reducing their environmental impact to address climate change.
Sustainable Transportation
Amazon has been working on decarbonizing its transportation network by switching to an electronic delivery fleet to reduce carbon emissions.
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One of Amazon's ways to reduce carbon emissions is by using an electric powered delivery van.
These are just a few examples of the environmental initiatives undertaken by Amazon. The company continues to explore innovative solutions and partnerships to drive sustainability and make a positive impact on the planet.
Conclusion
The Amazon FBA Donations program is an opportunity to reduce waste, save money, and manage your excess inventory. Sellers can support different charities by enabling the program and donating eligible products to the cause.
Overall, the program is another stepping stone that aligns with Amazon’s commitment to sustainability and community engagement.
Which of Amazon’s environmental-friendly programs are you most a fan of? Let us know in the comments below.
