This article applies to selling in: Australia

Inventory Disposition

Products are considered unfulfillable when they are damaged, defective, or otherwise unfit for sale or shipment. If damage occurs while products are under our control (damaged by an Amazon partnered carrier, in the fulfilment centre, or during delivery to a customer), we take responsibility and will reimburse you for the unit according to the FBA Lost and Damaged Inventory Reimbursement Policy. If the damage occurs while the unit is not under our control, or if this is defective, you can create a removal order for that unit to be returned to you or disposed of at the fulfilment centre.

Condition Codes

Disposition Description Your action
Sellable Unit returned to your inventory and available for purchase None
Warehouse Damaged Amazon takes responsibility for the damage. Ownership of the unit is transferred to Amazon. Amazon compensates you based on the FBA Lost and Damaged Inventory Reimbursement Policy.

None

We automatically remove the damaged unit and compensate you for it, which should be completed within 10 days from the damage date. You will not be able to remove this inventory.

Carrier Damaged Amazon determines that the carrier has damaged the unit and takes responsibility for the damage. Ownership of the unit is transferred to Amazon. Amazon compensates you based on the FBA Lost and Damaged Inventory Reimbursement Policy.

None

Customer Damaged Amazon determines that the unit has been damaged by the buyer upon return to the fulfilment centre. The unit is set aside as unsellable. You can request to have the unit returned to you.
Defective Amazon determines that the unit is defective, and the unit is set aside as unsellable. You can request to have the unit returned to you.
Distributor Damaged Amazon determines that the unit was received from the seller (the distributor in this case) in damaged condition. The unit is set aside as unsellable. You can request to have the unit returned to you.

Below is a list of product dispositions that will make a unit unfulfillable along with a description for each. You can find which disposition applies to your unfulfillable units by going to the Inventory Adjustments report.

Product Disposition Online Report Downloadable report
Inventory subtracted from your fulfillable inventory when it is defective (not visibly damaged but doesn't work as intended) and potentially part of a recall. Damaged as result of item defect K
Inventory subtracted from your fulfillable inventory when it was damaged by a customer. Damaged – customer return H
Inventory subtracted from your fulfillable inventory when it was damaged by the seller. Damaged by merchant U
Inventory subtracted from your fulfillable inventory when it was damaged in the fulfillment center.

Damaged at Amazon fulfillment center

Damaged at Amazon fulfillment center/Warehouse Damaged

E
Inventory subtracted from your fulfillable inventory when it was damaged by the carrier either in transit to the customer or to the fulfillment center. Damaged by inbound carrier 6
Inventory subtracted from your fulfillable inventory when it was damaged, but the source of the damage is not one of the sources identified above. Damaged - miscellaneous Q
Inventory subtracted from your unfulfillable inventory when Amazon takes responsibility for the damage and issues a reimbursement for the damaged units. Amazon owns the damaged inventory at this point. Transfer to another owner O
Indicates that an unsellable unit has been added to the quantity of unfulfillable inventory. This is a positive value that corresponds with a negative value indicated by a K, H, U, E, 6, or Q reason code. Unsellable inventory P

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