Did you donate products through the FBA Donations program in 2022? If so, you now have access to a donation certificate which reports the inventory you donated in the previous year. For information about the specific tax benefits to which you may be entitled, please consult your tax advisor.
The Fulfillment by Amazon (FBA) Donations program helps sellers donate unwanted product, including returns and eligible overstock FBA inventory. In 2022, sellers donated nearly 100 million products through the FBA Donations program. Now, sellers using the program have access to a donation certificate in Seller Central (login required).
Your donation certificate will be generated on a yearly basis and can be found on the Donations page in Seller Central. The donation certificate contains the quantity and description of your inventory that was donated through the program in the previous year.
What is the FBA Donations program?
The FBA Donations program helps you donate eligible products to Amazon’s charity partners. The program is part of ReCommerce by Amazon, whose mission is to provide sellers with a range of value recovery channels to save cost and effort in managing overstock and return products.
When you have products in FBA that need to be returned to you, or sold at a lower price through refurbishment, grade and resell, or liquidation, you can create a removal order to have the products handled however you see fit. However, you also have the opportunity to donate your products to charity.
By default, all U.S. sellers who use FBA are enrolled in the FBA Donations program. To get the most benefit out of the FBA Donations program, you have to manually elect to donate additional product that may otherwise sit in fulfillment and accrue fees.
On the Removals page in Seller Central, you can set up a standard cadence for donating your products, such as twice a month. The language used in Seller Central for donating your products currently says “Dispose” or “Donate/Recycle” to refer to donations, depending on the page. If you’ve chosen to liquidate or return products to yourself in the past, you may want to reconsider the benefits of donating for your business.
Since sellers who use FBA are automatically opted into the program, any product that is returned and is ineligible for resale may automatically be donated. Additionally, any product that is ineligible for donation will be recycled.
Don’t know if you donated? Change or check your enrollment status by going to the Fulfillment by Amazon settings page in Seller Central, and scroll down to FBA Donations program.
Additionally, this program is referred to on the donations page as either “Donate/Recycle” or “Dispose.” If you thought you disposed of unwanted product in 2022, you may have actually donated.
Where do donations go?
We launched the FBA Donations program in 2019, in partnership with the non-profit Good360 to give products a second life by providing goods to local communities in need.
The FBA Donations program helps keep product from being thrown away when it could be reused, giving products a second life. Amazon partnered with Good360 to ensure that products donated by sellers get to those who are in need, and benefit nonprofits around the world.
One of these nonprofits is Daughters of Destiny, located in Chicago, Illinois. Daughters of Destiny provides women with counseling, childcare, giveaway events, and more. After a fire displaced more than 150 households in 2022, Daughters of Destiny partnered with Good360 to provide families with basic household necessities that had been donated through FBA Donations, such as new linens, silverware, small appliances, and clothing.
“The families were extremely grateful to receive brand-new goods that they desperately needed, especially during such a challenging time,” said Dr. Bridget Outlaw, founder of Daughters of Destiny. “I look forward to continuing this partnership with Good360 and the Amazon FBA Donations program to better serve the people of Chicago.”
You can partner with Amazon and Good360 to make a difference with your products that are ineligible for resale, or aren’t selling through. Set up recurring donations today, and login to Seller Central to download your 2022 donation certificate.
For information about the specific tax benefits to which you may be entitled, please consult your tax adviser. Learn more about the FBA Donations program.