What is Unsuitable Inventory on Amazon?

Recently, Amazon has been sending e-mail notifications to their third party sellers announcing the introduction of a new policy regarding Unsuitable Inventory.

Amazon stated that any FBA inventory for which an affected merchant suspected by the company to be selling counterfeit or otherwise illegal goods fails to provide invoices will be destroyed at his own expense.

Here is a screenshot containing example of such a notification:

Here is a copy of the full wording:

Upcoming changes to program policies

Hello,

Effective September 2, 2022, we are introducing the Unsuitable inventory investigations program policy on Amazon.se and Amazon.pl.

As per this new policy, we will request additional information from sellers if we suspect they have engaged in the sale of counterfeit or illegal goods at Amazon. If the seller does not provide the requested information or the inventory constitutes unsuitable units, Amazon may dispose of it.

We encourage you to review the details available on the Changes to program policies page: https://sellercentral-europe.amazon.com/help/hub/reference/GQHQGBTD7XB7EECN.  

Your continued use of selling services after the respective date of effectiveness constitutes your acceptance of the changes.

The Amazon Services Europe team

However, you should know that Amazon’s newly introduced policy is wholly unenforceable and non-compliant with EU and UK laws.

Amazon cannot destroy your property under a “guilty until proven innocent” excuse. Unless they can prove in front of a court, that your goods constituted counterfeits or infringement of intellectual property, you should be able to recover any compensation for destroyed inventory under such policy.

Nevertheless, unless you are prepared to take a legal action, you should be alert that Amazon will be destroying FBA inventory, for which you are unable to provide invoices or documentation meeting their requirements.

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