October 16, 2019 Finance and Tech Publication

Amazon launches program to donate unsold products, after reports millions being destroyed

Inventory at a warehouse

Getty Images

Amazon wants its third-party sellers to make better use of their unsold or unwanted products that often get dumped — by giving them away to charity.

Amazon is launching a new donations program, called Fulfillment by Amazon (FBA) Donations, for third-party sellers that store their inventory in Amazon’s warehouses in the U.S. and UK, CNBC has learned. Starting on September 1, the donation program will become the default option for all sellers when they choose to dispose of their unsold or unwanted products stored in Amazon warehouses across those two countries. Sellers can opt out of the program, if they want.

The donations will be distributed to a network of U.S. nonprofits through a group called Good360 and UK charities such as Newlife and Barnardo’s. 

The new donations program is designed to reduce the amount of inventory that must be dumped from Amazon’s warehouses, helping the environment and putting otherwise wasted products to some use. Recent reports found that Amazon routinely discards unsold inventory, with one French TV documentary estimating Amazon to have destroyed over 3 million products in France last year. Given that Amazon generates the bulk of its sales in the U.S., the number of destroyed inventory in its U.S. warehouses is likely much larger than those found in other countries.

“This program will reduce the number of products sent to landfills and instead help those in need,” Amazon wrote in the email to sellers announcing the launch.

Sellers who spoke to CNBC said the new program makes it cheaper to donate their unwanted inventory. Amazon charges 50 cents to return unsold inventory to sellers, much more than the 15 cents charged for disposal. Sellers destroy their inventory for a variety of reasons, including returns that are no longer usable or for safety issues.

In an email statement to CNBC, Amazon’s spokesperson confirmed the launch of the new program, adding it’s “working hard” to bring the number of destroyed products to zero.

“At Amazon, the vast majority of returned products are resold to other customers or liquidators, returned to suppliers, or donated to charitable organizations, depending on their condition,” Amazon said. 

WATCH: How Amazon one-day shipping works

in News
Related Posts

Germany set to allow Huawei into 5G networks, defying pressure from the US

October 16, 2019

October 16, 2019

The Huawei logo in front of the company’s German headquarters in Duesseldorf, Germany Wolfgang Rattay | Reuters Germany will not...

EU tells Broadcom to stop certain business deals in unprecedented move

October 16, 2019

October 16, 2019

Broadcom Corp. signage is displayed outside of the company’s headquarters in Irvine, California. Patrick Fallon | Bloomberg | Getty Images...

EU tells Broadcom to stop certain business deals in unusual move

October 16, 2019

October 16, 2019

Broadcom Corp. signage is displayed outside of the company’s headquarters in Irvine, California. Patrick Fallon | Bloomberg | Getty Images...

Google Pixel 4 could take advantage of Huawei’s troubles — but it won’t be easy

October 16, 2019

October 16, 2019

Pixel 4 smartphones are displayed during the Made by Google event in New York, U.S., on Tuesday, Oct. 15, 2019....

Alibaba Group thwarts 300 million hack attempts per day, founder Jack Ma says

October 16, 2019

October 16, 2019

Alibaba’s company logo at its office in Hong Kong on February 22, 2012. Aaron Tam/Stringer | Getty Images Chinese technology...

SoftBank is in talks with JP Morgan on WeWork bailout as cash expected to dry up by mid-November

October 16, 2019

October 16, 2019

SoftBank Group founder, chairman and CEO Masayoshi Son announces his group’s earnings results on May 9, 2019, in Tokyo. Alessandro...

Facebook employee says he was fired for speaking out about his colleague’s suicide

October 15, 2019

October 15, 2019

Yi Yin joined Facebook’s core growth team in July and he was fired after he participated in a protest demanding...

Twitter explains when it will remove abusive tweets by world leaders

October 15, 2019

October 15, 2019

Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi,...

Here’s a first look at Google’s new phone, which you can control by waving your hand over the screen

October 15, 2019

October 15, 2019

Google announced a bunch of new gadgets at a press event in New York City on Tuesday, including the Pixel...

Here’s a first look at Google’s Pixel 4, which you can control by waving your hand over the screen

October 15, 2019

October 15, 2019

Google announced a bunch of new gadgets at a press event in New York City on Tuesday, including the Pixel...

Google’s aggressive ‘ambient computing’ strategy means it wants to be everywhere

October 15, 2019

October 15, 2019

“Ambient computing” is the latest buzzword Google executives touted at its annual hardware event Tuesday. Google’s hardware strategy has been...

Warren pledges to turn down money from Big Tech and top Wall Street executives

October 15, 2019

October 15, 2019

Presidential candidate and U.S. Senator Elizabeth Warren (D-MA) speaks at a campaign rally at Keene State College in Keene, New...

JP Morgan and big bank earnings: Here’s what Wells Fargo’s former CEO and other experts are saying

October 15, 2019

October 15, 2019

Call it a financial frenzy. Big banks J.P. Morgan Chase, Citigroup, Wells Fargo and Goldman Sachs kicked off earnings season...

Oyo CEO says aggressive US expansion continues, defends investor SoftBank

October 15, 2019

October 15, 2019

Ritesh Agarwal, founder and CEO of OYO OYO Japanese tech conglomerate SoftBank may be struggling with its investments in WeWork...

Netflix faces its final quarter of calm before the streaming wars begin

October 15, 2019

October 15, 2019

Netflix CEO Reed Hastings. Philippe Huguen | AFP | Getty Images This quarter is Netflix‘s calm before the storm. The...