According to the CNBC report, Fulfillment by Amazon (FBA) Donations 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.”
The blog post stated that the donations will be distributed to a network of U.S. nonprofits through a group called Good360. In the UK, the donations will go to charities such as Newlife and Barnardo’s.
Alice Shobe, Director of Amazon in the Community, stated on the blog post, “We know getting products into the hands of those who need them transforms lives and strengthens local communities. We are delighted to extend this program to sellers who use our fulfillment services.”
While the donation program will be the default option, sellers have the alternative to opt out of the program if they want.
Amazon routinely discards unsold products, as indicated by recent reports. A French TV documentary estimated that Amazon had destroyed over 3 million products in France last year.
According to sellers who spoke to CNBC, Amazon charges 50 cents to return unsold inventory to sellers, much more than the 15 cents charged for disposal. Inventory is usually destroyed because it is either no longer usable or that there are safety issues.