hey it's patti scharf CPA and co-founder ofcatching clouds the leader in e-commerce accounting today I want to talk aboutAmazon and specifically their sellable versus unsellable inventory all right sothere always returns when you're selling on Amazon it's just kind of a fact oflife all right so what happens is when people send back their products Amazonwill take a look at them and they will put it into one of two categories eithersellable or unsellable if it goes to sellable whether the people who boughtit originally whether they used it or not or turn it back in pristinecondition Amazon will just resell it sometimes it'll sell is used sometimesnew you're kind of it's kind of a crapshoot and there's nothing you can doabout it Amazon just does whatever they're going to do so what ends uphappening is if there are some products that are sellable but they're kind of alittle bit used you might get some negative feedback on your listing fromcustomers who like buy the used products as one would expect but that's just kindof it's kind of what happens when you're selling on Amazon okay so that's whathappens with sellable however if the products are damaged and damaged enoughit will go to unsellable they used to have a service I think they maybe stilldo where it's kind of an inspection service where they can inspect theproducts they can maybe you know gussy it up a little bit and make it looknicer and turn it into sellable so you can still turn around and sell thatproduct otherwise if it's just totally trashed then they'll just trash it butif it's it could be resold or you know Amazon's really not quite sure what todo with it they think it's unsolvable but but they want to know what you wantto do with your products this is where you come in with everything that'sremaining in unsellable you have to make an active decision on how you wantAmazon to handle your inventory whether you wantto dispose of it or you want to remove it if you dispose it and you tell Amazonyes dispose it here's what happens Amazonsays great they take ownership of the products you have like relinquishedresponsibility for that they will take it and what they do is they get agigantic container and they throw those products in there anyone from cellarABCDE they throw all into a container and there are some buyers out there whowill go and they will buy this build container sight unseen and they'retaking their chances that there are actual products that they can clean upand sell that are in there and what they will do is they will turn around they'llrelist them on Amazon they may list them on your listing and then when it goes tothe customer if the customer doesn't like it and think that they're gettingripped off they will send it back again and they may leave negative reviews onyour listing so that is something to be aware of when you dispose of productshowever if you decide to remove products Amazon will say great got it no problemand they will send it back to you now when you sent in all your products thefirst time chances are you sent in a giant like the whole bushel of productsyou sent it to them so you got some discounts and stuff on shipping when itcomes back to you it's gonna be coming back one by oneand even though Amazon may get stuff out to customers really quickly when itcomes back to you it's gonna take 3060 days maybe even longer so it's comingout piecemeal one by one it's coming back really slowly it's coming back youknow it's going to be more expensive the shipping when it comes back to you butthe good news is you know what's happening with your products you youknow for sure it's in your own possession nobody else is going to berelisting substandard products on your listing all right so here's what youneed to do you need to decide whether you want to dispose of the products orremove the products and in Amazon seller central you can seta setting that will tell it to always dispose or always remove whatever it isyour preferences or you you can set none of those and you can just make adecision on a case-by-case basis and when you do that I would recommend thatyou do that at least weekly go in there check stuff out make your decision onhow you want to handle your products but here's the thing you're not going to beable to see like snapshots or unit by unit information you you're gonna haveno visibility into what these products look like so you should probably justmake an educated decision on what it is you want to do with your inventory onceit's being returned back to Amazon because what you don't want to havehappen is you don't want it to sit in unsellable inventory for weeks monthsyears because once you pass that year threshold Amazon's going to startcharging you long term storage fees which are like ten times as high as yourregular storage fees so this is definitely a decision you want to makeand you want to take an active approach on it one last comment for you is whenyou have made decisions around your inventory and you know that you'regetting rid of product whether it's disposed or whether you're removing itmake sure that you let your accountants know what you're doing with it let themknow the quantity of of units that you're getting rid of what the SKU iswhat the original cost is so that they know how to treat that in yourfinancials because you may have some numbers that are like artificially toohigh or low depending on assumptions that they're making if you don't givethem the actual detail to make good educated choices in keeping yourfinances up to date I think that's it if you have questionslet me know leave comments down below if you've had any experience with likepositive or negative with any of these products that have been returned shareit with others people like to hear about what's going on out in the world so Ihope you like my video if you did please like comment and share if you haven'talready please subscribe and I'll catch you later.