Manage Amazon Fba

How to cancel amazon FBA and stop paying storage and fulfilment fees

What is amazon FBA and why sellers exit

Fulfilment by Amazon (FBA) lets you store inventory in Amazon's warehouse network and let them handle picking, packing, shipping and returns. You keep control of listings, pricing and stock levels, but you pay a monthly subscription (if you're on the Professional plan) plus per-item fulfilment fees and monthly storage charges based on your inventory volume and how long items sit in the warehouse.

The Professional selling plan costs A$49.95 per month (excl. GST), while the Individual plan charges A$0.99 per item sold. On top of that, you'll pay FBA fulfilment fees starting from around A$3.64 per small item, plus storage fees that vary by season and cubic space your inventory occupies. These costs add up fast, especially if your inventory isn't selling or if you've decided to sell elsewhere.

Sellers cancel Amazon FBA for several practical reasons: rising storage fees on slow-moving stock, wanting to shift to a different platform, reducing complexity, or exploring cheaper fulfilment alternatives. Understanding how cancellation affects your billing and inventory is critical before you take action.

Pricing and fees you'll encounter

Your costs break down into three categories: selling plan subscription, fulfilment fees and storage fees. Below is a clear breakdown of what you're paying and when.

Why you should cancel now

If you're paying monthly subscription fees for inventory that's not moving, or if storage costs are eroding your profit margins, cancelling stops those charges immediately. Stopping your Professional plan removes the A$49.95 monthly subscription cost, though you'll still need to clear inventory from Amazon's warehouses to avoid ongoing storage and removal fees.

Cancelling also gives you back control: you can use a cheaper fulfilment partner, dropship, or manage inventory yourself. Many sellers report that Amazon FBA becomes expensive at scale, especially during slow-selling seasons when storage fees spike.

Your rights as an australian consumer and seller

Australian Consumer Law protects you when Amazon FBA's service fails or when charges aren't transparent. Here's what you need to know before you cancel.

Australian consumer law and FBA cancellation

Under the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010), Amazon must provide services with due care and skill. If FBA services are faulty, misleading, or cause loss through system failure, you have the right to compensation or remedy. If Amazon charges you for services not rendered (for example, fulfilment fees after you've removed inventory), this may breach consumer guarantees.

Most importantly, you have the right to cancel a subscription or service agreement. Amazon must make cancellation simple and not trap you in ongoing billing cycles. If you find you cannot cancel through normal channels, or if Amazon continues charging after you've requested cancellation, escalate to the Australian Competition and Consumer Commission (ACCC).

Key protections for australian sellers

You're protected if Amazon's service is not fit for purpose (for example, if your inventory is damaged in their warehouse or if they ship to the wrong address repeatedly). You can request refunds for services not delivered or for breach of their obligations. Keep records of all cancellation requests, billing charges and support correspondence.

The ACCC is your escalation point if Amazon refuses to process a valid cancellation or continues billing after you've cancelled. Stopee has helped thousands of Australian consumers and sellers understand their rights against big platforms, and we encourage you to document every step of your cancellation attempt so you have evidence if you need to lodge a complaint.

Methods to cancel amazon FBA

You have two main paths to cancel: through Amazon Seller Central (fastest) or by formal written notice (slower but creates a paper trail).

Cancellation via amazon seller central

The quickest way to stop your Professional plan subscription is to deactivate it directly in your seller account. This stops the A$49.95 monthly charge immediately, though your inventory remains in Amazon's warehouses and continues to incur storage fees until you remove or dispose of it.

Log into your Amazon Seller Central account, navigate to Settings, then Selling Preferences. Find your selling plan, click Edit and select Cancel Plan. Amazon will ask you to confirm and may offer discounts to keep you; decline and proceed to cancellation. This usually takes effect immediately, but check your next invoice to confirm the subscription fee has stopped.

Formal written cancellation request

If you want a paper trail or if you're disputing ongoing charges, send a formal cancellation letter to Amazon's Australian FinOps Tax department. This creates documented evidence of your cancellation request, which is valuable if you later dispute charges or file a complaint with the ACCC.

Address your letter to Amazon's Australian business address, clearly state your seller account name and ID, specify that you're cancelling your FBA service effective immediately, and explain your reason. Include your contact email and phone number. Allow 10-14 days for acknowledgment; follow up via Amazon Seller Central support if you don't hear back.

Parallel cancellation approach

Pro tip: use both methods. Submit your formal written cancellation and simultaneously cancel via Seller Central. This ensures the platform processes your request while you also have documented proof of your cancellation intent. If postal delays cause issues, your Seller Central cancellation already protects you from ongoing subscription fees.

Step-by-step cancellation process

Follow these steps to cancel your Amazon FBA Professional plan and manage your inventory exit cleanly.

Cancel your selling plan subscription via seller central

1. Log into Amazon Seller Central using your seller credentials.
   • If you've forgotten your password, use the "Forgot password" link on the login page.
   • Enable two-factor authentication if prompted for security.
2. Navigate to the Settings menu (usually top-right corner of the dashboard).
   • Look for a gear icon or "Settings" text.
3. Select Account Info or Selling Preferences (wording varies by dashboard version).
   • This section shows your current plan and subscription status.
4. Find your Selling Plan section and click "Edit" or "Change Plan".
   • The system will show you your Professional plan and the monthly A$49.95 charge.
5. Select "Cancel Plan" or "Downgrade to Individual Plan" (if you want to keep selling on a pay-per-item basis).
   • Warning: cancelling the plan does not remove your inventory automatically. You must clear your FBA inventory separately or you'll continue paying storage fees.
6. Confirm your cancellation by clicking through any final warning screens.
   • Amazon may offer retention discounts; ignore these and proceed to final cancellation.
7. Check your email for a confirmation message from Amazon within minutes.
   • Verify the confirmation states your plan was cancelled effective immediately or on the next billing date.
8. Log back into Seller Central within 24 hours to confirm the subscription fee no longer appears in your account.
   • If it still shows, contact Seller Support to escalate.

Remove or dispose of your inventory

Your next critical step is clearing inventory from Amazon's warehouses. If you don't, storage fees continue accruing monthly, and you'll face removal or disposal charges on top.

1. Navigate to the Inventory section in Seller Central.
   • You'll see a list of all your FBA inventory with SKU, quantity and storage fees.
2. Select all items you want to remove (or filter by status to select groups).
   • Pro tip: use the "Select all SKUs" checkbox if you want to exit FBA completely and remove everything.
3. Choose "Create removal order" from the bulk-action menu.
   • Amazon will calculate removal fees based on weight, size tier and quantity.
4. Decide whether to remove items (have them shipped back to you) or dispose of them (Amazon destroys them).
   • Removal is cheaper per unit but slower; disposal is faster but you lose the inventory. Compare costs carefully.
5. Review the removal order summary, which shows estimated fees and processing timeline (usually 7-21 days).
   • These fees are charged when the removal order completes, not when you create it.
6. Submit the removal order and note the order ID.
   • Track the order status in your Inventory section to know when it completes and you're charged.
7. Expect removal processing to take up to three weeks during peak periods (September-December).
   • If you've requested removal, watch for your shipment and update your tracking details with Amazon if the carrier contacts you.

Send formal written cancellation notice (optional but recommended)

1. Prepare a cancellation letter in English addressed to Amazon's Australian FinOps Tax department.
   • Include your full legal name (as registered with Amazon), seller account name, seller ID and any tax file number linked to your account.
2. State clearly: "I request immediate cancellation of my Amazon FBA (Fulfilment by Amazon) services effective [today's date]."
   • Specify any fees you believe are incorrect or any ongoing charges you dispute.
3. Include your contact email address and phone number.
   • This ensures Amazon can acknowledge receipt and answer questions about final billing.
4. Send the letter via Australia Post (registered mail if you want proof of delivery) to Amazon's Australian business address.
   • Warning: postal delays can take 5-10 working days. Do not rely on mail alone; use Seller Central cancellation in parallel.
5. Keep a copy of your letter and the postage receipt as evidence.
   • This is crucial if you later need to lodge a complaint with the ACCC or dispute charges.
6. Follow up via Amazon Seller Central support within 10 days if you don't receive written acknowledgment.
   • Reference your sent letter and ask for confirmation of receipt and processing.

What happens after you cancel

Cancellation doesn't end on the day you click submit or post your letter. Here's what to expect in the days and weeks after.

Timeline and final billing

Your Professional plan subscription fee stops immediately when you cancel via Seller Central, or within 1-3 business days if you send written notice. However, storage fees and removal charges continue until your inventory leaves the warehouse. Final billing can take 30-60 days to settle because removal orders process slowly and fees are charged on completion dates rather than order dates.

Expect one final invoice covering any remaining storage, removal and disposal fees from the period between your cancellation request and the date your inventory fully exits Amazon's system. Check this final invoice carefully: if any charges appear for services after your cancellation date, dispute them immediately with Seller Support.

Refunds and credits

Amazon does not typically refund the monthly subscription fee if you cancel mid-month; most billing cycles are not prorated. However, if you can show that you cancelled before a specific billing date and were charged anyway, you can request a refund for that erroneous charge through Seller Central support or dispute resolution.

Storage fees and removal fees are not refundable once services are completed. Your only leverage is to dispute charges for services not rendered (for example, if Amazon charged you storage fees after your inventory was already removed). Keep removal order tracking numbers and completion dates to verify when services ended.

Pro tip: request a detailed account statement from Amazon before you finalize your cancellation. This shows every fee, charge date and service period so you can reconcile your final invoice and spot any errors early. Stopee recommends keeping this statement for your records in case you need to lodge a complaint with the ACCC later.

Account status after cancellation

Once you've cancelled your Professional plan, your seller account remains active but you can no longer use FBA services. If you switch to the Individual plan (A$0.99 per item), you can still sell on Amazon but must handle your own fulfilment or use a third-party logistics provider. If you want to close your seller account entirely, you can request account closure through Seller Central settings, though Amazon may retain your account data for compliance and tax purposes.

Common mistakes to avoid

Many sellers cancel their plan but forget the inventory exit, leaving themselves paying storage fees for months. Here's what Stopee has learned from consumer feedback and what you must not do.

Forgetting to remove inventory

This is the biggest and most costly mistake: cancelling your subscription but leaving inventory in Amazon's warehouses. You'll continue paying monthly storage fees (which can be A$2-8+ per cubic metre depending on season) on top of potential long-term storage penalties if items sit for over 365 days. Stopee has seen sellers pay hundreds of dollars in storage fees on items worth a fraction of that.

Always create a removal or disposal order immediately after cancelling your plan. Yes, removal fees apply, but they're usually lower than storage fees paid over several months.

Cancelling mid-month and expecting a refund

Amazon charges your Professional plan subscription monthly on a rolling cycle. If you cancel on the 15th of the month but your billing date is the 20th, you'll likely be charged for the full month. You can request a refund if this happens, but it requires disputing the charge and providing evidence. To avoid this, cancel on or just before your monthly billing date if possible.

Not documenting your cancellation request

If you only cancel via Seller Central with no written record, and Amazon later claims they never received a cancellation request and continues billing, you have no proof of your intent. Always screenshot your Seller Central cancellation confirmation and keep dated records of any emails or support tickets. If you dispute with the ACCC, you'll need evidence.

Ignoring removal order timelines during peak season

Warning: removal orders submitted between September and December can take 3-4 weeks to process. If you wait until November to cancel and request removal, your inventory may not leave the warehouse until January, costing you December storage fees. Cancel early if you know you're exiting FBA during busy seasons.

Checklist before and after cancellation

Use this checklist to ensure your cancellation is complete and you've minimized fees and exposure to dispute.

Comparing amazon FBA with alternatives

If you're cancelling because costs are unsustainable, consider these fulfilment alternatives to see if they fit your business better.

Fulfilment alternatives in australia

How stopee can help you cancel and dispute charges

Navigating Amazon FBA cancellation can be complex, especially when you're trying to minimize storage fees and dispute incorrect charges. Stopee specializes in helping Australian consumers and sellers cancel subscriptions and services, understand their rights, and recover money owed to them when companies fail to honour cancellation requests or refund policies.

If Amazon continues billing after you've cancelled, refuses to process your removal order, or charges you for services not delivered, Stopee can guide you through your options and help you escalate to the ACCC if necessary. We've helped thousands of consumers understand Australian Consumer Law protections and use them to challenge unfair charges. Visit Stopee.com to learn more about your rights and how to get support if your cancellation goes wrong.

Final thoughts and next steps

Cancelling Amazon FBA requires two separate actions: stopping your subscription and clearing your inventory. If you skip the inventory removal, you'll pay storage fees indefinitely. Document every step, keep screenshots and emails, and escalate to the ACCC if Amazon refuses to stop billing after your cancellation date.

Use Seller Central cancellation for speed and follow up with a formal written notice for documentation. Track your removal orders to their completion and review your final invoice line-by-line for errors. Australian Consumer Law is on your side; if Amazon's service is faulty or their charges are unjust, you have the right to seek remedy and compensation.

Stopee has helped thousands of Australian sellers and consumers cancel subscriptions, fight for refunds and understand their legal rights against large platforms. Start your cancellation today using the step-by-step process above, and reach out to Stopee if Amazon pushes back or continues billing after you've cancelled. Your exit from FBA should be clean, documented and free of surprise charges.