This is your semi-annual reminder that Fulfillment by Amazon long term storage fees hit 15 August. There are a few key things to note as we approach 15 August.
Long Term Storage Fees Assessed on All Inventory
A change that Amazon announced at the end of last year, was that Amazon will be assessing long term storage fees on all inventory. It used to be that you wouldn’t be assessed on the first unit, but that is no more.
Be careful what you create removal orders for!
This is particularly concerning, since we’re approaching Q4, but if you create a removal order between now and August 15th for “aged inventory” (e.g. those units that have been in a fulfillment center for longer than 6 months), you cannot send replenishment inventory until 1 January 2018! In other words, if you think you will sell these products during Q4, you may have to eat the storage fees.
Amazon doesn’t plan on doing a free removal promotion
Its only $0.50 a unit, but people seem to love the free removal promotions. Unfortunately, this time around, Amazon is being very clear that they don’t plan on doing any of the sort. Right now, Amazon is not hurting for storage space, or so they lead us to believe. In fact, I received an e-mail in the past week with a free storage fee promotion. Quite the turn from a year ago!
Think rationally about long term storage fees
Many folks see storage fees and start to think of how they can be avoided. That is logical, and its a good plan to do early on. Once Amazon starts sending out notices about the annual fees though, I would argue that you are too late. The fact is, storage fees are a cost of doing business. My fees, if I make no sales of my aged inventory between now and 15 August, will be less than $150. I can live with that. In fact, I won’t even lose sleep over that. So I would encourage you, please, think rationally, don’t go overboard, and don’t risk not being able to send in more of an ASIN during Q4!
Care to share what your estimated long term storage fees will be?