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?
7 thoughts on “Resellers: Long Term Storage Fees hit 15 August!”
$433 for me, but I know I can sell everything in Q4. It’s $1.65/unit and I know I can recoup that loss in Q4, probably many times over vs. recalling and then storing till January 1st when the items are worth a lot less again.
What do you sell Ken that is so seasonal
Toys. I’ve been trying for years to find profitable niches outside of toys so all revenues weren’t in a single month or two, but there’s so much competition on Amazon these days.
Toys never did well for me. Dunno how you do it.
Toys used to be profitable year round, but thanks to Amazon’s ever increasing fees and increased competition toys are no longer profitable year round. And all of AZ’s stupid FBA requirements and time sucking workflows are making things less worth doing, even for Q4. Also they’ll restrict listings for some sellers but not for others. I’ve been selling on AZ forever now and yet I still see just launched sellers who are able to sell in listings that I cannot sell in. You’d think AZ would want longstanding, reputable sellers over just launched, newbie/unknown sellers. But nope, they do many things on an arbitrary basis.
I need to find something else to sell, or some other way to make money online that isn’t on Amazon.
Yea, toys are tough outside of Q4. I find some seasonal toys like water slides that do well in summer but I mostly stick to beauty, health, and grocery. However, summer is great time to start building Q4 toys inventory.
I find that I still sell some toys throughout the year, but nowhere near the volume as in Q4… I was actually surprised that I haven’t sold more from the most recent 70%+ Walmart/Target Toy Clearances…