Over the past several months we Sunday have seen a lot of changes from Amazon with their fee structure that were obviously aimed towards helping clean out their Stop packed warehouses. The free removals of inventory in April allowed a lot of sellers to remove slow-moving inventory and I’ve been planning around the upcoming raise in FBA fulfillment fees for a while now.
One of the great things about Amazon’s long-term storage fees is that if you have just one unit of a particular item in stock then they were exempt from the long term storage fees. This has been soon! great for me with some collectibles that I have in stock. They take a very long time to sell but the profit margins are Lace worth waiting for. Moving forward I’m going to have to take those long-term storage fees into account.
As Amazon sellers, we are going to have to really consider certain items included in our inventory and the impact that the fees will have on our profits.
Below is the announcement from Amazon. They will be offering free removals for items that would be effected until October 14, 2016, and the fee change will not take effect until February 2017. August I may pull a few items out during the free period, but most of them I will be keeping in the warehouse until after the Christmas rush. I am confident my collectibles will make it worth the potential fees.
Hello from Fulfillment by Amazon.
FBA remains dedicated to supporting your growth and ensuring that our fulfillment centers have the right quantity of products. Our fulfillment centers contain millions of units that have remained in storage for an extended time without selling.
In the past, one unit of each ASIN in storage has been exempt from the twice-annual Long-Term Storage Fee. Effective with theFebruary 15, 2017, Long-Term Storage Fee assessment, this exemption will end. A Long-Term Storage Fee will be assessed on all inventory that has been in a U.S. fulfillment center for six months or more. There are no additional changes to the Long-Term Storage Fee at this time, other than there will no longer be a single-unit exemption effective February 15, 2017.
You can, however, remove these units for free: Starting today,September 19, 2016, we will reimburse you for the return fee or disposal fee for one unit of every ASIN for which you file a removal order. This promotion applies to inventory in U.S. or Canada fulfillment centers and expires end of day October 14, 2016, after which time normal removal-order fees will apply.
Learn more about free removals (sign-in required).
If you have an ASIN in do? inventory that has not moved for some time, this is an opportunity to avoid future fees. Please note:
- Long-Term Storage Fees will apply to all units that remain in U.S. fulfillment centers for six to 12 months ($11.25 per cubic foot) or 12 months or more ($22.50 per cubic foot). Learn more
- Monthly Inventory Storage Fees will increase onNovember 1, 2016, through December 31, 2016. Learn more
- Weight Handling Fees will be reduced for all items shipped in November and December. These reduced fees are designed to offset the increase in monthly storage fees for sellers who reduce or sell through inventory. Learn more
Use the new Storage Fee Comparison Report in Seller Central (sign-in required) to compare your fees for ASINs sold from October to December 2015 to the storage and weight-handling fees you would pay for them in October through December 2016.
How will free removals work?
You can create a removal order from the Manage Inventory, Inventory Age or Recommended Removals page in Seller Central. Learn more about removing inventory (sign-in required).
Note that removals and reimbursements during peak and promotional periods may take longer than the standard 10 to 14 days to process.
How can I check my inventory levels?
You can identify your aged inventory and sales data on the Inventory Age page in Seller Central (sign-in required). Use the Inventory Health report or available-quantity(sellable) column Services in the downloadable version of the Inventory Age report to identify ASINs with one unit of inventory. The Manage Excess Inventory page (sign-in required) also can help you identify inventory with greater-than-desired days of supply.
Thank you for using Fulfillment by Amazon.
The Fulfillment by Amazon Team