Don’t pay the extra fees if you don’t have to.
Amazon sellers who utilize FBA know that the longer their product sits in the FBA warehouse, the higher the risk of long-term storage fees. We’re here to help you avoid these fees and keep your Amazon business from suffering.
During February and August of each year, Amazon will issue a fee to each item that has been sitting in inventory for over 6 months. Since Amazon operates on a first-in, first-out model, they want the inventory in their warehouses to cycle through quickly.
Here’s how the fees work:
- 6-12 months in inventory: quantity x per unit volume x $11.25
- 12+ months in inventory: quantity x per unit volume x $22.50
Amazon helps make the process of identifying old inventory easy by providing an inventory health report. Sellers can clearly see how much inventory is at risk, how much inventory will be charged in the next long-term storage cleanup, and they’ll even project the fees associated with said inventory.
So why might items not sell on Amazon? There are a few reasons:
- The item doesn’t capture the buy box as often as it should. This can be due to seller rating, price, and fulfillment options.
- Products aren’t being viewed enough by customers.
- The product details page is not completed or incorrect, therefore customers are not able to make a wise decision before purchase.
- The price may be too high.
The best way to avoid the long-term storage fee is to make sure your oldest items sell first, especially if your products have an expiration date! Also, don’t send all of your inventory to FBA at once. Figure out your average sales for a certain time period and send only that amount. There’s no harm in sending more inventory as your levels get low, but you will pay the price if you have too much!
