As an Amazon FBA seller, you are aware of the importance of storage to your operation. While keeping your products available to clients and in stock is important, you also need to watch out for overpaying for storage. Long-term storage fees are one method by which Amazon assesses storage fees to vendors. These fees might easily mount up and reduce your profits if you’re not attentive.
Long-Term Storage Fees and the Identifiers
For products that have been kept in its fulfillment centers for longer than 365 days, Amazon charges FBA sellers long-term storage costs. Two times a year, on February 15th and August 15th, these fees are levied. The cost varies from $0.15 to $6.90 per unit depending on the size and age of the product.
It’s crucial to keep track of your inventory and sell items before they go bad if you want to avoid paying long-term storage fees. The FBA Inventory tool can be used to find ASINs that are subject to the old inventory surcharge, including those that will be in the next 60 days. Sellers can calculate the number of items that will remain in the fulfillment center for more than 181 days until the next inventory cleanup date by filtering inventory by time in the center.
Here are some of the ways you can avoid long-term storage fees on Amazon FBA.
✅Monitor Inventory Age
✅Selling Slow-Moving Products
✅Setting Up Automatic Removals
✅Using Amazon FBA Disposal Service
✅Optimizing Inventory
Monitor Inventory Age
Inventory age is the period of time a product spends in Amazon’s storage facility. The cost of storing a thing increases as it remains there for an extended period of time. It’s crucial to maintain track of the age of your goods to prevent paying inflated long-term storage costs. A new aged inventory surcharge will be implemented beginning on April 15, 2023, for products that have been in storage for 181 to 270 days. The surcharge rate will increase for inventory that has been in storage for 271 to 365 days. All products, with the exception of apparel, shoes, bags, jewelry, and watches in the US, will be subject to the premium, which will be added to the monthly inventory storage fee.
Selling Slow-Moving Products
It’s crucial to sell your goods before they deteriorate too much to avoid paying long-term storage fees. Consider decreasing the price or launching a promotion for products that aren’t selling well to boost sales.
Setting Up Automatic Removals
Additionally, you can program automatic removals for slow-moving items or items that have been too long in the warehouse. This will lower your long-term storage costs and boost your bottom line.
Using Amazon FBA Disposal Service
You can use Amazon’s FBA disposal service to have things removed from the warehouse if they are broken or unsellable. By doing this, you’ll be able to avoid paying for long-term storage of goods that aren’t selling.
Optimizing Inventory
Optimizing your inventory is another strategy to avoid paying long-term storage fees. Focus on stocking items that are in high demand rather than overstocking items that aren’t selling well.
Extra Tip: How to check the estimated long-term storage fees
First, sign in to Amazon Seller Central, then select “Inventor” and “FBA inventory” from the menu. Then, for every one of your FBA items, you can view the Sales summary, Available quantity, Inbound quantity, Inbound quantity, Unfulfillable items, and Inventory age. Additionally, SKU, ASIN, and other information are searchable.
Conclusion
We have gone over all the necessary points that you should look out for when it comes to saving money on long-term storage fees. You need to pay close attention to your storage strategy to ensure your business stays profitable. Long-term storage fees can quickly eat into your profits if you’re not careful, but if you are careful, you can save a lot and increase your profitability.
By implementing these strategies, you’ll not only save money but also create a more efficient and streamlined storage process that will help your business grow and thrive. If you have anything more to know, please let us know via our mail address info@ecomclips.com.
