AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Tue Sept 19 2017 22:59:31

Amazon Preps Warehouses for Holidays with FBA Offer

By: Ina Steiner

Sponsored Link

Amazon is raising FBA fees by a lot during the holiday shopping period to encourage sellers to clear out slow-moving inventory. It began the practice last year, partly in response to the problem that occurred in 2015 when it experienced capacity issues in its fulfillment centers.

Amazon is taking some of the pain away by offering free FBA inventory removal - usually it's quite costly to have the company return inventory (or dispose of it).

However, if sellers remove items through the special offer, they will not be able to send in any more of those items during the holidays (see below for specifics). That means sellers should be sure they really want to suspend sales of those items before ordering Amazon to return them.

Here's the letter Amazon sent FBA sellers:

Hello from Fulfillment by Amazon,
On October 1, 2017, monthly inventory storage fees will increase from $0.64 per cubic foot to $2.35 per cubic foot for standard-size items and from $0.43 per cubic foot to $1.15 per cubic foot for oversize items for October, November, and December. For a limited time, however, you can remove inventory for free to avoid these previously announced fees.

Starting today, September 19, 2017, FBA is waiving new removal-order fees for inventory that's currently in U.S. fulfillment centers. Act quickly before normal removal fees apply again.

To start, go to Manage Excess Inventory (Pro sellers) or FBA Inventory Age (Individual sellers) in Seller Central (sign-in required). Then choose Create removal order from the menu next to any FBA item in your inventory.

The new Inventory Performance Index (IPI) can help you identify which ASINs to remove. The IPI will show your excess inventory and the estimated costs of holding this inventory. 

If you remove inventory free of charge under this promotion, you will not be able to send in more units of these ASINs until your inventory levels fall below our projection of your sales for the next two months or until January 1, 2018. This sales projection is based on your average sales from the past 90 days. 

Note that removals during peak and promotional periods could take longer to process than the standard 10 to 14 days. Learn more about free removals (sign-in required).

The duration of the promotion is limited and may be discontinued at any time. Act now to take advantage.

Thank you for selling on Amazon.




Comments (2) | Permalink

Readers Comments

Amazon Preps Warehouses for Holidays with FBA Offer   Amazon Preps Warehouses for Holidays with FBA Offer

by: Chicago48 This user has validated their user name.

Thu Sep 21 20:27:22 2017

This is why everybody should convert back to FBM....FBA is a mess.  AMZ is building all these warehouses on the backs of FBA sellers.  Now they're telling them that the fees are going UP for slow moving items, something we FBMs don't have to worry about.  I have had items listed on AMZ since 2012, no problems, no threats.

Amazon Preps Warehouses for Holidays with FBA Offer   Amazon Preps Warehouses for Holidays with FBA Offer

This user has validated their user name. by: RKTOYS

Fri Sep 22 12:55:23 2017

The only upside to FBA is not getting wrecked on shipping overruns.  $4 is not enough to ship anything anywhere.  But sooner or later I expect Amazon to start charging sellers the difference.

They make noise about FBA not having the flat 99c fee of FBM but quietly replace it with a 99c picking fee.  Don't forget about comingling, where Amazon helps launder fakes and damages at your expense.



Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.