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.