
Not only does Amazon want to be the source for repeat purchases such as household staples, it also wants to showcase new products to entice shoppers. This month it kicked off a promotion to encourage sellers to launch brand new products with the goal of expanding selection on its site.
Amazon is offering sellers who use its Fulfillment by Amazon (FBA) program a chance to save on long-term storage fees, called LTSF or LTS fees.
Amazon is offering participating FBA sellers reimbursement for up to six months of long-term storage fees for new-to-Amazon ASINs in qualifying categories created between August 21, 2018, and November 30, 2018. The inventory must be received at a fulfillment center by December 5, 2018 in order to qualify for the promotion.
Amazon is excluding items in the Media category. Categories that do qualify include Apparel, Collectibles, Crafts & Sewing, Jewelry, Home & Garden, and Toys & Games, to name a few.
LTS fees are significant costs, and Amazon uses them in an effort to maximize storage space at its network of fulfillment centers. It doesn't want slow-moving inventory taking up space, especially during the busy holiday season when space is at a premium.
In March, Amazon announced a number of FBA fee changes. Among them: beginning September 15, 2018, long-term storage fees will be adjusted and the assessment dates will be changed from a semi-annual basis to a monthly basis. The changes are outlined in this
EcommerceBytes Newsflash article.
The new seller promotion shows another way Amazon can exploit its FBA program to build its product catalog and increase selection for shoppers, making its Prime program even more valuable to paying members.