Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Dec 8 2016 11:08:20

Are Your Shocked by Your November Amazon FBA Storage Fees?

By: Ina Steiner

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After experiencing capacity issues during the busy holiday shopping period last year, Amazon announced in the spring it would raise storage fees for FBA sellers for November and December. 

This week, sellers started looking at their November invoices, and some said the fees were 4 to 5 times greater than previous months.

While many were philosophical, some sellers noted that Amazon still experienced delivery delays in November - in other words, they were forced to store more than they needed rather than risk going out-of-stock due to delays in getting inventory checked in to the warehouses.

What has your experience been with the new FBA fees, and have you had any problems with getting your inventory into Amazon fulfillment centers in recent weeks?




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Readers Comments

Perminate Link for Are Your Shocked by Your November Amazon FBA Storage Fees?   Are Your Shocked by Your November Amazon FBA Storage Fees?

by: TomH This user has validated their user name.

Thu Dec 8 14:17:25 2016

Even tho we pulled approximately 100 products from FBA in October and converted to FBM. These were products that we did not expect high demand for during the season.

Still our FBA storage for November was just about five times higher than October with little added product for the season.  

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This user has validated their user name. by: Ming the Merciless

Fri Dec 9 17:19:34 2016

The greed just never ends, does i?

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by: TomH This user has validated their user name.

Sun Dec 11 12:28:01 2016

@ Ming
''The greed just never ends, does i? ''
Of course not..... From $0.68 per cubic foot last year during the Xmas season to $2.25 a cubic foot is a bit more than (controlling amount of input to FBA) a control plan -- a bit of robbery -- just because they can.

They could have just denied sending in product they did not want to stock to control the amount of stuff in the warehouses.

Amazon also has a new wrinkle for when they do not want more of a particular product; they require that the seller checks off on a statement that the seller understands sending in unwanted stock (according to Amazon Bots). I've so far this season sold more of that stock than not. So much for their ''vaulted'' programming.

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by: Chicago48 This user has validated their user name.

Mon Dec 12 07:01:09 2016

Before there was FBA, all the sellers were FBM and stored items in their basement, garage or storage center.  If FBAers don't want to pay AMZ fees, they should go back to where they started.

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by: topdog This user has validated their user name.

Mon Dec 12 08:35:28 2016

Yes, it was ridiculous, and quite shocking. We have no choice but to keep a decent stock level on hand during the holidays - many of our products have fast turn rates - else we risk being out of stock and having the replacements stuck at the loading dock for a week or longer.
If Amazon is so worried about stock levels at their warehouses, then they should cut back on the same Chinese crap that killed eBay. I concur with TomH - this was more than a move to control stock levels, and at least as much a profit grab. They know sellers are between a rock and a hard place at the holidays.  

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by: Jester This user has validated their user name.

Mon Dec 12 09:25:21 2016

I removed almost 200 items and slashed prices on another 400 items to liquidate slow moving items. And although I knew the fees were coming I was shocked in the dollar amount. I think it was about 4-5 times the usual rate. However things have been flying off the shelf and I have succeeded in moving some old stock and new stock. Sales on Amazon have been great for the 4th quarter. Ebay's sales have picked up also but they are still about about 50% or so of what they were for us in 2012 with about the same amount and quality of items. On ebay we are selling only about 10% less item wise but the selling prices are now about 50% less than they were. And the traffic is about 75% less as far as views go on eBay.

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This user has validated their user name. by: RKTOYS

Mon Dec 12 09:57:48 2016

Something the non-toy sellers here may not be aware of is that FBA is the only way to bypass the annual lockout if your sales were poor in September/October.  There have always been more than enough red flags to prevent me from doing it but I can see why others would and why Amazon saw an opportunity to squeeze them.

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by: TomH This user has validated their user name.

Tue Dec 13 22:11:57 2016

RKTOYS is absolutely right. Toys, Games and even puzzles (same category) are huge in sales on Amazon the last quarter of the year.

As a practical matter, even if you qualify otherwise, You need to be FBA in that category for the xmas season. We are sellers oriented to that category and over 50 percent of our annual profit derives from there.

Even jigsaw puzzles do extremely well -- basically a no issues product that sells across all age and religious and racial groups. For every 100 refunds/returns I can remember I doubt there have been 0.5 for jigsaw puzzles.



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