Insight Into Amazon FBA Long-Term Storage Fees

Posted by Jimi Patel | August 31, 2018

The Amazon marketplace cleans up the long-term inventory kept in their storage houses in the months of February and August. The E-Commerce giant charges a fee of £441.25 per cubic meter on the product kept between six to twelve months in the storage. Whereas, the fee of £882.50 per cubic meter is being charged for the products kept for more than 12 months.

The Amazon FBA fulfillment centers are the right place for stocking the products, but the sellers must keep a close check that they are not paying extra charges. One must convert these products into a liquid form to speed up the sales. The sellers can take the services from the professional Amazon consultant eStore Factory.

Reasons for Existence of the FBA Long-Term Storage Fees

Most of the sellers cannot afford large storage houses and their rents to keep their products for a longer duration. Amazon provides the fulfillment centers to store the seller’s products at the long-term storage fees to get money for the commercial purpose. This even made the E-Commerce giant to cross their sales from 177.9 billion dollars from last year. The Amazon FBA consulting service experts can guide the retailers in a better way. Here are a few reasons for its existence:

  • The online marketplace states that by keeping the products in their fulfillment centers, they are helping the fast-selling products of the sellers to deliver quickly. Even the sellers who are not able to pay the fee of the large warehouses, the Amazon fulfillment centers work as a greater rescue.
  • The Amazon FBA consulting virtual assistant helps the sellers to know about the stock that is still lying pending with Amazon and the stock that has been converted and sold.
  • The E-Commerce giant has made a net income through all its channels of around 1.6 billion dollars in which these FBA fulfillment centers are included. This way, Amazon is fueling its commercial supremacy over all the online marketplaces.
  • Another reason for the existence of the long-term storage fee of the Amazon is that it will assist in the faster liquidation of the goods so that sellers do not have to pay some extra amount.

Amazon US FBA Long-Term Storage Fees

Amazon US FBA Long-Term Storage Fees

Amazon UK FBA Long-Term Storage Fees

Amazon UK FBA Long-Term Storage Fees

How Sellers can Work Upon their Storage Fees

Most of the sellers are not in a position to pay the FBA long-term storage fee due to monetary constraints. In this situation, they can take the help of the Amazon FBA expert to avoid the unnecessary expenses on the overstocked or the underlying goods in the fulfillment centers.

The sellers can avert this situation by carving out the strategies for the storage of their next stock and converting their leftover stock into sales. Even the sellers can sell these products before the two dates in a year, i.e. 15th February and 15th August. The faster selling of the products can be done through flash sales around some festivals or rare occasions. This will benefit the sellers in avoiding the FBA long-term storage fees.

To sum up, the sellers must calculate about their inventory beforehand so that they can keep a margin profit. This will never give them a shock when they get the stock charges from Amazon.

Published by Jimi Patel

Jimi Patel, is a Co-founder and CEO at eStore Factory, an Amazon SPN certified agency that serves as a one-stop solution for all your Amazon business needs. Having helped countless brands increase sales and grow their footprint on Amazon, Jimi provides the most practical and effective solutions for your business. He is highly skilled in developing and executing plans that align with your specific business goals and objectives. When not working, Jimi enjoys practicing yoga and traveling to new places. He is an avid reader and enjoys staying up-to-date on the latest trends and developments in the e-commerce industry.

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