Author Topic: New FBA LTS Fees, Storage Limits, Monthly Fee Increase  (Read 534 times)

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uncleleroy

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New FBA LTS Fees, Storage Limits, Monthly Fee Increase
« on: March 03, 2018, 03:45:41 AM »
Hello from Fulfillment by Amazon,

In 2018, we are adjusting our FBA storage fees and policies to encourage improved inventory management, which will help your products be received and delivered to customers more quickly. These changes will take place throughout 2018. We are informing you now so you can plan for these changes.

Changes for all FBA sellers:

    Monthly Inventory Storage Fees: Starting April 1, 2018, monthly inventory storage fees will be increased by $0.05 per cubic foot for standard-size and oversize items. This change will first be reflected in May 2018 charges for storage that occurs in April 2018.  See the table below and Monthly Inventory Storage Fees for more details.
    Long-Term Storage Fees: Starting 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. See the table below and Long-Term Storage Fees for more details.
    Minimum Long-Term Storage Fees: On August 15, 2018, we will introduce a minimum charge of $0.50 per unit per month for items in fulfillment centers for 365 days or more. The greater of the applicable total long-term storage fee or minimum long-term storage fee will be charged. See the table below and Minimum Long-Term Storage Fees for more details.

Changes for sellers with a Professional selling plan:

Through the inventory management tools and FBA storage fee structure, our goal is to encourage efficient inventory management that benefits you, customers, and Amazon. While we continue to invest in our fulfillment network to better serve your business, at times we experience physical constraints on inventory capacity during key shopping seasons. To help minimize these constraints, we want to continue to allow the most efficiently managed inventory to flow through the network, while limiting less efficiently managed inventory.

The Inventory Performance Index is our first step in setting a bar on inventory performance. Beginning July 1, 2018, we may limit access to storage for sellers with an Inventory Performance Index below 350. Your current Inventory Performance Index score is 525, which indicates you are doing a good job managing your FBA inventory. Your score is updated weekly based on your ongoing inventory management. Sellers who maintain an index score of 350 or greater will have unlimited storage for standard‑size and oversize items (monthly storage fees and long-term storage fees still apply). See the table below and FBA Storage Limits Changes for more details.

Changes for sellers with a Professional selling plan who do not maintain an Inventory Performance Index score of 350 or greater:

Starting July 1, 2018, storage limits will be evaluated every three months on a quarterly cycle. If your Inventory Performance Index is less than 350 six weeks before the start of a quarter, you will be notified of your potential storage limits. If your Inventory Performance Index score is still less than 350 at the end of that quarter, those limits will apply for the next quarter. See the table below and FBA Storage Limits Changes for more details and examples.

Under the FBA inventory storage limits policy, you will not be able to create a new shipment to Amazon until your inventory level drops below your storage limits. If your existing inventory exceeds your storage limits for a given month, we will also charge an Inventory Storage Overage Fee on the portion of your inventory that exceeds your storage limits, in addition to monthly inventory storage fees and, if applicable, long-term storage fees. The overage fee will be charged monthly at $10.00 per cubic foot, based on the daily average volume of inventory that exceeded your storage limits throughout the month. We will be updating our tools to reflect cubic feet of storage instead of the number of units that we currently show.

 
Monthly Inventory Storage Fees
Prior to April 1, 2018
Storage month                       Standard-size                     Oversize
January – September           $0.64 per cubic foot         $0.43 per cubic foot
October – December            $2.35 per cubic foot         $1.15 per cubic foot

April 1, 2018 and after
Storage month                        Standard-size                  Oversize
January – September           $0.69 per cubic foot         $0.48 per cubic foot
October – December            $2.40 per cubic foot         $1.20 per cubic foot
 
Minimum Long-Term Storage Fee
August 15, 2018 and after
Inventory assessment date    Items in fulfillment centers 365 days or more
Monthly (15th of every month)    $0.50 per unit
 
Long-Term Storage Fees
Prior to September 15, 2018
Inventory assessment date                            Items in fulfillment centers 181 to 365 days    Items in fulfillment centers 365 days or more
Semi-annual (February 15 and August 15)                  $11.25 per cubic foot                                            $22.50 per cubic foot

September 15, 2018 and after
Inventory assessment date                     Items in fulfillment centers 181 to 365 days    Items in fulfillment centers 365 days or more
Monthly (15th of every month)                                   $3.45 per cubic foot                                              $6.90 per cubic foot
 
Professional Selling Plan Storage Limits
     July 1, 2018 and after
Inventory Performance Index
Score less than 350
(6 weeks before the quarter ends AND
 at the end of the quarter)
   Score of 350 or more
Storage limits                                                             Updated quarterly                                       Unlimited
Monthly Inventory Storage Overage Fee    $10.00 per cubic foot over the storage limit                    Not applicable
 
For more information about these upcoming changes, including fee schedules, definitions, and examples, visit amazon.com/fba-fee-changes and amazon.com/fba-storage-limits-changes. You can track your Inventory Performance Index on the Inventory Performance Dashboard. This free tool provides a hub for optimizing your FBA business, including customized recommendations to grow your sales and reduce costs.
 
We welcome your feedback on these announced changes at fba-fee-announce-feedback@amazon.com. The FBA business team will review each comment.
 
Thank you for selling on Amazon.

Sincerely,

The Fulfillment by Amazon team



Southern Jewel's Fab Finds

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Re: New FBA LTS Fees, Storage Limits, Monthly Fee Increase
« Reply #1 on: March 03, 2018, 11:19:19 AM »
Thanks for posting.
Fees, Glorious Fees!
<eye rolling>

uncleleroy

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Re: New FBA LTS Fees, Storage Limits, Monthly Fee Increase
« Reply #2 on: March 03, 2018, 07:36:14 PM »
I was wondering in the last few months when Amazon would go from 2 semi-annual fixed dates to assess LTS fees to a rolling 6-month system. Seems like my question was answered. Units in LTS for over a year will be charged 50 cents per unit per month. Same cost as it is to recall the item from the warehouse. So, either way, Amazon is going to make a killing.

I can just see it now: All these newbies watching these "get rich quick" videos on you tube, buy a truck load of stock, then get pillaged financially when the products don't sell after the rolling 6 months. And if they don't notice then, they will notice once a year has passed and it becomes a monthly thing. And then the sellers will come to the forums and cry about how big and bad Amazon is.

Southern Jewel's Fab Finds

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Re: New FBA LTS Fees, Storage Limits, Monthly Fee Increase
« Reply #3 on: March 05, 2018, 09:26:54 AM »
Goodness, I can remember wayyyyy back when and it being .10.
Rather than have the items sent back or destroyed, it was an easy choice to decide to let Amazon just keep in inventory.

Yep.
Newbies gonna beeeyatch.

uncleleroy

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Re: New FBA LTS Fees, Storage Limits, Monthly Fee Increase
« Reply #4 on: March 09, 2018, 04:02:34 AM »
At least it is only .15 to let Amazon keep the stuff. Still, it sucks that I would pay Amazon to take my inventory from me so they can turn around and sell it. Nice little racket Amazon has going there. Cost of Goods Sold is -.15.

  

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