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Amazon has changed its FBA Inventory Storage Fees and Policy in 2018

Amazon has changed its FBA Inventory Storage Fees and Policy in 2018

To give Amazon sellers more convenience, Amazon has brought some favourable changes in its FBA policies and storage fees which are in effect from this April 2018. Many of the Amazon sellers are not aware of Amazon action and therefore we always keep on sharing every hack and knack of Amazon to keep our sellers updated. In this article, you will get to know every action of Amazon and its impact on Amazon sellers. Amazon says that, with these changes, you and your customers will be having more faster experience in the delivery of products. For FBA sellers, these changes will help them in improving their inventory and will let them manage it. 

What are the changes?

FBA Policy:

  • As per Amazon FBA policy, the sellers cannot create new shipment service to amazon when they are running with lower inventory storage limit.
  • If the inventory level exceeds the certain monthly limit, they will be charged with an overage fee of $10.00 per cubic foot.

Changes in Storage Fees:

1. Monthly storage Fees: Monthly storage fees have been increased by $0.05 per cubic foot for oversize and standard size items. These changes have been in effect since April 2018.

Prior to April 1, 2018

Storage month

Standard-size

Oversize

January – September

$0.64 per cubic foot

$0.43 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

2. Minimum Long-Term Storage Fees: Amazon has decided $0.50 per unit fee as a monthly minimum charge for keeping the items in Amazon fulfilment centres for a year or more.

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

3. Long Term Storage Fees: For the sellers who keep their inventory for a long term in Amazon warehouse, there are changes in fees adjustment policy. From the semi-annual basis, Amazon will now charge its sellers on monthly basis for long-term storage in its inventory. This change will be in effect from September 2018.

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

Changes for sellers with a Professional selling plan:

Amazon is now encouraging its sellers to improve and maintain their inventory efficiently. For this, Amazon is setting a bar on the Inventory Performance Index of the Amazon sellers with the professional selling plan and then accordingly charge them for their inventory. 

By July 2018, Amazon is thinking to set a bar with 350 Inventory Performance Index. Amazon will update your score every week depending on your existing inventory. With the new changes, Amazon has brought new opportunity for the sellers who have 350 or more index score will be allowed to keep their storage unlimited. The sellers can keep both the standard size and oversize items but a point to note is, the standard fees for monthly storage and long-term storage will be charged.  

How Amazon will track your Inventory?

In the upcoming month of July 2018, Amazon is going to mark the storage limit of your inventory. Prior to every quarter cycle starting, Amazon will evaluate storage limit and if your inventory score is less than 350, it will notify you about it. In case, if your inventory exceeds the monthly storage limit, you will be charged an Inventory Storage Overage Fee. Amazon sellers with professional selling Plan also need to maintain their inventory index score of 350 or more. 

How can you avoid long-term storage fee? 

With the change in FBA policy, you should need to maintain your inventory level and maintain the storage limit else you might be charged with an extra overage fees as per cubic per foot rather as per number of items and products in the inventory. To maintain your account, you can ask for Inventory Health reports and Inventory Age after signing into your Amazon seller central account. Identify the ASINs that are costing you a huge amount and long-term storage fee and try out to clear out the inventory as soon as possible from the Amazon fulfilment centres. 

Final words

Amazon always keeps on adding perks to its sellers and buyers experience. With its changes in FBA policy and storage fees, Amazon has brought many conveniences for its sellers in managing their inventory. The sellers can manage their regular inventory and analysis their account performance by asking their performance report every week and then manage their account and inventory. 

 

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