{"id":11627,"date":"2018-03-02T12:22:04","date_gmt":"2018-03-02T12:22:04","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=11627"},"modified":"2020-09-24T12:23:15","modified_gmt":"2020-09-24T11:23:15","slug":"amazon-fba-fees-changes","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/amazon-fba-fees-changes\/","title":{"rendered":"Amazon to Increase FBA Fees and Set Storage Limits"},"content":{"rendered":"

Amazon is rolling out a major update to FBA fees by charging long-term storage fees on a monthly basis rather than biannually. Additionally, they are also making a small increase to monthly inventory storage fees and limiting access to storage for sellers with an Inventory Performance Index<\/a> below 350. The changes to FBA fees are outlined below.
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1. Monthly Inventory Storage Fees<\/h1>\n

Starting 1 April 2018, monthly inventory storage fees will be increased by $0.05 per cubic foot for standard-size and oversize items.<\/strong> This change will first be reflected in May 2018 charges for storage that occurs in April 2018.<\/p>\n

\"Monthly
\nSee the Monthly Inventory Storage Fees<\/a> section for more details.<\/span><\/p>\n

2. Long-Term Storage Fees<\/h2>\n

Starting 15 September 2018, long-term storage fees will be adjusted, and the assessment dates will be changed from a biannual basis to a monthly basis<\/strong>.<\/p>\n

\"Long<\/p>\n

See the Long-Term Storage Fees<\/a> section for more details.<\/span><\/p>\n

3. Minimum Long-Term Storage Fees<\/h2>\n

On 15 August 2018, Amazon will introduce a minimum charge of $0.50 per unit per month for items in <\/strong>fulfilment centres for 365 days or more<\/strong>. The greater of the applicable total long-term storage fee or minimum long-term storage fee will be charged.<\/p>\n

\"Min<\/p>\n

See the Minimum Long-Term Storage Fees<\/a> section for more details.<\/span><\/p>\n

4. Inventory Performance Index Score<\/h2>\n

The Inventory Performance Index is Amazon’s first step in setting a bar on inventory performance.<\/p>\n

Starting\u00a01 July 2018, Amazon may limit access to storage for sellers with an Inventory Performance Index below 350<\/strong>. Your score is updated weekly based on your ongoing inventory management.<\/p>\n

Sellers who maintain an index score of 350 or greater will have unlimited storage<\/strong> for standard size and oversize items (monthly storage fees and long-term storage fees still apply).<\/p>\n

Amazon provides sellers with their Inventory Performance Index score and offers recommendations on how sellers can improve their scores in three main areas.<\/p>\n

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  1. Out of stock inventory<\/strong>
    \nAmazon provides recommendations on what to restock and when. While staying in stock with the right ASIN can help increase a seller\u2019s Inventory Performance Index, there is no penalty for not restocking a discontinued or non-replenishable item.<\/li>\n
  2. Excess inventory
    \n<\/strong>Amazon offers a Manage Excess Inventory tool that helps sellers identify listings that may have excess inventory levels and provides data to help them get a better return on their investment. The tool highlights factors that may be limiting sales, suggests actions that initiate faster sales, and suggests a recommended sale price. It also gives recommendations like improving keywords, editing listings, and reducing costs through removals.<\/li>\n
  3. Stranded inventory
    \n<\/strong>This is inventory in fulfilment centres that doesn’t have an associated active offer \u2013 it means products that are sitting on warehouse shelves but cannot be sold because they aren\u2019t associated with any offers on the Amazon website.<\/li>\n<\/ol>\n

    See the FBA Storage Limits Changes<\/a> section for more details.<\/p>\n

    For more information on any of the changes covered, check out Seller Central<\/a> or contact Amazon directly.<\/p>\n

    FBA Seller Stephen Smotherman’s Thoughts<\/h2>\n

    Stephen from Full-Time FBA<\/a> offers his thoughts on what the Amazon fee increases and storage limits means for sellers.<\/p>\n