Coming soon: Long-term storage fee inventory cleanup


#1

August 15, 2020 is Fulfillment by Amazon’s (FBA's) next scheduled long-term storage fee inventory cleanup. On this date, inventory that has been in US fulfillment centers for more than 365 days incurs a long-term storage fee of $6.90 USD per cubic foot or a $0.15 USD per-unit long-term storage fee, whichever is greater.

The long-term storage fee is in addition to the monthly inventory storage fee.

FBA calculates inventory age on a first-in, first-out basis across the entire fulfillment network. Items sold or removed are deducted from the inventory that has been in the fulfillment network the longest, regardless of which unit was actually shipped or removed.

The Recommended Removals report automatically calculates, on an ASIN-by-ASIN basis, the number of items you would have to remove to avoid long-term storage fees—assuming no further sales. You may also use the Inventory Age and Inventory Health reports to identify the age of inventory by ASIN.

If you remove units of an ASIN that would be subject to long-term storage fees at the next inventory cleanup date, you won't be able to send us more units of that ASIN for three months after that date. The exception is your inventory of that ASIN falls below our projection of its sales for the next eight weeks.

For further details, see FBA long-term storage fees.


#2

How about we clean up the actual site first?

'Cause that’d be just super.


#3

Am I going to be charged long term storage fees on items I’ve had a removal order for since March?


#4

Can Amazon help please :
I have account since 2 years tried to launch the products but tagged as adult 2 years ago couldn’t sell so requested the staff to dispose and they were unable to do it and charged me 200 dollars for long term storage.
Here comes the thing - The Amazon help, on call said I or them cannot dispose it or create the order from the account so i have to pay long term storage until some one removes it from the warehouse ? common !


#5

As a book seller, we are mostly switching to FBM as the LTSF are killing us, not to mention constant warehouse damage in which reimbursements are zero over 50% of the time. And the fees going up every year. Add to that the newbies and Amazon bots running profits down to zero with constant repricing software. We see less and less FBA book sellers. I don’t know if that’s what they want, but that is what they are getting.

Glad to see the disposals are now donated to charity. I just hope they aren’t charities the sell on Amazon!


#6

We used to get emails that told us exactly what our long term storage fee was going to be and what day it would be assessed. I haven’t received one of those emails in quite a while :frowning:

The email that I just received saying to “click this link to preview fees” just gives me a list on my fulfillment reports that I have to go through and manually sum up to get an amount.

Why does it feel like this is a lack of transparency?

On a side note, we used to get emails with our reimbursement notifications, stating what the item was and how much we would be reimbursed. Why is Amazon not sending these details with their emails anymore?


#7

Oh, and thanks Amazon for not answering any questions or concerns posted here.
And, please make sure you post another survey question asking if Amazon being responsive to our needs !!


#8

What if Amazon lost our product in their warehouses for over a year? It was listed under Reserved for over a year. When they finally found the product and moved it to Available, our first year was gone. We are now receiving long-term fees when we never had the product available in the first place.


#9

Amazon doesn’t help me make any money, instead charging me monthly service fees and long term fees…how do I get rid of all my stuff…?


#10

Its becoming nightmare to manage inventory due to the pandemic, transportation delays and Amazon delays in receiving.
Its a shame on Amazon to put rules and policies that donot make sense and a mechanism to assess fees on sellers.
HOW:
Item availability is part of IPI. So I send my items lets say 100. I sell those in 3 days. Now my availability is zero. by the time next shipment can go it will be 3 weeks to 3 months. So my IPI score goes down due to this item. Amazon reduces storage limit and now my other items that are at FBA sitting for past 30 days occupy storage more than my storage limit. Now Amazon system sees overage and assess the overage per cubic feet! WHAT A SCAM?
By the way the storage limits put on our items has literally brought us to halt! we cant make inventory available when there are replen notifications and the availability brings our IPI score further down.
Please dont hurt the sellers that helped you AMAZON.


#11

Also,
The Amazon delays in fulfilling orders and FC transfers are causing open orders to grow which in turn hurts our sell through and there… our IPI score goes down and thereby the storage limit! and that will affect our ability to replenish inventory despite huge demand for our items. What a shame.

Its just becoming difficult to do business on amazon due to their cookie cutter and Robotic approach to everything.


#12

Easy. Price it all at a penny. Boom…sold.


#13

This is all about Amazon making more money, not being a partner to the millions of merchants in this market place, just considering the fact that they now will reveal the addresses to millions of us that do business on Amazon, that Amazon makes money on, gives you a good idea of Amazon’s priorities and motivations!


#15

I just got this news and I have no idea what this means. Am I going to be charged $6.90 every month?? I don’t understand why I didn’t get this news in July or August!!! It’s October right now and I am just getting this news!! Should I delete all of my books that have been on my account for over a year??? Someone please comment and help me.


#16

Since coronavirus the following has happened to me:

  1. My best selling products were repeatedly removed from prime shipping and delayed at receiving/transfer, causing a significant drop in my sell-through rate and significant decrease in “in-stock rate”, cratering my IPI.
  2. My worst selling products, being still in stock, became even worse because the above mentioned problems, increasing my excess inventory percentages.
  3. The above issues caused my metrics to crater, preventing me from sending in new inventory to replenish my best sellers, causing my metrics to drop further.
  4. The drop in storage limits threw one of my larger products into a HUGE overstock level, causing me to get charged $3000 in overage fees that are non-refundable according to amazon and eating the only cashflow i had during corona because i couldn’t get my best sellers into the damned warehouses thanks to amazon!
  5. I had to find and ship out very expensive large products to a 3rd party warehouse, costing me hundreds of dollars and will require me to RESEND the product back to amazon in the future, hurting my margins significantly because I was forced to remove them due to the inventory limit decrease.

All in all, amazon did EVERYTHING in their power to cost me a ton of money and prevent me from making a ton of sales, almost bankrupting us in the process. I am still at this very moment praying that the inventory I shipped in a month ago finally gets received by amazon or I will surely go bankrupt.


#17

Just noticed another $1000 charged to my account for removal fees and storage fees charged to me because amazon keeps cancelling my removal orders. I’ve had to re-submit removal orders 5 times since the “free removals” promotion happened.

It’s like amazon is trying to intentionally drag it’s a$$ to charge me as much money as possible.

Email to customer support and even the Jeff team basically tell me to shut up and go pound some dirt. This is extortion!

I am literally overdrafted on my bank accounts because amazon keeps delaying my products and charging me for it’s own incompetence! But hey, at least they are pro-active enough to lock me out of 2+ weeks worth of withdrawals (loan payment counted against my available funds) ahead of time to cover the monthly loan balance repayment. Who needs to eat, pay their employees? Apparently not a small business owner trying to survive a freaking recession!


#18

We are VERY hopeful that Amazon considers time delays for inventory since March for sellers. We did a mass removal of an air travel product due to pandemic…so far no removal costs. I truly hope they consider that!


#19

How do you “clean up” used books (for example). Just recycle or landfill? I’m sure glad I’m FBM not FBA because books & authors (most of em long gone) are my friends. It’s not just about the money. Maybe you ship books to libraries in impoverished areas?


#20

TDUSA…

I think I would expand your eCommerce marketplaces , extend handling time as long as they allow on the other venues… And start doing some multi-channel fulfillment… that might stop some of the bleeding, give you some income, a
possibly help your IPI scores…

And of course this is all a big p i a, what are you going to do…


#21

We are dealing with the same issues… our story exactly. very frustrating. I had 100’s of cases and discussions with Amazon’s robotic support! no help… the internal teams are not accessible and they dont get or dont want to get or solve our issues!
The IPI is money making tool for reducing storage, calculating overage and charging! cant ship product, loosing sales and on top of it the availability is considered in performance!
How can i make availability with storage restrictions, quantity restrictions, transportation and receiving delays and long lead times?