Make the most of Prime One-Day shipping! We’re reducing the cost to store popular products in our fulfillment centers to help you provide more One-Day shipping inventory and increase your sales. Starting in June 2019, for a limited time, earn lower monthly inventory storage fees on your eligible products when you maintain our suggested inventory levels. To find out which products qualify for discounts of up to 75%, visit Target inventory monthly storage fee promotion.
Are fees going to go up?
When Amazon said they are making a $800M investment in 1-day shipping for Prime customers in Q2 2019, I didn’t anticipate this. This is exciting for my business! We’re interested to see if it increases sales.
So if we meet these requirements our items will show as 1 day prime?
dont see anything about FBA fees going up. Would think the FBA fulfillment fee is the same.
The storage costs goes way down, so this is definitely worth it.
You cannot create a program to manage this.
There are natural ups and downs with sales.
In the toy business, certain items sell much better during Christmas season.
This will certainly not be considered in the programming
This promotion is good for items that sell in large quantities and that storage fees have affect on profitability, which is perfectly fine.
In the FAQ section, amazon linked this promotion to 1 day shipping , and here is my concern.
When we ship large quantities to FBA, our shipments are split between few FC or distribution centers.
Than, amazon transfers the items to other FC.
If amazon wants to increase the number of 1 day shipping, the items have to be in many FC, at least in big metropolitan areas, and as close as possible to the customers.
This maybe a logistic nightmare for amazon to assume where the demand will come from.
In fact, if not calculated properly, our item will be more time in transfer, and may miss the 1 day shipping.
You need to re-read Amazon’s post.
There’s no relationship between the two. Yes, I know they mentioned 1-day Prime…but you convoluted it.
Interesting point that raises the question of how warehouse transfer status will affect this:
“To qualify for the discount, maintain the target inventory levels on your eligible products for at least 21 days of the month.”
If transferring inventory is not available for sale, will it count toward the 21 day target inventory level window?
Also, it appears this will only apply to standard-size items:
“Products are eligible when 60 or more units are sold for a standard-size FNSKU in the month the discount is earned.”
Items in transfer are available for sale, the question is how long it will take for delivery.
As I see it for now, I’ll continue as usuall.
This is an unbelievable promo and should save us thousands a month AND 1 day prime will lead to an increase in sales.
Thank you for the notification.
I went and glanced over the help topic and honestly it looked complicated.
True I only glanced at it and didn’t deep dive read it. But the reason I didn’t deep dive read it is because it looked complicated.
Can’t you put out a video on this? Like you have videos for selling Amazon Advertising?
I think seeing it in a video first, might encourage me to go back and read the Help Topic in depth.
I really don’t pay very much for storage fees now because almost all my inventory turns pretty well and my products do not have a high volume or great weight. So if I don’t pay a lot now, what is the encouragement to change? Maybe if I saw this in a video I would see something that gave me pause to consider this new program.
I hope my feedback is helpful to you.
Here is my summary on the subject:
Until Amazon Just Collects and Remits Sales Tax for All US States and Providence then Noone shoudl use FBA.
FBA has become a Audit Magnet for the States and Amazon is only helping the confusion.
I have never done FBA but I thought storage fees are only incurred for items sitting for 6 months? When do storage fees start?
To qualify does the inventory have to be in fulfillable status? Or is the inventory in FC Processing and FC Transfer counted as well?
The promotion is for “monthly inventory storage fees”.
FBA long-term storage fees are additional fees:
On the 15th of each month, Fulfillment by Amazon (FBA) conducts an inventory cleanup. On these dates, inventory that has been in US fulfillment centers for more than 365 days incurs a long-term storage fee (LTSF) of $6.90 per cubic foot or a $0.15 per-unit long-term storage fee, whichever is greater.
As announced in the 2019 US FBA fee changes summary, we are eliminating long-term storage fees for units that have been in a fulfillment center for 181 to 365 days. The last long-term storage fee charge for inventory in a fulfillment center for 181 to 365 days was January 15, 2019. This change is not retroactive. Any previous 181 to 365 day charges will not be reimbursed.
As noted up-thread:
FFS_LLC - I was wondering the same thing on this, I usually try to keep 60 days of inventory on my best selling items so usually 20-30 days are in transit/processing at any given time.
If we go over there limit will we lose the discount on everything, or just on the extra items? I’d hate to send one extra box in and lost out on the promo, but I’d also rather have a little extra in stock rather than be a little short.