Massive Fine received for Storage OVERAGE


#154

Saaaaay Whhhhhhuuuuuuuuttttttttt?


#155

How did you not get the picture in October with the 95 thousand dollar fee to allow it to continue into November is completely on you. I’m betting you can negotiate a lower fee with the help of a lawyer, but in the mean time you need to get your stuff out of FBA. Amazon even had a free removal right before holiday this year. You should check for policy updates weekly they come out of nowhere sometimes.


#156

Unfortunately there’s nothing to fight, it’s cut and dry. They had a ton of inventory at FCs, during this time, their IPI slipped under 400, which imposed storage limits and the subsequent overage fees.

$4,000 in storage fees… What’s your annual revenue?


#157

Unlimited doesn’t REALLY mean unlimited… it means “you haven’t sent us too much yet-- we will let you know when that happens.”

I think the issue some people here are missing is that those containers were probably strung a few days to a week apart on barges. Once you have THAT much inventory in train you can’t just turn them around. Two months is nothing for lead time manufacturing. Even for China on low margin goods.

It was still silly to send that much inventory at one time though unless your CURRENT sales volumes are supporting it. The target is 90 day supply. You need an intermediary to freight it to though. Then they can ship it LTL or even container as it sells.


#158

Amazon knows what the expenses are for a “real business”? What is your definition of a real business? I tend to see all businesses as “real”, whether they’re successful or not is a different story.

It’s also worth noting that 40K to keep the lights on is VERY different than 40K in storage costs.


#159

I’m only a small seller but I advise people that want to sell online, you have to do the math and you have to do things in the proper order. Mail order is a series of constant double and triple checks.


#160

Yeah, I tend to not buy that “deep” into things and it really stings when I find a “winner” that sells solid and fast and I can’t get inventory anymore.

But it minimizes the dead inventory too. I am starting to buy a bit deeper though, because sales volumes of even the slower stuff aren’t that bad. (and slower stuff responds to lowering prices if I have to take a small loss at 180 days)

One item I didn’t expect much from – Amazon is suggesting a 60 item replenishment and I tried to order a large order and the manufacturer sold out and isn’t making them anymore. You just never know…


#161

99% of the time I ignore this, what they suggest is way out of whack most of the time

I sold 1 item in 6 months, but the data is based on 30days, since it sold 3 days ago all of a sudden amazon suggests I order 17 of them, no way.


#162

I sent in the original case I bought and it was gone in less than a month. (part of that it was not available because of warehouse transhipping) So the number seems about right.

Found a few on a secondary market, about 4 cases more. So about 90 days supply, a little lower profit but still decent. It is not really a Christmas product, just a year around collectible.

For single items it is misleading – but given 12-20 items to form a baseline it seems pretty accurate. (assuming non-seasonals)


#163

xD


#164

They used to block your shipments, if you were near or at the storage limits. 3-4 years ago.


#165

Amazon asked us to ship a lot for an item that is selling slower relative to our other items. We resisted for two weeks, but finally shipped some more. Now we just saw that this item is marked by Amazon as overstocked. I’m starting to kick myself now. At any rate, we have to be careful with Amazon’s recommendations. It’s the about the algorithm, which may not be your best friend.


#166

HumperBumper,

I am a new seller to Amazon, and I read these forums to attain new knowledge. I wanted to thank you for your post. Of course, there is no book to learn how to do business on Amazon. It seems to be all trial and error. Watch You Tube videos, watch Seller University, go through seller central and learn all you can, etc., all day long, and hope not to make an error. We are very tiny, but hope to grow. Input from experienced sellers help us newbies so much, thank you!!


#167

So to the OP, what was the resolution or are you just stuck?


#168

Thank you Coco_s-Kloset_LLC. Yes, I think the forums can be a good source of knowledge. There are some very helpful people on here. Just bear in mind it’s wise to sift through the post. You can easily get bogged down in drama and negativity. Amazon doesn’t reveal it’s secrets overnight. It’s annoying little baby steps. But if you stick with it, it can grow over time and soon be very rewarding. Think of Amazon like the river it’s named after. Full of rocks and obstacles, but you need to be fluid like the water. Don’t try to move the rocks, just flow around them…(My Zen thought for the day)


#169

While I do like the Amazon prompting of the numbers to send, at least for us, the calculation logic seems to be a bit too elementary.


#170

Does not have any correlation to the discussion


#171

I can definitely empathize with you.

Amazon’s storage computations are intentionally unclear.

We got hit with a $4k bill back in Xmas 2017. That’s when we decided to never use FBA again.

Aside from them constantly giving your inventory away for free, you have to deal with nasty surprises like this.

Your case, even the amount is not unheard of here.


#172

Regardless of the relevance to the topic IT IS 100% CORRECT.


#173

It does. The OP just needs to think and look outside of the box. :train2: