October Storage Fees - OUCH!


#1

4k for October storage fees.

OUCH!!!


#2

I’ve tried my best in sending in inventory later, but there is only so much we can handle ourselves. We have been sending in inventory every day for the last month and will continue to do so throughout November. Our warehouse is only so large and so is our manpower. I was expecting more like 3k for October. Now I am concerned about November charges, as we definitely have more inventory in stock in November. December should be lower.


#3

Yes, I have thought about that. That works for manpower but not for physical warehouse space. Our products take up a decent amount of space, and our warehouse is not that large.


#4

Indeed. We are postponing sending the majority of our holiday merchandise until January. What’s the saying about blood from a turnip?


#5

Yes, I can feel your pain. It was not a surprise. I don’t see mine yet, but expect them to be 4 times the usual amount.

Hopefully the savings for the FBA fees (about 4%) will offset this amount - that is the intent (for items that get sold).

Dave


#6

.64 to 2.35 is a 265% increase, not 365%. You were already paying that first 100%.


#7

Yep. The standard $0.64 per cubic foot goes to $2.35 per cubic foot in October - December – a 365% increase.

Since they did this, we postpone sending our holiday units to Amazon until the start of November. I am not sure this benefits Amazon as it creates a spike in inbound FBA shipments instead of spreading it over a longer period of time.


#8

A method we employed last month was generating shipments but not sending them as we too have limited manpower. The shipping labels remain active so waiting a few weeks to ship is no problem. Maybe this will work for you, maybe not but wanted to mention it.


#9

The problem is, during those months it takes far longer to get shipments checked in and on the shelves. What might have taken several days in June can take several weeks in early November. So you’re damned if you do, damned if you don’t. Pay more in fees and keep inventory in stock, or keep fees lower but risk running out of stock and losing sales


#10

As a small family business with generally less than 3500 items in inventory, just another reason for us to continue being Seller Fulfilled.

Year after year, I always did the math, and FBA was never a benefit money wise. And now with this increase, it reiterates our decision.


#11

Can you tell me where do you find storage fees total ?

Thanks


#12

Reports > Payments > Transaction View > Service Fees


#13

Anyone else have numbers to post?


#14

I removed my items from FBA last year when they announced this increase in 4th quarter storage fees and have now found that since I am 100% FBM that my bottom line is greatly increased.
Before doing this I was about 85% FBA.

You are correct in that my sales fell by more than half but my margin has increased enough to make up for most of this loss in sales.
Of course this also means that I need more storage space and I have to do a little more work myself but I personally think it is worth it.


#15

I haven’t tried FBA, but I’m confused by your description. If you are doing more work for less money, how is that worthwhile for you?


#16

Mine was 40,000 $ last December so I pulled everything but bare mins for the Amazon Q4 2017


#17

20K for me…yup. Not sure Amazon is sustainable. Every year they take more and more…


#18

Where did I say less money?
I believe I said that I now have better margins on my sales now.

I don’t have as many sales but the increase in margins makes up for that.


#19

We have been using a 3rd party warehouse in Nashville to store & ship products to the FC. The storage cost is approx. 25% of what Amz would charge for storage. We ship on a weekly basis after a review of the on-hand numbers.


#20

To all long time sellers (and new ones): you need to realize Amazon tries to get rid of sellers by implementing policies and fees increases every year, sometimes every 6 months. We started selling here back in 2007, and it gets harder and harder to make ANY money here.
We are being used as Guinea Pigs and Lab Rats, so Amazon can benefit from our products.

Many cases, for instance, a product we sell is out of the sudden sold by Amazon with a price well below cost, just to get rid of us. The new policies makes easier for a seller to be suspended, and buyers to keep scamming us, you have to agree on that!

Soon, Amazon will cease third party sellers, it will take a while, but check on your calendar.