FBA Capacity Limits and Fees
We recently saw a significant decline in our capacity limit for November, but it doubles again in December. Our November limit is the same as we have in October and we're at threshold due to the slower sales period this month, so we can't build inventory in November for important December sales and will need to cut advertising for fear of stocking out before we can replenish. We're considering a request for more capacity but haven't done it before and the fee structure looks confusing. I've used the calculator to determine the reserve fee, but am I correct in the understanding that we won't be charged for the additional space if we meet our projected targeted sales? Any details a seller or mod can provide on how the fees work is most appreciated.
2 replies
Seller_pRaY92SLqwtG8
Hey, have you been able to reserve additional space? What was the dollar amount for each cubic feet?
TaylorR_Amazon
Hello @Seller_j4cBNs8gstrke, great question! When you request additional capacity, you will set the maximum reservation fee that you’re willing to pay for the extra space. No upfront payment is required and if your request is granted, you’ll earn a $0.15 performance credit for every dollar of sales that you generate using additional capacity. That will give you the opportunity to offset the reservation fee, if you sell the inventory.
Monthly storage fees consist of the following fee components:
- Base monthly storage fee, which is determined by product size and time of year.
- Storage utilization surcharge, which is in addition to the base monthly storage fee, and varies based on product size and storage utilization ratio. The storage utilization ratio is the ratio of your average daily inventory volume stored divided by the average daily shipped volume during the past 13 weeks.
Let me know if this answers your question.
