Amazon.com have run out of room in their warehouses. to encourage merchants to change the volumes of products sold they’re going to change their pricing in the last quarter of the year to reward merchants who’s inventory sells by Christmas and discourage sellers from sending in inventory which won’t sell.
While this will obviously impact US based sellers, it will also affect all UK based sellers who use US based Fulfilment by Amazon (FBA) to distribute their Amazon.com sales. The highlights are:
Monthly inventory storage fees for October will be reduced but fees for November and December will increase. Amazon don’t want to hammer you when you send in your bulk Christmas and Black Friday stock so October storage fees will be in your favour. Beware of stock sitting around gathering dust though, you’ll pay more to store it at Amazon in the peak season.
In November and December Amazon will reduce weight handling fees for all items shipped in November and December. Amazon don’t want to hammer you for sales, so the reduced fees are designed to offset the increase in monthly storage fees.
Put simply if you don’t sell your FBA stock by Christmas (or remove if from FBA warehouses) then you’ll be paying more. If you do sell your stock (or reduce inventory levels) then you may even pay less than previously.
Amazon provided the table below as an example showing that if your inventory stayed static, their FBA fees would increase 0.65% but if the seller sold or reduced their inventory by 11% their total FBA fees would reduce by 0.32%.
Build another warehouse – lots of space in US
The two months I don’t want to remove stock, I want them to ship it out for me!
If and when it comes in here, zero stock taken out and merely higher fees to pass on to buyers.
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