In an effort to help improve inventory management and increase the speed of delivery for customers, Amazon will be changing their US FBA storage fees and policies throughout the year. Below, we’ve outlined everything seller’s need to know to plan ahead for these upcoming changes.
FBA Storage Fees Increase
- Beginning April 1, monthly inventory storage fees for standard and oversize items will increase by $0.05 per cubic foot. These changes will be reflected on your bill starting in May.
- Beginning September 15, long-term storage fees will be assessed on a monthly basis instead of twice a year. These fees will be charged per cubic foot on the 15th of every month for any inventory left in fulfillment centers for more than 6 months.
- Beginning August 15, a minimum long-term storage fee of $0.50 per unit per month will be charged for standard and oversize items held in fulfillment centers for 365+ days. Small and lightweight items will be subject to a minimum fee of $0.25 per unit. You will not be charged both a long-term storage fee and minimum long-term storage fee for items in inventory over 12 months, but instead will be charged once for the greater of the two fees.
The Inventory Performance Index
Beginning July 1, Amazon will start using the Inventory Performance Index to assess and manage the inventory of sellers with a Professional selling plan. Scores will be assigned based on your ongoing inventory management and updated each week. Six weeks prior to the start of each quarter, your score will be evaluated and used to establish your storage limits.
Sellers with a score of 350 or more will be allowed unlimited storage for standard size and oversize items. Those with a score below 350 will be notified of their potential storage limits. If at the end of the quarter your score is still under 350, your storage limit will roll into the next quarter.
If you hit your storage limit, Amazon will not access any new shipments until your inventory level drops. If you exceed your monthly storage limit, Amazon will charge an Inventory Storage Overage fee on the excess inventory, in addition to any monthly or long-term fees you’re already paying. These overage fees will be charged at $10.00 per cubic foot per month based on the daily average volume of your excess inventory for the month.
FBA Small and Lightweight Fulfillment Fee Increases
In response to rising fulfillment, transportation and customer service costs, additional changes will be made to Small and Lightweight fulfillment fees beginning April 2.
- Fulfillment fees will now be based on your item’s sale price, not its categorization as a flat or parcel. Handling fees of $0.80 will be applied to items of $5.00 or less and $1.00 fees to those over $5.00.
- Pick & Pack fees will be charged at $0.75 per unit.
- Weight handling fees will be charged at $0.11 per ounce.
- Removal fees will be charged at $0.25 a unit – a 50% decrease from the current charge.
For more information about Amazon FBA storage fees and policy changes, contact our team at Awesome Dynamic or learn more at Seller Central.