Thursday, March 31, 2016

Amazon Offering Free Removal of Inventory and Reversal of some Long Term Storage Fees

Recently we saw that Amazon was restricting certain items from being sent to fulfillment centers.

Now, Amazon sent out that they are offering sticks instead of carrots to declutter their centers.  You can remove any inventory for free until the end of April starting today.

The normal fees are pretty low at $0.50 a unit (includes shipping) so this isn't a huge deal.

The bigger deal is that if you were charged a long term storage fee in February 2016, they are reimbursing 66% of that fee.  Those fees are significant.  If I was charged those fee I would think about using this promotion.

It's nice to see Amazon handle this is in a manner that is very seller friendly.

As more sellers join FBA and FCs have more and more inventory, I think we will see more promotions to remove inventory and increased storage fees.  Amazon doesn't want their FCs to become storage facilities.  I get that.

The incentive is to move towards faster sales which I understand but it will mean that fewer people will sell items that have lower ranks.  Customers may suffer from higher prices on lower ranked items from lack of competition.

Either way, I think this is a step in the right direction from Amazon in the way they treat their sellers and I applaud the way they are handling it even if I am not thrilled about the outcome.

The one catch:
  • If you file a removal order for sellable inventory on or before April 30, 2016, to dispose of this inventory or have it returned to you, you will be unable to send in additional units of these ASINs until October 1, 2016. If your inventory level falls below the number of units you have sold of this ASIN in the previous four weeks, you can send this ASIN to Amazon.
This doesn't affect your ability to sell these ASINs during quarter 4 but you won't be able to send until October which is 6 months away.