Monday, July 18, 2016

Long Term Storage Fees Are Coming in August!

Every 6 months, on February 15th and August 15th Amazon assesses a long term storage fee for any units in their fulfillment center for 6 months or longer on those dates.  The same fee applies if the item has been there for 6 months or 9 months, but the fee is even steeper if the item has been there 1 year or longer on those days.

You can learn more about Long Term Storage Fees at this link (referral link).

The next Fulfillment by Amazon inventory cleanup is scheduled for August 15, 2016. On that day, units that have been in an Amazon fulfillment center in the U.S. for six to 12 months will be assessed a Long-Term Storage Fee of $11.25 per cubic foot. Units that have been in an Amazon fulfillment center for more than 12 months will be assessed a Long-Term Storage Fee of $22.50 per cubic foot.
If you file a Removal Order before August 15, 2016, to have this inventory returned to you, you will be unable to send in additional units of these ASINs until January 1, 2017. You can continue to sell through your remaining inventory of these ASINs. You are responsible for paying appropriate fees for the return of these units

This is  the first time I will be likely be assessed a long term storage fee.

You can check which of your units will be assessed LTSFs by clicking on Inventory> Inventory Planning>Inventory Age

You can then sort your inventory based on how long it has been there or based on your LTSFs.  It's more useful to sort based on LTSFs since it will show you items that will be assessed storage fees on August 15th when it will be 6 months then even though it hasn't quite been 6 months yet.

I was a little shocked at how severe the fees are when you look at them practically for large items.  Don't get me wrong, the fees are laid out and I'm not upset at Amazon but my strategy will have to change a little bit.

You can see that I have one item that I'm going to pay more than $650 in LTSFs.  That's not good.  For smaller items the fees can be negligible.

Check it out, you may want to lower your prices or create removal orders to lower your fees just be aware that if you create a removal order you won't be able to send them back in under the same ASIN until January 1st which is obviously missing the quarter 4 price bump.  You may also decide that some items it might be worth it to keep and pay fees but please be aware of these fees and act accordingly.