February is Coming, Are You Ready for Clearing Your Amazon FBA Stock?
February 15 is Amazon's semiannual "inventory cleanup" date, and sellers are now beginning to take steps to avoid FBA long-term storage fees.
As of February 15, storing products for 6 – 12 months at Amazon's U.S. warehouse is subject to a long-term storage charge of $ 11.25 per square foot; products that have been stored for more than 12 months are subject to a long-term commitment of $ 22.50 per square foot.
Storage time is counted from the date of the product delivered into the stock. Amazon calculates long-term storage fee in a first-in-first-out (FIFO) way.
For example, an 11 "x 8" x 2 "toy would cost $ 1.15 long-term storage fee if it was in an Amazon warehouse for more than six months, or $ 2.29 in long-term storage for more than 12 months; An 8 "x 6" x 1 "book that was stored for more than six months results in a long-term storage fee of 31 cents, or 63 cents for long-term storage charges of more than 12 months. For sellers with thousands of slow-moving stock products, long-term storage costs can easily accumulate to hundreds of dollars – a much higher figure for retailers that have larger inventories.
So if the seller can remove the inventory before February 15 and return to the warehouse in March? The answer is – No. Amazon will charge a "Removal Order" fee and the removed product will not be reissued until July 1, 2018.
Amazon explains why it charges long-term storage costs: "Inventory backlogs or indefinite inventories limit the storage space for hot products. Long-term storage fees allow us to provide a high level of service to all sellers and provide our customers with the products they want."
For merchants, this is a way of knowing which products are not good to sell. Amazon clean inventory twice a year, FBA sellers need to think about whether they pay long-term storage costs, or pay processing fees to ask Amazon to help handle / return unsalable products.