Amazon FBA Storage Fees Explained: How to Minimize Your Costs | Learn from 417k+ Seller Reviews

Summary

In a recent video, Justin Bogs, co-founder of Marketplace Valet, discusses how to effectively manage Amazon FBA storage fees. He highlights that these fees are based on the volume of inventory stored and vary throughout the year, with higher charges during the holiday season. To minimize costs, sellers should monitor inventory levels, utilize Amazon's inventory reports to identify slow-moving products, remove unsellable items, and take advantage of promotional discounts. By actively managing their inventory and utilizing Amazon's resources, sellers can significantly reduce their storage expenses.

Takeaways

• 📦 Amazon FBA storage fees are based on the volume of inventory stored in fulfillment centers.
• 📅 Storage fees are lower from January to September and increase significantly from October to December.
• 📊 Regularly monitoring inventory levels is crucial to avoid overstocking and unnecessary fees.
• 📈 Analyzing sales trends can help sellers adjust their orders to manage inventory effectively.
• 📑 Amazon provides inventory age and excess inventory reports to identify slow-moving products.
• 🚫 Removing unsellable or slow-moving inventory can reduce storage costs.
• 🔄 Sellers can create removal orders to return or dispose of unsellable inventory.
• 🎉 Amazon occasionally offers promotions for discounts or free storage on certain products.
• 🔍 Actively managing inventory and utilizing reports is essential for minimizing storage fees.
• 💡 Staying informed about FBA storage fees and strategies can help maintain profitability.

Q & A

What are Amazon FBA storage fees?

Amazon FBA storage fees are charges based on the volume of inventory stored in Amazon's fulfillment centers, calculated monthly.

How does Amazon calculate storage fees?

Storage fees are calculated based on the space your products occupy in Amazon's warehouses.

When are storage fees typically lower?

Storage fees are lower from January to September.

Why do storage fees increase during the holiday season?

Storage fees increase significantly from October to December due to higher demand and inventory levels during the holiday shopping season.

What strategies can sellers use to minimize storage fees?

Sellers can minimize storage fees by managing inventory levels carefully, regularly monitoring stock, and removing unsellable or slow-moving inventory.

What tools does Amazon provide to help sellers manage inventory?

Amazon provides inventory age and excess inventory reports in Seller Central to help sellers identify slow-moving products.

How can sellers remove unsellable inventory from Amazon's warehouses?

Sellers can create a removal order to return unsellable inventory to themselves or have Amazon dispose of it.

What are FBA storage fee promotions?

FBA storage fee promotions are discounts or free storage options offered by Amazon for certain products or during specific periods.

How can monitoring sales trends help in managing inventory?

Analyzing sales trends helps sellers adjust their orders and avoid overstocking, which can lead to higher storage fees.

Where can sellers find more information about managing their Amazon business?

Sellers can visit MarketplaceValet.com for more insights and helpful content related to Amazon selling.