FBA Storage

Stocking products via FBA, things that sellers should know this holiday season

Sellers from across the globe would like to ensure they have sufficient stock in hand so they don’t miss on any order during the upcoming holiday season. However, at the same time, it is also important for sellers to avoid excess storage of products that may not sell by end of 2016.

Amazon.com is enforcing seasonal changes to ensure its fulfiment centers are being used productively. The giant marketplace has announced the increase in storage fees in the Month of November and December 2016, to avoid wastage of space by sellers whose products don’t get sold during the busiest selling days of the year.

How Amazon is helping sellers make the best use of inventory this holiday season 2016?

1- Storage fee

Many sellers may have already got the cost-benefit of stocking their products in the month of October 2016, however, for those who have yet to stock their products for the upcoming Holiday season should expect a hike on storage fees effective from November 2016.

Standard size: $2.25 per cubic foot

Oversize: $1.15 per cubic foot

What will be its impact on sellers?

The increase in storage fees can be something to worry about especially when you to want to make the best out of the holiday Season, however, not being able to stock products in Amazon’s fulfilment centers due to no storage capacity is even worse.

Therefore, in order to reduce overstocking scenarios, Amazon has taken this step to allowing seasonal sellers make their best optimization of inventory during Holiday season.  

2- Reduce weight handling fee

With the increase in storage fees, Amazon has become liberal among sellers in their shipping handling fees.

Order Handling and Pick & Pack per item will be the same for both standard and oversize products, while weight handling based on outbound shipping weights.

For Standard size:

Small standard size 1lb or less: Reduced from $0.50 to $0.47

Large standard size 1lb or less: Media $0.85 to $0.71, Non-media $0.96 to $0.82

Large standard size 1 lb to 2 lb: Media $1.24 to $0.95, Non-media $1.95 to $1.66

Large standard-size over 2lb: Media $1.24+$0.41/lb above the first 2 lb to $0.95+$0.37/lb, Non media $1.95+$0.39/lb above the first 2 lb to $1.66+$0.35/lb

For Oversize:

Small oversize: $2.06+$0.39/lb above the first 2 lb to $1.85+$0.35/lb

Medium oversize: $2.37+$0.39/lb above the first 2 lb to $2.10+$0.35/lb

Large oversize: $63.98+$0.80/lb above the first 90 lb to $56.57+$0.76/lb

Special oversize: $124.58+$0.92/lb above the first 90 lb to $0.95+$0.88/lb

What will be its impact on sellers?

Considering the effect of storage fees on FBA sellers, Amazon is reducing their burden in spending on their shipping handling fees for every item fulfilled by Amazon. This way, sellers will not have to think twice in processing multiple orders, as with then increase in a number of shipments by Amazon can help reduce overall shipping handling charges during the most-selling days of the year.  

3- Promotional box content information

Another effective step by Amazon is to ensure accurate and quick shipments fulfilled by Amazon. This means, making box content information a compulsion for each box sent to Amazon fulfilment center will ensure seller’s that their products are stored safely and can be accessed immediately by Amazon staff for their order shipments.

For sellers whose shipping company does not have the facility to provide the box content, Amazon offers tools that can make it easy to ensure information is available for all shipments.

To know more about Amazon Box Content Information, click here.

Wrapping up

Considering the upcoming holiday season 2016, Amazon has surely taken measures to accelerate the expansion of Amazon Fulfilment Centers, however, announcing a change in the storage and handling fees can help potential sellers win the limelight and perform the best during those busy days.

Savio Fernandes

Savio Fernandes

Savio Fernandes is a writer who influences. Writing for over three years at Orderhive, he is currently focused in offering eCommerce and retail solutions for start-ups and medium business owners.

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