Amazon is turning big changes in FBA fees by converting the long-term storage fees it receives twice a year into a monthly fee. In addition, Amazon, which is preparing for a small increase in the monthly inventory fee, brings limitations to the storage service for sellers with an Inventory Performance Index below 350.
1. Monthly inventory storage fees
As of April 1, 2018, Amazon has increased monthly inventory storage fees by $ 28.3 per press for standard and oversized products. This application, which started in April, will be reflected in the May 2018 fees.
2. Long-term storage fees
As of September 15, 2018, Amazon will reorganize long-term storage fees, and the evaluation dates made twice a year will be on a monthly basis.
3. Lowest long-term storage fees
Amazon will bring a monthly fee of at least $ 0.50 per product unit for products that remain 365 days or more in their warehouse on August 15, 2018.
4. Inventory performance Index Score
Inventory Performance Index is considered the first step in Amazon’s limitation on inventory performance.
Starting with the first day of June, Amazon will place restrictions on warehouse services for sellers with an Inventory Performance Index below 350. (This score is updated weekly according to ongoing inventory method.)
Sellers with an index score of 350 or more will have unlimited storage for standard and oversized products. However, there will be no change in monthly and long-term storage fees for these sellers, and these fees will continue to apply.
Amazon provides advice on when and what to restock. While having enough stocks with the right ASIN increases the vendor’s Inventory Performance Index, it does not impose sanctions on non-resume or non-renewable products.
Amazon’s Excess Inventory Management tool provides vendors with data to help them identify lists with excess inventory and get a better return on their investments. While the tool highlights the factors that limit sales, it gives advice on steps to speed up sales and the recommended selling price. Excess inventory management also gives advice on issues such as more efficient keywords, editing lists and lowering costs by removing products.
Inventory anchored in warehouse
Such inventories are products that are not linked to any active listings in Amazon’s preparation centers. So, although the products are on the shelves in the warehouses, they cannot be sold because they are not linked to any active list on Amazon’s website.
You can check out Seller Central (Seller Panel) or contact Amazon directly for more information about the changes mentioned above.
Changes through the eyes of an FBA vendor
We asked these changes to Stephen Smotherman, who is selling full time in FBA. We will include his views below.
According to Stephen, Amazon wants sellers to send their better and faster-selling products to FBA warehouses and sees this as a positive development: “Amazon wants me to manage my inventory better. This is also a step in direct proportion to the goal I have for my job. Amazon also wants me to price my inventory better. One way I can sell my inventory faster is to price my products better and more competitive using the re-pricing program. ”
Stephen said he thinks Amazon will ask sellers to remove old inventories regularly, not just twice a year, will make positive contributions to the sellers’ inventory and sales over the long term. Noting that this year is a transition period, Stephen underlined that problems may increase with changes, but sales will grow if these changes are kept.
Saying that the changes will not take place today or tomorrow, the FBA seller said that Amazon has given the sellers enough time to plan according to the new regulations and to solve their problems with the changes.