Amazon is making some serious changes to the cost of Fulfillment Fees, Storage Fees, Seller Shipment Requirements, and the Zero-Fee Fulfillment. Stop stressing for now, there are some positives to a couple of the changes. We know that most, if not all, of the shipping companies are increasing their cost this year. USPS is raising rates too. This increase in cost for Amazon could be part of the reason for the increase in cost. Well, let’s get into what’s happening.
Amazon is condensing the Order Handling, Pick & Pack, and Weight Handling fees into just one charge. Do you even know where to see these charges within your Seller Central Account? They are in the Transaction details page by going to “Reports” – “Payments”.
For Media, it is all a negative and seeing an increase in Fulfillment Fees across the board.
If your products fall into the “Oversize” category, your profits will see a hit this year as well due to an increase in FBA Fulfillment Fees. Going to keep the chart basic and show just the minimum a per item fulfillment fee which includes the first 2 pounds. All the per pound over the first 2 pounds are staying the same. For Media, it is all a negative and seeing an increase in Fulfillment Fees across the board.
As many of you already know, Amazon increased the storage fees for November and December 2016. Many Amazon FBA sellers were surprised when they saw their November monthly storage fee. This time of year is hard for sellers when it comes to how much product they want sitting in a FBA warehouse. Well, more bad news for this year and your storage needs. You can also read more about FBA storage fees in our article, Amazon Storage Fees.
There isn’t much good news when it comes to Inventory Placement Services Fees. When you are shipping units to Amazon FBA, sometimes it is easy and all the units can go to one FBA warehouse, and then there are times when Amazon splits up the units and has you ship inventory to three different locations. The changes are going into effect on July 19th, 2017. Basically, instead of Amazon paying to move your products around the US to other FBA warehouses, Amazon is going to start charging you.
Pro: Amazon charged a flat rate of $0.30 + $0.10/lb above the first 2 lbs. and $1.30 + $0.20/.lb above the first 5 lbs. for when you picked the number of locations. Now, Amazon has introduced a somewhat tier pricing. So, you only pay the price mentioned above when Amazon gives you three locations and you pick 1. If you pick two out of three or one out of 2, you pay less for Inventory Placement.
Con: Amazon is claiming they will be increasing how often the ask sellers to ship inventory to multiple locations. This will add extra stress for seller that have their inventory shipped straight from their supplier to Amazon FBA.
The services that Add to Cart Consultants provides will help with your inventory replenishment needs. We provide free pick & pack of your units to be shipped into FBA. So, instead of having high inventory cost or worrying about making sure your supplier labels the boxes correctly, we provide affordable shipping from your supplier to us, better storage rate fees, and we do the leg work of getting your units to any FBA warehouse.
Robert Ross has been in the Brick & Mortar and e-Commerce industry since 2010. He has helped companies get their products into big box stores and onto numerous e-Commerce platforms. Robert and Add to Cart Consultants assist businesses with their logistics, warehousing, shipping, inventory control, and provides consulting from his 7 plus years of retail experience. Add to Cart Consultants helps businesses save money and increase their bottom line by providing excellent services at an affordable rate.
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