Amazon's New Storage Fees in 2019 - Sellics

Amazon’s New Storage Fees in 2019

Amazon’s New Storage Fees in 2019
By Robin Hanna in Amazon Updates Posted

Amazon is adjusting its FBA storage fees from 1 August 2019.

The change affects long-term storage fees in particular. Long-term storage fees will be no longer be charged for inventory held between 181 and 365 days in a fulfillment center in the United Kingdom, Germany, France, Italy, or Spain.

The long-term storage fee retakes effect after 365 days of storage — but then monthly instead of half-yearly as before.

So far, long-term storage fees were due on two fixed dates per year: stock assessments took place on 15 February and 15 August.

As of 1 August 2019, the stock is checked on a monthly basis — To aid this transition, the long-term storage fee on 15 February 2019 is waived for articles aged 181-365 days at that time.

Since a long-term storage fee is not charged on this date, automated storage-removals do not apply either. Sellers who have created automatic removal orders for items aged 181 to 365 days before the long-term storage fee assessment date should check their settings.

For items stored longer than 365 days, Amazon will charge €170 per cubic meter (£4.30 per cubic foot) per month, with a minimum of €/£ 0.10 per unit, whichever is higher.

In addition, from 1 August 2019 Amazon will reduce the storage fees for oversized items, i.e. 45 cm x 34 cm x 26 cm upwards.

Storage fees for standard sizes remain unchanged, except for clothing and shoes.

From 1 April 2019, the monthly storage fee for clothes and shoes including accessories (e.g. handbags, wallets, belts, sunglasses) will be reduced by 40% — a monthly saving of around €10-15 per cubic meter (£0.25-35 per cubic foot).

Officially, the reduction is part of the “continued investment in supply chain innovations”. This change could, in fact, be financial relief for many sellers.

It’s also reasonable to assume that sellers will order fewer storage-removals, thus facilitating the overall administrative effort.

Amazon also plans to announce changes to FBA shipping fees in early 2019.

What do you think of the new fees — an early Christmas gift or a nightmare before Christmas? How will the change affect your FBA business? We look forward to your comments!

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