Amazon Storage Fees; Get Ready to Pay More in 2017
Did you survive the 4th quarter Monthly Inventory Storage Fee increase? The monthly storage fee goes up almost 400% during the Months of November and December. These are most company’s crucial months for selling and want the most inventory sitting and waiting to be bought. We, Add to Cart Consultants, know what this pain is and what it feels like to pay high storage fees. That is what got us to help the small business that doesn’t want to worry about having these fees.
How Our Services Can Help the FBA Seller:
First, Add to Cart Consultants provides free pick & pack services to clients that warehouse their products in our warehouse when items are being sent to FBA. The client is still responsible for the freight. This is great; a FREE service. We want our clients to have a ZERO storage fees every month with Amazon. So, to help our clients do this is by offering free pick and pack for their FBA shipments. We warehouse the product, you let us know how many items to send, we go in as an admin to your Amazon Seller Central Account, input the data, package up the units, label the boxes, and off it goes to Amazon FBA. We recommend a bi-weekly shipment to Amazon and we can help you with your inventory control with a simple formula.
Second, we have a lower yearly storage fee than Amazon. Our current rate is $30 per pallet size. We define a pallet size as 48”x48”x48” which breaks down the $30 to $0.47/cuft. Amazon was charging $0.54/cuft and is increasing that to $0.64/cuft. Now for October, November, December 2017, our per pallet price will go up to $2.35/cuft. For 2016, Amazon only increased the storage fee for November and December. This year (2017), they are adding in October with the increase in storage fees. What’s the big picture price difference? That’s almost $150.40/pallet per month compared to our $30/month. So, why pay more?
Third, You don’t have to send all your inventory to Amazon every time. Buy more units from your supplier to get a better rate and have them shipped to a non Amazon warehouse to inspect, label, and warehouse until the units are needed at an FBA center. Many suppliers will offer you a better per unit price if you order more. Worrying about your storage fee might have held you back from placing a large order.
Forth, Add to Cart Consultants will ship your product for you to customers that are Fulfilled by Merchant. Ever thought about getting onto another e-commerce platform but didn’t know what to do about sending your customers the order? Well, since we are warehousing the product for you, we have the ability to pick & pack the item and ship it off. We aren’t greedy when it comes to getting your orders out. The client gets charged the same amount of shipping that we do; no bump up in shipping rates for FBM.
How does Amazon calculate the Storage Fee?
First, get the dimensions of your product in inches. You will get three measurements; length, width, and height.
Second, to get a cubic foot into inches; 12”x12”x12”= 1,728”
Third, Multiple your three measurements from step 1 (LxHxW) and divide by step 2 (1,728). This gives you you’re cubic feet. An example a gizmo is 3” by 9” by 17” divided by 1,728 = .27 cu. Ft.
1st through 3rd Qtr: $0.64 x .27cu. ft x 500 units = $86.40/month
4th Qtr: $2.35 x .27 cu ft x 500 units = $317.25
Our Client’s storage fee
All Year: $0.47 x .27 cu. Ft. x 500 units = $63.45
Year Cost Difference
Amazon: ($86.40 x 9 month) + ($63.45 x 3 months) = $967.95
Add to Cart: $63.45 x 12 months = $761.40
Difference: $206.55 in SAVINGS
Now times this for how many different SKU’s you might have and the savings start to add up.
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