Avoiding Amazon’s Long Term Storage FBA Fees

By on Jan 20, 2016 in fba, newsletter archive |

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Online Creativity Newsletter
…helping grow your business outside the box…
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Hello!

As we get closer to February, one question that comes up frequently is…
“How Can I Avoid Long Term Storage Fees?”

Here is the deal – On February 15 and August 15 of every year Amazon cleans up their inventory by assessing an upfront, semi-annual long term storage fee of up to $22.50 per cubic foot. This is a big chunk of change! (The fee is $11.25/cubic foot if the inventory has been in Amazon’s fulfillment center for 6-12 months and $22.50/cubic foot for over 12 months)
[Learn more about Amazon’s fee schedule here.]

So – How can you avoid these long term storage fees?

  1. Lower your price and sell off your inventory quickly at a reduced ROI.
  2. Use multi-channel fulfillment and sell your inventory from FBA to other platforms like eBay.
  3. Remove your inventory.

Amazon only charges $.50 to remove an item (or $.15 to dispose of it) – compared to that hefty $22.50/cubic foot – it’s almost a no brainer.

But, it may not be as simple as it sounds.

What do you do with all that inventory? If you have hundreds or thousands – or even 50 items coming back to you… What are you going to do with it?

You can donate it.
Sell it on craigslist.
Sell it on eBay.
Hold onto it and send it back to Amazon in a couple months.

Here is another option.

What if you could offer your inventory to a group of sellers eager to buy and break even or still make a return?

Obviously – it depends on the inventory you have, your purchase price, etc… But, selling to a group of sellers may be a good fit for you!

Last year John Bullard, Ryan Reger and I created an EmpowerU Co-Op to provide a resource for sellers to share in the cost of inventory. It is a group of 100 sellers who share offers for small group buys… and it’s a perfect solution for selling off some of your long term storage FBA inventory!

Through THIS Friday (the 22nd), we have opened up a new co-op group and cut the price to $97 (from $297)!

There are so many benefits and creative ways to use this group… go here and watch the video Ryan put together to learn more.

Let me know if you have any questions –
Jenni Hunt

PS. Thanks for all the feedback on the flash sales! I’m planning to make this a regular thing. Usually once a month – I’ll give you the details soon so you know when it’s coming.