Storage Fees €12000


#1

Amazon sent me an email today telling me that I am going to be charged of Storage Fees €12000 for 1000 excess items

When we send items to them we only ever use there “Sku’s to stock today widget”

Am I missing something here? should I just get everything the hell out of there?

I spent 50 mins onto customer service and could not get a straight answer


#2

I would imagine that they have been there for over 12 months.
So yes, I’d get them out as quickly as possible to avoid those fees.

You need to check your inventory age report and find out exactly what it is, that’s causing the issue.


#3

Without knowing greater information, it’s very hard to comment, but it could well be right. You’re as well downloading the storage fee report in seller central that should be able to confirm the position.

For future reference, we tend to ignore the sku to stock today widget as we believe it to be wildly inaccurate. We simply set our required weeks of cover and replenish on that basis. We also monitor sell through so as not to incur excessive storage fees.


#4

If you had not said it I would not have believed any FBA seller would use Amazon replenishment widget,its useless.


#5

Oh I don’t know, I find it a little useful myself.
Though the quantities it tends to give you are nearly always a lot more than you need to send.


#6

Make sure in your FBA Settings that you have Enabled “Automated long-term storage removals:” and this will ensure that Amazon create an automated removal before you get charged these LTSF.

Here is a reply from support directly regarding this situation:

"By enabling the service we will not charge any future LTSF to your account. We are not supposed to cancel Automated Long-Term Storage Removals as they are intended to remove aged inventory. Regular fees for removal orders will apply for this type of removal orders.

If you have enabled automated long-term storage removals, removal orders will be created one to two weeks after the inventory clean-up date."

My thought… this is a strategy to get you to panic a little and either pump up your advertising or discount your products. Although do not get me wrong, make sure you also do not get hit by those LTSF…


#7

Thank you I have now enabled this. It will save the panic for the next LTSF. I also finally got through to a helpful customer service rep who sent me a list of everything I needed to remove in order to prevent the fees


#8

How do you figure out your qty’s to send every order? I actually thought this widget was quite useful overall, it looks like it was just a bad batch of ASIN which we had forgotten about that were causing the issue


#9

Thats retail experience. How many have you sold in the past x weeks, and why - sold more/fewer because other people out of stock, weather, paydays, promotions, public holidays, advertising etc.

Taking that info and extrapolating to the coming weeks but again factoring coming events mentioned above plus factor of how long the lead time is from recognising a shortage to being able to get stock back “on the shelf” at Amazon.

You need crystal balls…or balls of crystal whichever way you look at it


#10

I know how my products sell so I am the one to decide whats sent in not Amazon.I am fortunate in sending every shipment to the same FC & they are almost always received within 24hrs of delivery.


#11

Use the weeks cover tool. Inititally, we send in small amounts and set the weeks cover at 3/4, dependent on the time of the year. If your goods are seasonal, then tweak the weeks cover accordingly. Obviously higher in season and lowe when out of season.

As for forecasting our purchasing plans, I use the time old method of S.W.A.G.


#12

Forgive my ignorance here, but where do I find the weeks cover tool?


#13

Manage FBA Inventory
Tick any given product, or selection
Select set replenishment alert
And you can do it in there.


#14

To give you a good idea of the difference between weeks cover tool and skus to stock today widget, we just noticed the following as a good example.

We have a very good, fast selling sku of which we have set the weeks cover to three. Each week, we may send in a few hundred, according to the weeks cover and historical sales. This week, with Christmas approaching, we opted to send another shipment of 200 pieces in, the sku to stock today widget was telling us to send in 1200 pieces. Goods have now been booked in and the replenishment alert widget is not sounding the low stock alert.

So, had we followed the sku to stock today widget we would have sent in 1,000 pieces more than we needed to. For sure, it would have meant that we had stock sitting in the FC ready for an upturn in sales, but if that upturn never arrives, then we have 1,000 pieces accruing storage charges.


#15

Crikey. Best of luck. Yes that widget definitely overestimates things!


#16

Thank you so much. I never knew this existed. You have been a massive help, I really appreciate it.