Storage utilisation effect on May 1, 2023
I am trying to get my head around the new storage utilisation email that I just received.
It used to be over 30 days you start paying storage fees, I understand this.
In todays email it says (UK) Standard-size: 2.99 weeks
This is 21 days, or am I missing something?
I tend to keep 56 days in stock
0 replies
Seller_7VbclcPFFRTnc
these are extra fees - based on storage / sales ratio
as long as you are under 26 weeks (which you are ) , you won’t have to pay the surcharge which is 50p per cubic foot
Seller_BS5lg2keRs2QO
I haven’t seen the email so don’t have the context for the 2.99 weeks, but as per above the new fee is intended to hit sellers who are storing an excess of stock compared to their sales. It’s another push to get sellers to send smaller and more frequent shipments.
Seller_YhVpuyNJnTnUw
Hello,
The storage utilisation surcharge that was announced in January will go into effect on May 1, 2023. The surcharge will be based on the storage utilisation ratio and will apply only if you have a ratio that is above 26 weeks and you meet the surcharge criteria.
The storage utilisation ratio is calculated from your average daily volume stored divided by the average daily shipped volume over the past 13 weeks.
We’ll apply a single surcharge for inventory that’s stored in Germany, France, Spain, and Italy, and a separate surcharge for inventory that’s stored in the UK. If you sell in the UK and other European countries, you’ll be charged no more than two different storage utilisation surcharges.
Ahead of the surcharge launch, we’re providing your storage utilisation ratio estimates for February 28:
(UK) Standard-size: 2.99 weeks
(UK) Oversize: Not applicable
(EU) Standard-size: Not applicable
(EU) Oversize: Not applicable
If any of your storage utilisation ratios are above 26 weeks on May 31, 2023, you’ll incur the surcharge in June.
Seller_3di7P6gi1JyqG
You should all be using EoQ really anyway
