Countries
Read only
Trying to understand how monthly storage costs work
Hello Everyone,
I am a new seller and am trying to figure out how i should account for monthly storage costs as part of my product pricing sheet.
First off i want to know if I ship in 100 units on the 1st of January and manage to sell them all before the month ends will I incur any storage cost.
Secondly, if i am not incurring any charge then how does amazon manage for shipments coming in any other date for instance the 13th of January. Do i still have just until the end of the month or will the period start from the date of receiving at the Fulfilment center
Also, in case of multiple shipments to the same FC does the First in First Out rule apply.
I am only concerned because the items I sell have a small margin and storage costs can be a make it or break it for my profit margins.
Thanks
8 replies
Seller_ZVAz3d5lZuGid
I don't use FBA, but have you read Amazon Seller University about the fees for FBA ?
Seller_QuM1AZgzfU9x4
Seller_40ozsHlGqPuEL
Factor in the fact you may not sell 100 units in one month. Some products, no matter what you do sometimes take a whole to sell.
Others sell, like hot cakes. So do some Amazon research before buying possibly 100 of units of stock.
Good luck
Seller_CLmNsySJDC75g
i dont think the first in and first out applies as they move to diff fc centres
Seller_XwBi5OaHVBmkc
If the stock does not sell in 30 day you pay storage from the time Amazon are ready to sell it for you ,which some times is a few days but then some times its weeks and you think they have lost them? you have no control over it at tall from when it leaves you by UPS.
Seller_EkGoiphKgUnUI
Basically, everything has a storage cost and your analysis software should let you know what that is per item. Amazon charges you based on AN AVERAGE fo the units you had over the period, so if you had 100 on 1st jan, and evenly sold them for 30 days ending with zero at the end of the month exactly, your average would be 50 units over the month, and you will be charged roughly 50 units worth of storage charges. Then theres all sorts of extra charges to be aware of, far too many to mention here.
If storage charges alone will wipe out your margin, then youre not going to make enough profit to cover the MANY and I mean MANY, other issues that arrise and will lose you money.
Read the university for the many various charges relating to storage costs. You might want to read up on the returns process too, as if youve not factored that in, you better do pretty soon.
EDIT: theres no section in the university relating to fraud, but im pretty sure you wil learn all you need by typing it in as a search term on the forum...
Similar Discussions
