Although Amazon FBA has many advantages, it is not suitable for all sellers. This section elaborates on the disadvantages of FBA in detail, hoping to help sellers.
1. Storage fees are required
For products shipped by FBA, Amazon will charge corresponding fees based on the size of the product. Amazon generally charges the monthly inventory storage fee for the previous month from the 7th to the 15th of each month. The fees are as follows, and the fees may change as Amazon’s policies change.
Standard size: $0.75 per cubic foot from January to September, $2.40 per cubic foot from October to December.
Large items: $0.48 per cubic foot from January to September, $1.20 per cubic foot from October to December.
2. Long-term storage fee
On the 15th of each month, Amazon Logistics will conduct an inventory inventory check. Amazon will charge a long-term storage fee (LTSF) of $6.90 per cubic foot for inventory that has been stored in the US operation center for more than 365 days, or a long-term storage fee of $0.15 per item (whichever is greater). If the seller does not remove the products in time, the seller will not only need to pay Amazon monthly storage fees, but may also have to pay LTSF (long-term storage fees) and overdue fees.
3. How to avoid long-term storage fees
For products that are about to be subject to long-term storage fees, you can remove the order. Search the ASIN code of the product in the inventory management, select the product and click “Create Removal Order”. “Discard” means to throw the product away directly, and you need to pay a certain fee to Amazon for each disposal. You can also select “Shipping Address” to transfer the product from the Amazon warehouse to a third-party overseas warehouse. If the sales of the product are good, you can re-create the shipment and ship it to the Amazon warehouse. This operation can reduce the long-term storage fee.