With the rapid development of the e-commerce industry, more and more sellers choose to store their goods in Amazon’s warehouses in order to take advantage of its powerful logistics network and vast customer base. However, it is crucial for new stores to understand and estimate storage costs. How are storage fees for new stores calculated on Amazon? Are these fees high?
Amazon’s storage fee composition
First of all, Amazon’s storage fees are mainly composed of two parts: long-term storage fees and short-term storage fees. Long-term storage fees refer to the fees incurred after the goods are stored in Amazon warehouses for more than a certain period of time. Specifically, Amazon calculates the monthly storage fee by cubic feet and charges according to the size and weight of the goods. Different categories of goods have different rates, and generally, large and heavy goods have higher storage fees.
In addition, Amazon has also adopted the concept of quarterly sales peaks, that is, the number of goods stored in Amazon warehouses is compared between February 15 and October 14 each year with the period between October 15 and February 14. If the number of items stored in the previous quarter exceeds the limit for the next quarter, the long-term storage fee for the item will increase.
In addition to long-term storage fees, Amazon also charges short-term storage fees, which are fees for items stored during a specific period of time. This period is usually during Amazon’s peak sales season, such as the Christmas season. The purpose of short-term storage fees is to encourage sellers to deal with inventory in a timely manner and avoid inventory backlogs. Therefore, short-term storage fees will be relatively high during peak sales seasons.
Rational inventory planning is key
In general, Amazon’s new store storage fees have certain costs, but both long-term and short-term storage fees are calculated based on the size, weight and storage time of the goods. Different categories of goods have different rates, and storage fees may increase during peak sales seasons. For new stores, reasonable inventory planning, avoiding excessive backlogs, and timely adjusting inventory levels are effective strategies to reduce storage costs. The most important thing is to have a clear understanding of your product demand and sales plan, and make reasonable estimates and management based on actual conditions. I hope the above information can help you better understand Amazon’s new store storage fees.