If the IPI score is lower than the assessment value, Amazon will not only restrict the seller’s inventory, but also charge storage overlimit fees for the excess part in addition to the monthly storage fee and long-term storage fee (if applicable).
The IPI storage overlimit fee calculation formula is as follows (taking the US market as an example):
? Estimated monthly overlimit fee = (current overlimit value x daily overlimit rate x remaining charging days in the month) + monthly overlimit fee generated so far;
? Current overlimit value – current usage – current limit;
? Daily overlimit rate = $10/number of days in the month x 100%;
? Remaining charging days in the month = number of days in the current month – current date value + 1.
Sellers can select “Inventory and Sales Report” in the “Data Report” menu, and then select “Inventory Storage Overlimit Fee” in “Payment” on the left side of the new page, select the time and download the report.
The report covers the over-limit billing time, target FBA storage center, storage usage, etc.
In addition to the above-mentioned storage over-limit fees, Amazon has a detailed charge for each product, which can be roughly divided into the following aspects.
1) Store service fee
Includes monthly store rent, LD registration fee, coupon fee, VINE review fee and advertising cost. You can download a detailed service fee report in the “Payment Report”.
2) FBA operation fee
Includes operation fees incurred when the product is damaged, lost or returned. For sellers with large-scale FBA warehousing needs, it is inevitable that the goods will be damaged or lost during the warehousing period. Amazon warehouses will calculate the losses of these products step by step and compensate the sellers. However, given the huge volume of goods entering and leaving FBA, Amazon warehouses will also make mistakes. In this case, you can download a detailed fee report in the “Date Range Report”, view the details and claim compensation from Amazon.
3) Return Processing Fee
For FBA return handling fees for specific products, such as returned goods in the clothing and footwear categories, Amazon will charge a return processing fee.
For return processing fees, you can download detailed reports in the “Return Report”.
4) FBA Inventory Fee
Amazon divides the storage fee charging standards according to the time of year and the size of the target product.
As you can see, during the shopping season, the storage fee of standard-sized goods is often higher than that of large goods. Although the size is relatively small, it takes more time to go through more complicated loading and other work during FBA storage.
The storage fee of the product is still relatively cheap compared to the FBA logistics fee, but if the product is stored in FBA for more than 180 days, the storage fee will increase accordingly. If it exceeds 1 year, Amazon will force it to be removed. From this, it can be seen that Amazon still hopes that FBA sellers will sell more goods instead of just charging storage fees. In this way, Amazon can maximize its interests, which is one of the reasons why it launched IPI.