Amazon's peak season storage fees are doubled! Balance becomes negative...

Amazon's peak season storage fees are doubled! Balance becomes negative...


Black Friday and Cyber ​​Monday are coming, and everyone is looking forward to a surge in orders, but the accompanying "peak season storage fees" have caused many sellers to complain.



Triple fees hit, sellers call it "balance is in the red"


From October to December every year, Amazon’s storage fees are directly increased by three times!


If you compare, you will find that the charge for standard-sized goods is usually $0.75 per cubic foot, but from October to December, it rises to $2.4.

The price of large items also increased from $0.48 to $1.2. Once the storage fee was deducted, many sellers found that their balances were instantly depleted, and some even owed money to Amazon!

Some sellers said, "Orders haven't increased much, but storage fees have tripled! Sales in the peak season, orders in the off-season, plus high storage fees, are really unbearable.

"Some sellers even said, "This month's storage fee is thousands or even tens of thousands of dollars more than expected. The store balance was cleared overnight, and I was completely devastated."

New and old stores are all suffering from negative balance


In addition to new stores, many old sellers were also affected by the surge in storage fees.

Especially for sellers with large inventories, Amazon's storage fees have become a fatal blow.

Some sellers bluntly stated that there is now a serious inventory backlog, but sales have not increased. The increase in storage fees will only make the already thin profits even more unbearable.

The high storage fees during the peak season and the fact that order volumes did not grow as expected have left many new and old sellers feeling the chill after a round of deductions from the platform.


How should sellers deal with high storage fees?


Amazon’s peak season storage fee cycle has not yet ended. In order to avoid further losses, sellers need to act quickly to manage and optimize redundant inventory.
You can try this four-step "inventory combo":

① Expand sales sites: Make inventory products available online at more sites to increase sales opportunities;

② Promotional clearance: Appropriate price reduction for unsalable products;

③ Adjust stocking strategy: plan more reasonable stocking quantity and reduce overdue inventory;

④ Clear inventory in a timely manner: remove redundant inventory and recover surplus value.

In addition to storage fees, various fees such as Prime exclusive discount fees and peak season delivery fees have been added during the recent peak season, and UPS has also added overweight fees for goods between China and the United States. Therefore, peak season operations are not only about pursuing sales, but also require detailed budgeting and cost control, optimizing inventory and logistics management, or appropriately adjusting prices to reduce the burden.

Dear sellers, if you have a high inventory turnover rate, you may be able to digest the storage fees during the peak season. But for those sellers with a large backlog of products, now is the time to re-examine risk management and improve inventory sensitivity. After all, only by steadily managing costs can the peak season truly bring benefits, rather than burdens!

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