Amazon's new fees are coming! Warehousing costs are already skyrocketing

In the past two days, sellers have received emails from Amazon, reminding them that Amazon will start to impose a surcharge on warehouse utilization starting in April!

As the name suggests, this utilization surcharge is charged to sellers with poor warehouse turnover. According to the official algorithm, warehouse utilization rate = average daily inventory in the past 13 weeks ÷ average daily delivery volume.

For sellers with a warehouse utilization rate of less than 26 weeks, Amazon will not charge this surcharge. For sellers with a warehouse utilization rate of more than 26 weeks but less than 39 weeks, Amazon will charge an additional $0.69 per cubic foot on top of the original monthly storage fee. For sellers with a warehouse utilization rate of more than 39 weeks, Amazon will charge an additional $0.94 per cubic foot. As we can see from the above picture, this surcharge is very, very scary. It is almost as expensive as the normal monthly storage fee. If it exceeds 39 weeks, this surcharge is even more expensive than the storage fee! This means that if the seller does not have a good turnover, he may be charged double the storage fee!

What is everyone's warehouse utilization rate? Come and vote to see what your warehouse utilization rate is among sellers.

If the utilization rate is not ideal, the current work is to focus on whether to optimize the redundant inventory. Now is not the time to wait for a year to collect long-term storage fees. If the new product inventory is unsalable, it will bring double the storage costs before a full year. This is Amazon forcing sellers to quickly abandon poorly performing products and reduce inventory.

In addition , the long-term storage fee has been renamed as overage storage capacity surcharge, and the charging stage has also undergone major changes.

Previously, long-term storage fees were charged based on inventory stored for more than three quarters. Now it has been changed to an overage storage capacity surcharge, which will be charged from 180 days, or six months after storage . Moreover, as long as it exceeds these six months, the overage storage fee will gradually increase every month thereafter.