Super high discount! Amazon announces new FBA event

After Amazon implemented new commissions and long-term/monthly storage fees in the United States and Europe this year, many sellers' storage costs have decreased to a certain extent.

With the mid-year promotion holiday Primeday approaching, Amazon has introduced a new policy on storage fees, this time with a significant reduction in storage fees for sellers.

▲Update notification pushed by Amazon seller backend

To briefly summarize the content of the announcement, for some eligible products, if you can maintain the specified inventory level in the next period of time, you can enjoy a discount on monthly storage fees.

Let me explain it to you. Amazon’s purpose is also expressed very clearly in the announcement.

The discount on storage fees is intended to ensure that products with good sales and fast circulation can have sufficient inventory , allowing Amazon to place these products in warehouses closer to buyers to better fulfill the "one-day delivery" service promised previously.

Then the restrictions are clear. Only hot-selling products can participate in this discount. What are the specific criteria? Amazon has given two independent participation criteria. Let me briefly talk about these two criteria.

The first way is that Amazon’s backend algorithm grabs various data and determines that one of your SKUs is a hot-selling product, and it will be marked in the replenishment report generated by the backend.

The replenishment report will also give sellers a target inventory level range (for example, 60 to 120 pieces).

Let me show you an example.

You can download your own replenishment report in the background, then open it and select (whether it meets the discount requirements), and filter it to find out which ASINs meet the requirements. (If you don’t know how to read it, please scan the code at the end of the article and chat with me privately)

The report will also tell you the inventory range you need to maintain to enjoy the discount. As long as the inventory of this ASIN remains within the range for 21 days or more in the current month, you can enjoy the storage fee discount when paying the monthly storage fee in the next month.

In this condition, the inventory range and eligibility are generated by Amazon's backend algorithm based on factors such as the seller's sales situation and product category sales cycle.

Second, if there is no matching ASIN in the replenishment report, does that mean I will not be eligible for this activity?

Amazon also provides a second participation standard. If there are no eligible products in the timely replenishment report, if the monthly sales of a single FNSKU exceeds 60 pieces, you can also participate in this monthly warehouse discount.

At the same time, the storage level requirement in this standard is that sellers need to maintain more than 4 to 8 weeks of salable inventory for 21 days or more in the current month.

Sellers also need to estimate based on their own monthly sales. For example, in the 30 days of this month, my sales of a certain FNSKU are 90 pieces, with an average of 3 pieces sold per day.

If I want to participate in the storage fee discount, I must keep the inventory of this sku between 84 pieces (4 weeks * 7 days * 3 pieces) and 168 pieces (8 weeks * 7 days * 3 pieces) this month.

Amazon will apply the storage fee discount to all products that meet any of the above conditions when settling the monthly storage fee in the following month.

Note that while it is possible for a seller to meet both criteria (recommended by the Restocking Report and meeting the 60 units monthly sales requirement), the 21-day duration requirement for both criteria is calculated separately.

That is to say, if the inventory requirement of standard one is met for 10 days, and the inventory requirement of standard two is met for 15 days, you cannot participate in this discount activity.

The entire event will last until January 31 next year . According to the official case , the discount on storage fees before September is 75% off , and the discount will be slightly less during the peak season after October, but it is still 50% off .

You can also see from the intuitive data that the strength of this event is actually very large. Although only standard products can participate in this event, there are quite a few sellers who meet the requirements.

When Amazon announced the upgrade of its one-day delivery service, I analyzed that it is very likely that they will provide certain guidance to sellers on the quantity of inventory and warehouse distribution.

Because in order to achieve one-day delivery, a large amount of stock + more warehouses are definitely needed. The stock range required by the current activity is not uncommon for small and medium-sized sellers. At least one month's sales volume must be maintained in the available inventory.

Sellers who want to participate in storage fee discounts will definitely have to face a certain amount of inventory pressure, but the upcoming July Primeday will be a good opportunity for sellers.

You can set the stocking plan based on the stocking quantity requirements for this event and the stocking rules for Prime Day. This way, you can use the event to reduce inventory costs and use the big promotion festival to digest inventory.

I have compiled a list of tips for preparing for Primeday. Please scan the QR code below to get them.

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

Source: Cross-border Business School

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