Amazon is actually going to subsidize sellers using FBA?

Amazon is actually going to subsidize sellers using FBA?

New Policy for FBA’s Long-term Storage Fee (LTSF)

It started to land last month.

However, many sellers are still unclear about the content of the new policy.

Until this month, I was "paid" for long-term storage fees again

I was so busy looking through the official policy content


In fact, this update can be summarized into two main contents:

One is that the long-term storage fee will be charged on the 15th of each month.

More than six months but less than one year ($3.45 per cubic foot)

One level over a year ($6.90 per cubic foot)


The second is inventory that has been stored for more than one year

Minimum storage fee policy will also apply

(When the average cost per item is less than 0.5 USD, it will be calculated as 0.5 USD)


The content of these new policies is in Alice’s previous article

If you want to know more, please click below.

Will you lose money in the middle of the month? Amazon’s policy update is coming soon…


Long-term storage fees are doubled compared to before

Plus the monthly collection frequency

As soon as this policy was announced, sellers began to wail.

The following policy is for all affected sellers

Definitely great news.

Amazon has decided to offer all eligible sellers

Long-term storage fee compensation


Amazon will target products participating in the promotion

Provides up to 6 months of long-term storage cost compensation


These products require both parent and child product ASINs.

Created between August 21 and November 30 this year

It must be delivered to the operation center before December 5 this year.


Products that meet the above requirements and belong to the following categories

Congratulations, you can ship as much as you want during this peak season


After signing up for the compensation plan

Amazon Logistics will regularly notify

The amount of inventory that can be compensated in this period

The long-term storage fee will be assessed on the 15th of each month .

The corresponding compensation amount will be paid on the 15th of the following month .


What does this policy mean for us sellers?

We used to worry about shipping too much during the peak season.

If it cannot be digested after six months

You have to pay high long-term storage fees to Amazon


With this new promotional compensation policy

If the above situation really happens

Amazon will also compensate sellers for these long-term storage fees.

And it will last for six months


Although this policy will become invalid if the storage exceeds one year

But for sellers, it is undoubtedly equivalent to

It took an extra six months to digest these goods.

Doesn’t the pressure of stocking up for the peak season suddenly decrease a lot?


At the same time, friends who are still celebrating should also pay attention.

Regular storage fees remain in effect

These extra stocks will still affect your inventory performance

And included in the inventory limit


Overall, this new policy does give

Sellers who were busy preparing for stockpiling have reduced a lot of burden

Allowing everyone to adopt a more aggressive stocking strategy

Make sure your best-selling products will not end badly due to out of stock


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