2018 FBA Storage Fee Updates

2018 FBA Storage Fee Updates

FBA Storage Fees

Amazon has been implementing changes to its storage fees recently, a big one that’s about to hit is how they handle long term storage fees. Previously Amazon assed and billed us semi-annually, reviewing our long-term storage on February 15th and August 15th of every year. This timeframe gave us a reasonable amount of time to clear out inventory that has been sitting for too long. That’s changing to a monthly long term storage fee; they will now asses our long term inventory on the 15th of every month. They are making it a little more challenging to clear out inventory and avoid the fee.

Click the button below for more info on Amazon’s storage fees.

Long term storage fees

Amazon's new LTSF starting September 15th

At Packaderm we store your inventory per pallet, using Amazon's pallet guidelines of 40" x 48" x 72". One full pallet is 80 cu-ft and our storage fee is $15 per month per pallet.

Pallet storage fee

Lets take a look at their regular storage fees

The table above shows a price break down per cubic foot and per full pallet. Storage fees go up considerably during the holiday months.

Savings on pallet

SAVINGS

These are the basic numbers you can save throughout the year by storing at a Packaderm Warehouse. Packaderm currently charges $15 per pallet per month for storage. Utilizing a third party warehouse for storage and timing your shipments to Amazon can help you save on Amazon storage fees and create a more streamlined business by using your savings to grow your company. Amazon is pushing for FBA sellers to handle their own storage and not use their fulfillment centers as storage facilities. We’ve seen huge savings by going this route.

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