Free Storage
I've been informed by a colleague (not Amazon) that the first 3 units held by Amazon do not incur storage charges. I am currently looking to complete some Removal Orders for stock that it isn't selling quickly. If the storage is free for a small amount of units, I'm inclined make removals but leave 3 units there in case it sells, as long as there's no storage fees. Can someone please confirm and clarify this? Furthermore, would these 3 units be exposed to Long Term Storage Fees if they didnt move for a very long time?
Free Storage
I've been informed by a colleague (not Amazon) that the first 3 units held by Amazon do not incur storage charges. I am currently looking to complete some Removal Orders for stock that it isn't selling quickly. If the storage is free for a small amount of units, I'm inclined make removals but leave 3 units there in case it sells, as long as there's no storage fees. Can someone please confirm and clarify this? Furthermore, would these 3 units be exposed to Long Term Storage Fees if they didnt move for a very long time?
0 replies
Seller_y7W9ccUlauftE
It used to be that 1 unit was free, but amazon got rid of that deal 8 or 10 years ago. They might have special offers available for some sellers, but you would need to check with amazon to see if you are included.
Seller_ZP0Ol4gJanvQY
That ship has sailed long ago. Now you are even charged for not having enough inventory on hand.
Christine_Amazon
Hello @Seller_aQrLF8nDFtPJR
Christine here from Amazon Forums.
I want to address the claim that "the first 3 units held by Amazon do not incur storage charges." This is not correct. Amazon does not have a policy of offering free storage for a small number of units. All inventory stored in Amazon fulfillment centers is subject to storage fees, regardless of the quantity.
Regarding your strategy to leave 3 units to avoid storage fees, I must emphasize that this approach would not work as intended. You would still incur regular storage fees for those units, and they would also be subject to Long-Term Storage Fees (LTSF) if they remain in the fulfillment center for an extended period.
Here's a brief overview of the storage fees you should be aware of:
- Monthly Inventory Storage Fees: Applied to all inventory stored in Amazon's fulfillment centers.
- Long-Term Storage Fees (LTSF): Applied to items stored for 365 days or more. These are in addition to monthly storage fees.
When considering Removal Orders, it's important to base your decision on factors such as sales velocity, storage costs, and your overall inventory management strategy, rather than attempting to find loopholes in the fee structure.
If you have slow-moving inventory, you might want to consider:
- Adjusting your pricing strategy
- Running promotions to increase sales
- Removing excess inventory to minimize storage fees
For the most up-to-date and accurate information on Amazon's fee structure, please refer to the official Seller Central help pages or consult with Seller Support.
Christine
