How To Slash Your Amazon FBA Storage Fees


Andy Slamans is talking about how to slash your Amazon FBA Storage Fees. Leveraging a 3rd party storage facility…

  • Andy has been an Amazon Seller since Jan 2013
  • Danny does not store in Amazon but uses a prep centre and send in on velocity
  • Japan is a very expensive Amazon Storage site
  • In USA we’re about 18 miles from the port
  • Far better to be outside of Amazon as if there’s a suspension then you have to pay to get it out and comes out in poor packaging

Amazon Storage increases

  • Andy has in years gone by supported Amazon storage
  • The fees were really low when Amazon started but things have changed
  • Amazon started to fill up and so storage is important
  • They have started to raise their fees
  • Andy has noticed the fees rising over the last two years and so he secured his own space
  • Andy breaks even just storing the products in his own warehouse
  • Amazon fees will continue to go up
  • They will push for more Seller fulfilled PRIME

4-6 Months Inventory on-hand

  • It’s not for everybody, Andy has grown to have a lot of inventory
  • Talking 4-6 months of inventory on-hand
  • Especially around Q4 and making sure you’re stocked up
  • Makes Andy feel a lot less stressed

Shipping in

  • Drip-feeding it in as much as possible to help slash your Amazon FBA storage fees
  • Working on the optimal number of units based on Sales Velocity
  • Wanting preferred treatment in Amazon Search
  • If there’s more in the Amazon warehouse they can spread it out around the country
  • Andy believes they like this that makes them feel more comfortable
  • If Andy has 600 units in stock and a competitor has 200 he feels that Amazon gives preference to the higher stock

Not Clearing quickly

  • You send the stock in to Amazon but it’s not clearing quickly
  • Working out when is the right time to send stock in to optimize how much is in the warehouse but not ready for sale
  • Send in the exact amount you need for FBA
  • Too little and run out of stock or too much and hit with storage fees
  • As of April 1st the storage fees go up
  • As of Sept 15th 2018 – adjustment to long term storage fees

Selling through your stock

  • Inventory Performance Index coming and if you don’t score well over 3 months rolling you get capped on storage
  • Use social coupons to clear over-stock
  • Keep your index high to ensure you’re good for Q4

Slash your Amazon FBA storage fees in half

  • Using a 3rd Party storage company is a huge saving when looking to slash your Amazon FBA storage fees
  • There is a bit more logistical work for you but worth the time investment

Software

  • If you’ve got 10 products you can do it from a spreadsheet
  • But if you’re a big seller or have many variations then you may want a tool
  • It’s a mathematics problem of following the numbers
  • You could pay a VA to manage the logistics out of the savings you make from the storage

Andy’s approach

  • Has the Seller Fulfilled Prime badge
  • Reach 80% of US Population within 2 days
  • Uses UPS Ground as the carrier service
  • Has a UPS account and gets better rates than Amazon
  • He pays on his credit card and gets lots of points on his card
  • Not using the Amazon preferred UPS selection but doing his own UPS account separately

Contact

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