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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
- Facebook – Amazing Freedom Amazon Sellers
- PM to Andy Slamans (the Bald one) on Facebook
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