How To Slash Your Amazon FBA Storage Fees

[et_bloom_inline optin_id=optin_3]

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


  • 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


More Post Like This:
How to Start Amazon FBA with No Money


Amazon Frequently Bought Together Feature
Unlocking Click Bias Secrets Seller Sessions A9
Colin Raja Seller Sessions Podcast (1)
Shopping queries dataset Seller Sessions
Seller Sessions Podcast Elizabeth Greene
Multi objective ranking
seller sessions the complete guide to autocomplete on amazon
1 2 3 98
databrill logo

Looking for a Better Agency?

Are you a 7 or 8-figure Amazon seller who is…

Table of Contents

Latest Podcasts:

Databrill Logo

Looking for a Better Agency?

Are you a 7 or 8-figure Amazon seller who is…