FBA New Annual Storage Fee – Understanding


OK, there seems to be a lot of confusion on this new FBA Annual Storage Fee, so this Blog Post is hopefully going to shed a little light on the subject, and help you to understand what is really going on, and to dispel the panic and misunderstanding that seems to be rampant.

No, it is NOT $45 per unit.
It is $45 per cubic foot of volume space taken up.
So it depends on how large an item is.

Here is the exact rule:

Monthly Inventory Storage Fee

Month Cost per cubic foot per month
January – September $0.45
October -December $0.60

Effective August 15, 2011:

  • An annual Long-Term Storage Fee of $45.00 per cubic foot will be applied to any Units that have been stored in an Amazon fulfillment center for one year or longer. The fee is in addition to the regular Inventory Storage Fee and will not be charged if a request has been made to remove or dispose of the Units prior to the fee being charged.
  • The per Unit price of a removal for Media and Non-Media Units will be reduced from $0.60 plus shipping to $0.50 including shipping. Alternatively, Units can be disposed of for $0.15 per Unit. (The per Unit price of a removal for Oversize Units will be reduced from $3.00 plus shipping to $0.60 including shipping, or $0.30 for them to be disposed.)
  • Each seller may maintain a single unit of each ASIN they carry without being charged the Long-Term Storage fee.
  • In June 2011, we will be providing FBA sellers with more details about this change.

http://www.amazon.com/gp/help/customer/display.html?ie=UTF8&nodeId=200627230

Calculating Cubic Feet from Inches

Multiply length x width x height in inches to get the volume.
Divide the volume by 12 cubic inches (12″ x 12″ x 12″ = 1,728)
Example: A Unit measuring 47″ x 12″ x 10″ divided by 1,728 = 3.3 cu. ft.

Or use the calculator below:

Dimensions

Enter the dimensions of a single Unit when properly packaged and ready for shipment to customers in accordance with the FBA Program Policies to calculate estimated volume and the Inventory Storage Fee.

Length inches
Width inches
Height inches

Estimated Volume and Inventory Storage Fee

Volume
(Length x Width x Height)/1728
cubic feet
January through September
($0.45/cubic foot)
$ per month
October through December
($0.60/cubic foot)
$ per month

If you go to Inventory Amazon Fulfills,
the last columns shows you the Unit Volume (cubic feet):

Here are some examples from my Inventory:

0533125030-1267725660696 Dear Teacher Used – Very Good $10.00 0 1 0 0 0.01
0553255681-1263403763741 Anxiety Disease, the Used – Good $2.65 0 1 0 0 0.01
0609808214-1263333505959 The Official Overstreet Comic Book Price Guide, 32nd Edition Used – Very Good $5.75 0 0 0 0 0.04
0679404945-1263414440612 The Peacemakers: Arms and Adventure in the American West Used – Very Good $23.99 0 0 0 0 0.07
0684834200-1263403763740 Autopsy for an Empire : The Seven Leaders Who Built the Soviet Regime Used – Very Good $11.99 0 1 0 0 0.05
0689110790-1263333505958 Susan Hayward: Portrait of a Survivor Used – Good $12.00 0 0 0 0 0.04
0721683169-1267725660695 Physical Therapy for Children Used – Like New $50.00 0 1 0 0 0.09
0748733523-1267725660695 Rehabilitation of the Severely Brain-Injured Adult: A Practical Approach Used – Very Good $60.00 0 1 0 0 0.03

Notice that most are .01, .03, .05, etc..

So for a item that is .03 x $45.00 = $1.35 annual charge.

Just to put things in perspective.

Bob Willey

Bob’s Neat Books/Stuff

Find ME: Facebook Twitter eBay Amazon about.me

About FBARocks Bob Willey

My name is Bob Willey and I own Bob's Neat Books & Bob's Neat Stuff & SellerCoaching.com ***** We've been selling on Amazon using FBA since June of 2008, and on Amazon since 2005. We are mostly FBA and we use FBA to sell practically anything! When it comes to selling on Amazon using FBA, we don't discriminate. The only requirement is that the items are profitable! We sell toys, games, books, and media items such as DVDs, CDs, even VHS tapes! We've also been selling on eBay since 1998 with over 11,000 feedbacks (100% Positive)!! Have been an eBay Trading Assistant for over 9 years. Also sell some Media items on eBay. ***** I also provide Seller Coaching services, designed to be one-on-one via Skype video, to target your exact needs, not generalized training, but specifically what YOU need. http://Facebook.com/SellerCoaching ***** I also moderate the YahooGroup FBAForum (see link below): http://finance.groups.yahoo.com/group/FBAForum ***** My background is varied, as I owned a computer consulting business for 28 years, and a Brick-n-mortar Auction House for 5 years with a weekly auction filling a 15,000 sq ft building. Plus I have done over 150 Estate Appraisals. OK, I enjoy STUFF.... ***** http://SellerCoaching.com
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One Response to FBA New Annual Storage Fee – Understanding

  1. Simon says:

    As a seller of books through FBA in the UK, I don’t have a problem in general with the new long term storage fees. I can reason that space is an issue for Amazon, etc.

    However, what I STRONGLY object to is the fact that they are applying the new pricing structure for existing stock which may still expect to be sold within, lets say, another 12 months time. It is totally underhand and immoral. We could end up with a situation where sellers are having to resend stock back and forth to Amazon just to avoid the heavy storage fees.

    Furthermore, the opportunity to get back stock for free is only open to stock that will be 12 months or over in August, but what about stock that is less than 12 months in August, but is still expected to take longer than 12 months to shift?

    I have sent a polite support email to Amazon to try and discuss this further but inside I am raging and worried that they will not come to a compromise on my existing stock (currently 40,000 units). I only hope Amazon come to there senses on existing stock, though I doubt it.

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