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Don't Be Blindsided By FBA Policy Changes

by Simon Eskow
Sellers know first-hand what a tight ship Amazon run. Since it promises fast delivery handling such a high volume, Amazon needs an efficient supply chain.

Thus sellers must comply with Amazon FBA policy, otherwise Amazon will hit them with fees. And Amazon sellers in the US need to be aware of policy changes that go into effect on April 1.

Amazon Adjusts FBA Policy to Improve Inventory Management

Amazon announced earlier this year changes to FBA storage fees and FBA policy to improve inventory management. In short, the changes aim to help get your products to your customers more quickly. These changes apply to Amazon’s US marketplace and sellers only.

Monthly Inventory Storage Fees

Beginning April 1, Amazon’s monthly inventory storage fees will be increased by $0.05 per cubic foot for standard-size and oversize items. You’ll see these changes reflected in May for products you’ve stored in April 2018.

Long-Term Storage Fees

Later this year, beginning September 15, Amazon will adjust long-term storage fees. Moreover, Amazon will change the assessment dates from semi-annual to monthly basis.

Minimum Long-Term Storage Fee

From August 15, 2018, Amazon will add a minimum charge of $0.50 per unit per month for items in fulfillment centers for 365 days or more.

FBA Policy and Professional Sellers

Finally, Amazon seeks to reduce constraints on its supply chain due to slow-moving inventory. Beginning July 1, Amazon will benchmark sellers in its Inventory Performance Index. So, if a Professional seller falls below a benchmark score of 350 six weeks prior to the next quarter, Amazon will limit storage access for that quarter. Amazon will also charge overage fees for excess inventory. Lastly, sellers will not be able to create a new shipment until they sell enough to bring existing inventory below the limit. Read more about that here.