2023 FBA monthly storage fee and aged inventory surcharge changes

2023 FBA monthly storage fee and aged inventory surcharge changes

If I am reading this right a surcharge will only apply if inventory utilization exceeds 26 weeks of storage = 26/4 = 6.5 Months - which is fair.

And the only other major change is the increased standard storage fee by $.04

I guess because I saw the notice today and ASV already mentioned that new sellers can essentially dump inventory without surcharges which is asinine; perhaps to encourage new sellers to venture into amazon without fear of storage - fair since existing sellers get 6.5 months :person_shrugging:

Just want to make sure I didn’t miss anything as we’re getting ready to send a :poop: ton to FC’s for FBA

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I think it is 6 months, since the average is 4.3 weeks in a month.

And Yes it is fair, since it is based on the average so if you have some quick turn products and some slower ones, older than 6 months, it should also still work out.

That is our mix, so it will be interesting to see. Waking up in the morning, and finding your allowed shipments were half of what it was when you went to bed was nuts.

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The formula for the ratio shows: (T13W daily inventory volume / T13W daily shipped volume) / (7 days in a week)

It shows to calculate the storage utilization ratio by dividing average daily inventory volume stored by average daily shipped volume over the trailing 13 weeks, and normalizing it by number of weeks.


I also received an email this afternoon with the number provided:

Review your storage utilization ratio estimates for February 28, 2023:

Standard-size storage: #.## weeks
Oversize storage: #.## weeks


They also stated there would be a tool soon, but I cannot find it today.

eventually

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That’s how I read it as well.

How does this work with exceeding your capacity limit when Amazon decides to take today’s ridiculously high capacity limits and cut them by 70% in Sept / Oct?

Thought there was a fine for that somewhere in the policy. Seems like something Amazon would do - Pull the rug out from under sellers without notice.

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My reading of this is that capacity limits will remain in effect as described:

(T13W daily inventory volume / T13W daily shipped volume) / (7 days in a week)

And nothing but the price changes but you’re right, you never know.

I sent the query to seller support for shits and giiggles since the NSFE is dead.

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Please share their response.

First 3 paragraphs seem like copy paste templates.

They then reiterate the precise description of the the monthly capacity limit assessments. I guess it won’t change from hereon out. Although in the even of noobs filling up space - I dunno how, in such an event, capacity limits won’t be reduced.

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Have you looked at your Apr / May projections? Ours are down a little each month and by the same percentage when looking at both my Amazon accounts. They are polar opposites of each other in terms of volume.

If we go look at Amazon’s forecast of sales for our items, they have them trending up at a decent clip through the end of the year which is based on history I’m sure.

If the capacity forecast is being lowered and the sales forecast is higher either the 2 algorithms aren’t talking to each other (what a surprise) or the grand plan is to keep slashing capacity back to nothing again for Q4. I would bet pretty much anything that we are going right back to the same place we have the last 3 years.

I don’t want that to happen and I think Amazon has more than enough space but I still think it’s going to happen. I also think that Amazon will do a much better job of supporting their seasonal sellers for Q4 / Halloween / ■■■■ like that. I mean if they can’t get that figured out after 3 years of nonsense, that’s really sad.

That had to have cost Amazon a ■■■■ ton of money the last couple Q4’s. Pure incompetence.

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Just went though the demand forecast explainer

https://sellercentral.amazon.com/help/hub/reference/GKDAPLNPVF9BENVB

So it seems the mean demand is based on historical data whereas optimistic demand (the dotted line) is what they expect in perfect circumstances - like you ours are trending up.

In the capacity manager, our estimates go up for April and then drop every so slightly in May but I suspect that has to do with our almost oos on one major SKU

So guess we’ll see.

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That’s interesting. Wonder if there is some sort of actual seasonal element in play finally…

I’m sure you don’t sell what I do but both my accounts are supplements and both show an identical drop percentagewise.

Thanks for sharing.

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Confirmed: I’m not in supps.

image

The problem here is ‘historical sales volume’ for annual seasonal periods sucks because their ‘historical’ limits throttled down sales in at least the last two prior seasons so this is a meaningless assurance.

‘new selection… deals… fulfillment center capacity’ promises reward for expanding selection and over-stocking to support give-aways. Fulfillment center capacity is their out, CYA for more of the historical same.
None of this seems new, only the calculation process.

The previous 30 days (or whatever number they choose) is still problematic for seasonal sellers. The biggest seasonal segment is arguably Christmas. A seller of Christmas items is not going to have October sales history that is an accurate forecast of November sales, or November vs December.

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I find this fluff garbage on every case lately. I find it infuriating, insincere and time wasting. Just get to the point, don’t try to assure me that you care when your metrics don’t allow you to.
Do they have an A.I. paragraph insertion key on their keyboard??

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You’re right! There’s no way they are going back to 2019 for accurate data for sellers here that long or longer. Really not the right thing to do, even if they wanted to be nice because a lot could have changed since then.

With that said, based on our tiny analysis / comparison here, it may be being done by category this year as some level of protection for seasonal sellers / categories.

I’m giving a lot of credit to Amazon here that they would be this insightful though.

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Dangerous assumption LOL!

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