Be careful what you put in for FBA storage reservation bidding

I took a look at the historical reservation fees data. Because everyone gets their reservation at the lowest price granted, some sellers have decided they’ll put in $100 per cubic foot to guarantee that they get the space.

Well… when too many people do this, space is actually granted at some pretty insane rates.

(columns are Date | Date Granted | Standard | Oversize | x-large | apparel | shoes)

Since this program got implemented the rates have mostly been a buck or two per foot, but the last couple of months there’ve been some pretty insane storage prices. So think carefully about what that space is actually worth to you before bidding on it.

Yup, I’ve seen these numbers as well from my SAS manager. Pretty wide range of prices. $100 a foot. LOL

This is exactly what Amazon was banking on when they created this BS program. Let us not pretend that Amazon is short on space. They’re not! They have space to spare / burn / lease like it’s going out of style.

Just shows you how shady and cunning Amazon is and I honestly don’t blame them. It is a business after all. If someone is willing to pay, I’m willing to sell… Is $100 a foot ethical when you have essentially unlimited space? No. Is it illegal to do what they are doing? No.

Now… Let’s get to the heart of the matter which is capacity. With the limits being what they are for Nov and Dec, anyone that actually needs to bid for space probably should examine their business plan. We loaded up FBA for all of Q4 plus an 8 week safety stock and still are under our Nov limit which is 35% less than Oct and Dec…

Our Nov limit is almost 4X what it was last year. Yes, we are still growing but not at 4X or anywhere near our historical averages YOY.

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Hm, part of it might be to try to get more money out of chinese sellers.

Remember that your space is “used” as soon as you create the shipment, if you’re shipping from china it could take months “in transit” which effectively doubles your space requirements as you’re blocked from creating shipments that exceed your capacity.

While $100 / foot is absolutely ridiculous, the sellers who got burned by that basically have no argument to make since they’re the ones who put that number in while bidding. It makes you wonder if Amazon saw those bids and suddenly decided they had a lot less space to offer that month.

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True… Too bad for them… About time they had an issue…

This really isn’t limited to Chinese sellers though. Lots of US based sellers don’t have their own storage facilities so they are doing the same thing.

IDK… For the first time since 2020, inventory limits aren’t an issue for us which is a relief. Now if FBA could just check in our ■■■■, things would be pretty good.

I remember sitting at my computer every Sunday night and refreshing that stupid limit screen when it updated to see if daddy would let us ship anything that week… :roll_eyes:

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When they were doing unit limits that was hell to deal with. I sell some items that are very small (like, you could fit 2000 in a box easily), but they had a limit of XXXX units. Cubic footage at least makes a lot more sense.

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I liked the first iteration of the program that was limited by the ASIN. Yea, you couldn’t keep a lot at FBA but you could stay in stock universally.

Both the last system and this one can make you SOL if you’re not careful.

In addition, new items were good to go on the first system. They are not with this one or the last one.

With all that said, the limits are reasonable this year. Remember when there were no limits ever? I do…

To get that luxury (for 39 weeks), you need a new account. Incredible that Joe Schmo can sign up to be a new seller and send 30,000,000 units to FBA if he wanted to in Dec.

Now that’s stupid…!!!

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Wait, new sellers get no limits for almost a year???

That makes absolutely no sense, those are the ones who are most likely to send in tons of stuff, sell zero of it, go bankrupt and leave Amazon with the bag. It honestly sounds like a glitch. They need historical inventory performance data to calculate what your limits should be, but because new sellers have no history, it just defaults to infinity because someone forgot to put in a number in that field.

And yeah, I remember running into the ASIN limit too. You’d basically find out when you go to create the shipment that they’re limiting you. And then I got blindsided by the overall unit limit. My warehouse told me they couldn’t create a new shipment because we hit our storage limit and I was like “what storage limit?” thinking we had unlimited since our IPI is good.

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Amazon says :arrow_heading_down:

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Imagine if credit card companies operated that way. “Spend as much as you need for the first 39 weeks so we can determine an appropriate spending limit for you.”

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I see it as a trap for dim witted or incompetent with this…

And this…

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