Amazon’s Free Removal Special and What It Means for YouCaitlin Donnelly
Amazon is getting prepared for the holidays in a big way. Yesterday, Amazon notified sellers that they will offer completely free removal of any of your products for a limited time.
Amazon frequently offers free removal from their warehouse throughout the year, although the “free” offer comes with some costly consequences for some customers. It’s common for Amazon to prevent sellers who take advantage of their free removal offer from being able to send those ASINs back until after a certain period of time.
For this offer, you can only hold the amount of inventory that Amazon projects you will sell based on your last 90 days of sales. This may or may not be an accurate portrayal of what will happen during the fourth quarter. For most, a forecast based on average sales from the summer will be inaccurate compared to actual sales during the busiest quarter of the year, leading to costly issues. Also take note that Amazon can take up to two weeks to process the removal order and can revoke this offer at any time.
Alternately, this can be an extremely beneficial offer for you if your sales aren’t quite where you want them to be and you aren’t forecasting a large jump in sales during the holiday peak. This can also be enticing if you want to sell through “fulfillment by merchant” on Amazon or other eCommerce channels. Third party fulfillment is a great opportunity if you are looking to diversify your interests. Finally, Amazon’s storage cost skyrocket during Q4. Your storage costs will dramatically decrease if you can take advantage of storage at a 3PL company.
Email from Amazon to its FBA sellers:
Hello from Fulfillment by Amazon,
On October 1, 2017, monthly inventory storage fees will increase from $0.64 per cubic foot to $2.35 per cubic foot for standard-size items and from $0.43 per cubic foot to $1.15 per cubic foot for oversize items for October, November, and December. For a limited time, however, you can remove inventory for free to avoid these previously announced fees.
Starting today, September 19, 2017, FBA is waiving new removal-order fees for inventory that’s currently in U.S. fulfillment centers. Act quickly before normal removal fees apply again.
To start, go to Manage Excess Inventory (Pro sellers) or FBA Inventory Age (Individual sellers) in Seller Central (sign-in required). Then choose Create removal order from the menu next to any FBA item in your inventory.
The new Inventory Performance Index (IPI) can help you identify which ASINs to remove. The IPI will show your excess inventory and the estimated costs of holding this inventory.
If you remove inventory free of charge under this promotion, you will not be able to send in more units of these ASINs until your inventory levels fall below our projection of your sales for the next two months or until January 1, 2018. This sales projection is based on your average sales from the past 90 days.
Note that removals during peak and promotional periods could take longer to process than the standard 10 to 14 days. Learn more about free removals (sign-in required).
The duration of the promotion is limited and may be discontinued at any time. Act now to take advantage.
Thank you for selling on Amazon.