Connect with us
ad

Amazon introduces a new Storage Utilization Surcharge Fee

Kika Angelic

Published

on

Amazon just announced that it will be imposing a storage utilization surcharge for the monthly storage fee, which takes effect on April 1, 2023.

The surcharge will be based on your storage utilization ratio, or the ratio of your average daily inventory volume stored in cubic feet divided by the average daily shipped volume in cubic feet over the trailing 13 weeks.

It will only apply to Professional sellers with a storage utilization ratio above 26 weeks. The storage utilization ratio will be calculated on the last day of the month, and the corresponding surcharges will be applied as part of the storage fee charges of the following month.

At the outset, the imposition of a storage utilization surcharge is likely a major concern for sellers with high storage utilization ratios. In the long run, this could necessitate working with a reliable third-party logistics company (3PL) in order to avoid the surcharges, which will potentially drive 3PL prices way up. In the short run, sellers will be forced to either quickly reduce their inventory levels stored in Amazon FBA or find quick ways to significantly increase sales velocity.

Based on the table provided, the surcharge will affect inventory stored inside Amazon FBA warehouses for over 6 months (charges apply beginning on the 181st day). This will likely impact many third-party sellers, as having 6 months’ worth of inventory has been the rule of thumb for running a sustainable Amazon business for years.

Here you can view a screenshot of Amazon’s e-mail regarding the matter:

Storage utilization surcharge will be available for monthly storage fees

Hello,

Effective April 1, 2023, we will introduce a storage utilization surcharge for monthly storage fees to align the fees with our underlying costs. This surcharge will apply for sellers who have a storage utilization ratio that’s above 26 weeks and meet the surcharge criteria.

The storage utilization ratio is your average daily volume (in cubic feet) that’s stored divided by the average daily volume (in cubic feet) that’s shipped. This calculation is done for the past 13 weeks.

Review your storage utilization ratio estimates for January 31, 2023:
– Standard-size storage: >52 weeks
– Oversize storage: Not applicable

If one or both of your storage utilization ratios are above 26 weeks on April 30, 2023, you will be charged the surcharge in May.

To prevent the storage utilization surcharge, you must reduce your storage utilization ratio. You can sell more inventory, or request a liquidation, removal, or disposal order to reduce your storage utilization ratio.

For more information, go to these help pages:
“FBA inventory overview”
https://sellercentral.amazon.com/help/hub/reference/external/GTMXYZN64UJL7TT6

“Remove inventory (overview)”
https://sellercentral.amazon.com/help/hub/reference/external/G200280650

“2023 FBA monthly storage fee and aged inventory surcharge changes” 
https://sellercentral.amazon.com/help/hub/reference/external/GJ9NNG7RK4TU6E3Z

The Fulfillment by Amazon team

I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

In case you are an Amazon Seller who needs help with Seller Identity Verification on Amazon, please feel free to watch my most detailed video on the subject, addressing all common questions:

My name is Kristina Hajdukova, but I am known as Kika Angelic. I used to be the most prolific and reputable contributor on the Amazon Seller Forum until being removed and defamed. Here you can learn more about my story: My GoFundMe page seeking help from Amazon – feel free to support me! Eventually, I became the first person in the world to succeed in a defamation lawsuit against Amazon and the company had to prominently publish me an apology and pin it to the top of the whole Amazon Seller Forum, click here to see it! Regarding Amazon Seller Performance, you can always participate in my Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome. If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

Continue Reading
1 Comment

1 Comment

  1. Pingback: Amazon introduces a brand new Storage Utilization Surcharge Price – Knowledge of world

You must be logged in to post a comment Login

Leave a Comment

Amazon is trying to make sellers use their new ocean freight service for FBA shipments from China

Kika Angelic

Published

on

Today, Amazon e-mailed their third party sellers to promote a new service called Amazon Global Logistics (AGL) aimed to offer reasonably priced shipments.

According to the announcement, Amazon Global Logistics (AGL) offers FBA Sellers end-to-end shipping services via ocean transportation options from CN into EU and US fulfilment centres and/or SPs’ own warehouses that can be conveniently booked through Seller Central or Shipper Central. AGL shipping services includes shipment pick-up in origin, palletization (if required), export/import customs clearance, and domestic delivery in the destination country.

This is the first time Amazon started offering AGL directly to sellers. It will also include the option of shipping to your own warehouse through our Ship-to-Storage (STS) program. STS allows you to ship ocean full-container-load (FCL) cargo with Amazon Global Logistics (AGL) from China to your designated, non-Amazon storage facility.

Here you can view a screenshot of the full announcement from agl1-eu-sales-team@amazon.com:

Here is a copy of the full text:

Onboard now with Amazon Global Logistics for global ocean shipping!

Dear Seller,
 
Amazon Global Logistics (AGL) offers FBA Sellers end-to-end shipping services via ocean transportation options from CN into EU and US fulfilment centres and/or SPs’ own warehouses that can be conveniently booked through Seller Central or Shipper Central. AGL shipping services includes shipment pick-up in origin, palletization (if required), export/import customs clearance, and domestic delivery in the destination country.
 
We also give you the option of shipping to your own warehouse through our Ship-to-Storage (STS) program. STS allows you to ship ocean full-container-load (FCL) cargo with Amazon Global Logistics (AGL) from China to your designated, non-Amazon storage facility.
 
What are the benefits of AGL services
 
·       Save Time: Deliver products faster by shipping directly from SPs’ manufacturers in China to fulfillment centers and/or 3rd party warehouses.
·       Reduce Costs: Lower inventory handling costs through a more efficient supply chain management.
·       Ship with confidence: Book shipments with predictable and efficient shipping schedules at competitive rates.
·       Simplify operations: Use a single portal to create, book, track, and pay for shipments.
 
How to get started
 
There are three simple steps to get started.
 
Set up your payment method choosing the currency in which you wish to pay
The second step is to create your Importer of Record (IOR) profile. You will need to create an Importer of Record profile for each country you would like to import to. Please select the following links based on the destination country you plan to ship to; (Portal Link: UKDEFRIT,ES).
Once your IOR profile has been approved, you will be able to place your first booking. You can find our latest booking guides by marketplace here; (Booking Guide Link: UKDEFRITES).
 
Helpful resources:
Download our Getting started guide
Download our Container Checklist guide here
 
Kind regards,
The Amazon Global Logistics Team
Amazon.com | EU
agl1-eu-sales-team@amazon.com

I hope you found this update helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

In case you are an Amazon Seller who needs help with Seller Identity Verification on Amazon, please feel free to watch my most detailed video on the subject, addressing all common questions:

Continue Reading

Important update regarding your Amazon FBA inventory at AFW1

Kika Angelic

Published

on

This week, Amazon e-mailed their third party sellers regarding FBA inventory stored in the AFW1 warehouse, which was damaged due to severe weather causing structural damage to that facility, forcing it to close. It is expected to remain closed until at least the end of April 2023.

According to the notice, Amazon will be soon reimbursing sellers for any lost and damaged inventory, adjusting their IPI Score or refunding storage fees.

Here you can read a copy of the full announcement:

Important update regarding your inventory at AFW1

Hello, 

Our records indicate that you have inventory at, or on the way to, our AFW1 fulfillment center. On December 13, 2022, severe weather caused structural damage to that facility and we were forced to close. We expect to remain closed until at least the end of April 2023. We understand this has affected your business and will work to provide the most up-to-date information. 

Below are other important updates for your inventory stored at AFW1. 

   1. While AFW1 is closed, we are unable to fulfill customer orders with inventory stored there. Once AFW1 is operational again, we will evaluate the condition of your inventory to determine if it is sellable. We expect the fulfillment center to remain closed until at least the end of April 2023 and will communicate further details on sellable inventory as we know more in the coming weeks. Inventory will be evaluated based on the inventory adjustments policy (https://sellercentral.amazon.com/help/hub/reference/external/G200453260). If you don’t agree with the Amazon valuation of a unit, you can file a claim using the Contact Us page in Seller Central within 90 days after we issue the reimbursement. If we determine your inventory was damaged by this incident, we will reimburse you per our FBA inventory reimbursement policy (https://sellercentral.amazon.com/help/hub/reference/external/G200213130). You will be able to track your refund by accessing your Reimbursements report (https://sellercentral.amazon.com/reportcentral/REIMBURSEMENTS/0).

   2. We will refund the storage fees for any inventory affected by this closure. Storage fees from December and January will be reimbursed by March 15. You may see storage fees associated with affected inventory from February-April, which will be refunded on a monthly basis until AFW1 is operational. 

   3. For shipments already sent to AFW1, Amazon will continue to redirect them to a nearby fulfillment center at our cost. 

   4. For any inventory that has been redirected or is currently available in other fulfillment centers, those listings will remain sellable and we will fulfill customer orders with the available units. Any new shipments will go to a fulfillment center that can currently fulfill customer orders. If stranded inventory impacted your ability to sell, we will contact you with additional information and details. 

   5. If your Inventory Performance Index (IPI) score is being affected by this closure, we will ensure your capacity limit is not negatively affected and will allow you extra capacity if necessary, beginning now and for at least 13 weeks after AFW1 is reopened. We’re aware that the stranded inventory can impact your IPI score and this incident was out of your control. We will share further details in the coming weeks to help navigate this situation.

Action requested: If you have created shipments planned for AFW1, but have not sent them yet, please delete these shipments and re-create them. A new shipping destination will be automatically assigned during the creation of the new shipment.

For additional details, go to “FAQ for the AFW1 closure”:
https://sellercentral.amazon.com/help/hub/reference/external/G5HFTYE2FWA3N7G6

We are still actively investigating this incident and will update this page and share more details with impacted sellers as we have more information. We apologize for the inconvenience, and thank you for your understanding and patience. 

The Fulfillment by Amazon team

I hope you found this update helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

In case you are an Amazon Seller who needs help with Seller Identity Verification on Amazon, please feel free to watch my most detailed video on the subject, addressing all common questions:

Continue Reading

Impact of negative Product Reviews on your Amazon business

Kika Angelic

Published

on

Negative feedback is something that every business will experience at some point, and it can have a significant impact on product sales. When customers leave negative product reviews, it can be discouraging for business owners and employees, and it can also turn potential customers away. In this article, I will explore the impact that negative feedback can have on product sales.

Decreased Trust

Negative product reviews can decrease the trust that customers have in a product or an entire brand. If a customer sees negative feedback about a product, they may begin to question whether the product is worth buying. If they don’t trust a product, they are less likely to make a purchase.

Brand Damage

Negative product reviews can damage a brand’s reputation. When customers leave them, they can be seen by potential customers who are researching the product. If there is a pattern of negative comments, it can make a brand look unreliable, untrustworthy, or low-quality. Brand damage can be difficult to overcome, and it can have a long-lasting impact on sales.

Increased Customer Returns

Negative product reviews can lead to increased customer returns. If customers purchase a product in a hurry and then go through the reviews, they may choose to return the product for a refund or exchange. This can be costly for businesses, as they may need to absorb the cost of the return or exchange, as well as the cost of shipping.

Customer Loss

Negative product reviews can lead to the loss of customers. If a customer has a negative experience with a product, they may choose to take their business elsewhere. Additionally, if a customer sees negative comments about a product, they may be less likely to purchase from the brand again in the future. Losing customers can have a significant impact on sales, as it is more expensive to acquire new customers than to retain existing ones.

How to remove unwarranted product reviews on Amazon?

Here you can review the Amazon Community Guidelines:

https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=201929730

If you believe that the review violates them, go into “Contact us” – “Products and inventory” and “Product reviews”.

Here you can submit a removal request which will take a few days to get reviewed.

Conclusion

Negative product reviews can have a significant impact on product sales. They can decrease trust, reduce sales, damage a brand’s reputation, increase returns, and lead to the loss of customers. To minimize the impact of negative comments on sales, businesses should focus on providing high-quality products and excellent customer service. Additionally, businesses should take negative feedback seriously and use it as an opportunity to improve their products and processes.

In case that you are a seller, who is worried about his Amazon business or you already received the dreaded deactivation notice, feel free to subscribe to my OnlyFans page at www.onlyfans.com/kikaangelic, where I will assist you for $24.99 per month.

Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):

Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

Continue Reading
Advertisement

Trending