Long term FBA Storage Fees

[user3657]

Not stealth related but I was going to get hit with 150$ in long term FBA storage fees, so I figured id just create a removal order and resend the inventory since that saves me more then half the costs.

I just want to make sure this is ok to do?

[jeffweico]

Are you sure? Amazon charges you to send your inventory back. That is one of the big reasons I won't use FBA (I thought of sending a few thousand books, but if the account was closed down for any reason, getting them back would have cost me a fortune).

It just does not make sense to me that it would be cheaper to pay Amazon's fee to send it back and then pay to re-ship the items to Amazon. Also, I cannot think they will approve of your strategy since it will cost them more to process this outgoing and incoming again.

Maybe with some FBA experience will chime in???

[jeffweico]

I just checked Amazon's site and it costs 50 cents per item to have them shipped back to you. This supposedly INCLUDES the shipping charges, but that somehow does not seem right. Maybe they do it to encourage people to take a risk?

But, in my case it still would not make sense. To get back 10,000 books would cost me $5,000.

[user3657]

Originally Posted by jeffweico

I just checked Amazon's site and it costs 50 cents per item to have them shipped back to you. This supposedly INCLUDES the shipping charges, but that somehow does not seem right. Maybe they do it to encourage people to take a risk?

But, in my case it still would not make sense. To get back 10,000 books would cost me $5,000.

Right, have you calculated the long term storage fees on those books?

Its much more cost effective doing the removal and resending, otherwise I would not have done it

Im just wondering if I should ease sending the items back or what.

[MICKY H]

user3657, I don't think your problem is long term storage fees but your stock control. Why send so much stock if its not selling. Keep feeding amazon with stock rather than one big shipment, lot cheaper overall.

Jeff, why also send 10,000 books if your already working out the return fees. Think positive that your goods will sell and only send a 1000 books. FBA sells 10 times faster than merchant fulfilment, its just getting the prices right, and you only have to be the cheapest FBA seller so you are getting more cash for your items anyway.

[user3657]

I guess my plan is to store them in storage for a month or so till the season picks back up, then ill go head and send them back in.