Over the past two days, sellers have received emails from Amazon reminding them that Amazon is about to levy a warehouse utilization surcharge starting from April!

This utilization surcharge, as the name suggests, is a fee for sellers with poor warehouse turnover. According to the official algorithm, warehouse utilization=average daily inventory over the past 13 weeks ÷ average daily delivery volume,

For example, in the past 13 weeks, the average daily inventory of the seller was 1000 units, and the average daily sales were 20 units. The utilization rate was calculated to be 50 days, which is around 7 weeks. After calculation, everyone can compare the official table to determine which level they belong to and how much additional fees may be incurred.

For sellers with a warehouse utilization rate of less than 26 weeks, Amazon will not charge this additional fee. For sellers with a warehouse utilization rate of more than 26 weeks but less than 39 weeks, an additional $0.69 per cubic foot will be charged on top of the original monthly storage fee. For sellers with a warehouse utilization rate of more than 39 weeks, an additional $0.94 will be charged. From the above figure, we can see that this additional fee is very, very terrifying, almost as expensive as the normal monthly storage fee. Over 39 weeks, this additional fee is even more expensive than the storage fee! Equivalent to if the seller's turnover is not good, they may be charged double the storage fee!

How much is everyone's warehouse utilization rate? Let's vote and see what level of warehouse utilization rate you have among sellers.

If the utilization rate is not ideal, the current work is to focus on optimizing redundant inventory. It is no longer the case to wait for a year to collect long-term storage fees. If the new product inventory is unsold, it will also bring multiple storage costs if it is not fully sold for a year. This is Amazon forcing sellers to quickly abandon underperforming products and reduce inventory.

In addition, the long-term storage fee has now been renamed as the surcharge for over aged storage capacity, and the charging stage has also undergone significant changes.

Surcharge for over aged storage capacity will be added on April 15th

Previously, the long-term storage fee was charged based on inventory stored for more than 3 quarters. Now it has been changed to an additional fee for over aged storage capacity, which will start charging from 180 days, which is 6 months after storage. As long as it exceeds these 6 months, the over aged storage fee will gradually increase every month thereafter.

This fee replaces the original long-term storage fee, effective from April 15th. The utilization surcharge and overage surcharge are both for the same purpose, allowing sellers to put more effort into FBA warehouse turnover. For redundant and unsold inventory, it is necessary to decisively "cut off" and be more cautious during peak season stocking