Amazon's fee adjustments can have a significant impact on sellers' profitability, making it crucial to stay informed and adapt strategies accordingly. Here's a breakdown of the storage fee changes for 2024 and some ideas to mitigate the fee increases.
Amazon charges monthly inventory storage fees based on the space your inventory occupies in fulfillment centers. Starting April 1, 2024, off-peak monthly inventory storage fees for standard-size products will decrease by $0.09 per cubic foot (January-September). This reduction aims to alleviate some of the financial burden on sellers.
Mitigation Strategies:
Starting April 1, 2024, Amazon will introduce more granular fee tiers to the storage utilization surcharge, applying the fee to Professional sellers with a storage utilization ratio above 22 weeks. Additionally, inventory aged between 0 and 30 days will be excluded from the surcharge. These changes aim to incentivize efficient inventory management.
Mitigation Strategies:
Starting February 15, 2024, Amazon will increase the aged inventory surcharge for inventory stored between 271 to 365 days. Surcharges for inventory stored between 181 to 270 days and inventory stored 365 days or more will remain unchanged. This adjustment aims to incentivize sellers to manage inventory turnover effectively.
Mitigation Strategies:
If you want to learn more about how to mitigate Amazon’s storage fee increases, don’t hesitate to check out our Top 10 tricks to decrease your Amazon monthly storage fees and our checklist to avoid Amazon’s long-term storage costs.
By understanding these changes and implementing effective mitigation strategies, you can successfully navigate Amazon's 2024 storage fee adjustments and maintain your store’s profitability. Check out how 3fin can help you implement mitigation strategies to make sure you keep your storage costs under control this year. You can book a demo to see 3fin in action.