In 2020, Amazon made various changes to Fulfillment by Amazon (FBA). Read on for more information on referral, removal and long-term storage fees, as well as Amazon’s FBA New Selection program.
How do Amazon storage fees work?
You need to pay a storage fee for each inventory unit that you store in an Amazon warehouse.
Whatever type of FBA you use, you’ll be storing your inventory in at least one Amazon warehouse in Europe. This means that you’ll pay storage fees whether you use Pan-EU FBA, Amazon’s CE Program, Amazon’s European Fulfillment Network or Multi-Country Inventory.
Warehouse storage fees are based on:
- Calendar month
- Lower from January-September, higher from October-December
- Your average daily volume
- The warehouse space your inventory takes up
- The size of your inventory units
- Calculated once they’re packaged up and ready to ship to customers
Long-term storage fees
You can find out more about FBA packaging requirements here.
Standard monthly storage fees are charged between the 7-15 of the month. You pay fees for the month just gone, rather than for the month coming.
In the UK, you pay these fees per cubic foot per month. In other European countries, you pay per cubic meter per month.
For more information, take a look at Amazon’s full breakdown here.
Amazon also brought in changes to FBA removal order fees. This applies to local and cross-border removal orders.
Now, removal orders are charged based on the size and weight of the item being removed. However, rates for inventory disposal orders have stayed the same.
In addition, Amazon still charges different rates for local and cross-border removals. However, fees for items fulfilled using Pan-EU FBA have changed. These fees are now charged at the local rate, if your return destination is in the UK, Germany, France, Italy or Spain.
You can find more information here.
What are long-term inventory storage fees?
If you store your inventory units in Amazon warehouses for more than 365 days, you’ll need to pay long-term inventory storage fees.
This long-term fee will be added to your standard monthly fee. However, you won't be charged a long-term storage fee if you request to remove your inventory units before your next monthly inventory assessment.
In 2019, there was a key change to long-term inventory storage fees. As a result, these fees are no longer charged for inventory units stored for 181-365 days in Amazon fulfillment centers across the UK, Germany, France, Italy and Spain.
In 2020, there were further updates. Amazon removed the minimum long-term storage fee (€0,10 or £0.10 per month) for non-media items stored in Amazon warehouses for over 365 days.
Your per cubic foot or per cubic meter long-term storage fee will stay the same. Also, the minimum long-term inventory storage fee still applies to media items you store for over 365 days.
Amazon FBA New Selection program
Amazon’s FBA New Selection program started on April 1, 2020. Sellers who join the FBA New Selection program can access:
- Free monthly storage
- Free removals
- Free returns processing
This applies to all your products with eligible Amazon Standard Identification Numbers (ASINs) that are new to FBA across all Amazon’s European marketplaces.
If you’re a seller who’s new to FBA, you can also qualify for an £80 discount on Amazon Partnered Carrier shipping.
If you want to join the FBA New Selection program, you’ll need to enrol in the program. Once you’ve enrolled, Amazon will decide whether you and your inventory qualifies. You can find all the details you need here.