Selling through Amazon FBA

[Bold-Arrow]

Should have been dec 8th

[legopocalypse]

Headlines

Fulfillment by Amazon U.S. Fee Changes Begin February 18, 2015

Dec 3, 2014

 

Fulfillment by Amazon (FBA) will be adjusting its rates in the U.S. to reflect the rising costs of fulfillment, transportation, and customer service and to align with announced changes to industry standards. These changes will take effect beginning February 18, 2015, after the holiday selling season.

Here is a summary of the upcoming fee changes:

 

• Fulfillment Fees: Effective February 18, 2015, Pick & Pack and Weight Handling Fees will increase across all product sizes and weights.
• Dimensional Weight threshold: Effective February 18, 2015, for Large Standard-Size Non-Media units weighing more than 1 lb. and all Small, Medium, and Large Oversize units, we will use Dimensional Weight to determine both Fulfillment Fees and fees for the optional Inventory Placement Service if the Dimensional Weight is greater than the unit weight.
• Monthly Inventory Storage Fee: For inventory storage beginning March 1, 2015, the monthly fee will vary between Standard-Size and Oversize units. Rates for storing Standard-Size units will increase, and rates for storing Oversize units will decrease. This change will first be reflected in April charges for storage in March.
• Long-Term Storage Fee: This fee is currently assessed semi-annually on February 15 and August 15 on units that have been in Amazon fulfillment centers for 12 months or more. On August 15, 2015, units that have been in Amazon fulfillment centers between 6 and 12 months also will be subject to the Long-Term Storage Fee, at a rate of $11.25 per cubic foot. Units that have been in fulfillment centers for 12 months or more will continue to incur the Long-Term Storage Fee of $22.50 per cubic foot.

Fees for Order Handling, Zero-Fee Fulfillment, Multi-Channel Fulfillment, and FBA Prep Services are not affected by these changes and will continue to apply where applicable.

For more information on the 2015 FBA fee changes, including full rate cards, definitions, and examples, please visit http://www.amazon.com/fba-fee-changes.

[grackleflint]

This was to be expected once FedEx/UPS announced they were going to dimensional weight on all packages. The FBA fulfillment fee seems to going up substantially for medium size/weight packages.

 

See Amazon's example for Glass Jars where the FBA fulfillment will increase from $5.78 to $7.64 and the Storage bin going from $7.02 to $9.94. 

 

For a LEGO example, a 6857 Funhouse set that currently appears to have a shipment weight of 2 lbs seems like it will go up to at least 5 lbs with dimensional weight shipping, assuming they use the smallest 16x12x4 box to ship it in. 

 

Along with Inventory Placement Service fees increasing for standard size, inbound shipping fee increases for dimensional weight, and storage fees also increasing for standard size packages while going down for oversize, it appears like it will be less profitable to sell smalls/mediums on Amazon through FBA unless all sellers are going to substantially increase their prices.

Edited December 4, 2014 by grackleflint

[dubzero]

That's a pass through cost. Shipping is going up for everyone. Some sellers will be willing to eat it, but the market should adjust accordingly shortly after it goes live.

[exciter1]

That's a pass through cost. Shipping is going up for everyone. Some sellers will be willing to eat it, but the market should adjust accordingly shortly after it goes live.

 

Shipping is going up, gas prices are going down. Nuts!  If you haven't checked recently, long distance flights have decreased in cost significantly the past 3 months.

[jmdt]

I'm selling FBA for the first time (this is my first week) and I just received my first payment from Amazon. A portion of what I should have received is deemed as an "unavailable balance." Is this normal practice or is there a claim pending?

[mykingdomforabrick]

Thanks..just to confirm ...I have to mail by 12/10 or it has to be there at Amazon by that date?

 

Sales are usually pretty strong in January as well - people have GC's and such.

 

Obviously use caution when it comes to pricing and specific holiday items.

[redcell]

 

Along with Inventory Placement Service fees increasing for standard size, inbound shipping fee increases for dimensional weight, and storage fees also increasing for standard size packages while going down for oversize, it appears like it will be less profitable to sell smalls/mediums on Amazon through FBA unless all sellers are going to substantially increase their prices.

 

Given the amount of price competition for FBA items this year, I don't think that it is likely to expect prices to rise significantly. 

[glucapg]

I'm selling FBA for the first time (this is my first week) and I just received my first payment from Amazon. A portion of what I should have received is deemed as an "unavailable balance." Is this normal practice or is there a claim pending?

No, normal, don't worry....they will Pay it in a couple of week

Sent from my XT1052 using Brickpicker mobile app

[Jackson]

Did anyone else get an email titled "Confirmation of inventory sale to Amazon.com"?

[Dbroncoboy]

Yes. They bought two first nights at 100 and a farm at 90

[mykingdomforabrick]

I'm repricing some of my high-ball items down tonight for the weekend.

 

On repricers -  anyone super fantastically happy with what they are using?

 

I've used appeagle and now bqool.   Appeagle was ok - not great.   Only updated once every hour which sucked.

Bqool has a horrible interface but seems to have better performance.

 

I'm considering having someone write a repricer custom instead.  I can't be the only one that feels like the offerings that are out there are not intelligent enough.

 

I'd love to see a repricer that actually took my quantity inventory into account while repricing.  As my inventory lowers price less aggressively.

Add sales velocity of course,  quantity of competitors stock would be a bonus although a pita to script I assume.

 

Mash that together and get a bit more of an intelligent repricing algorithm.

 

Best repricer you've used ?

[Dbroncoboy]

I'm repricing some of my high-ball items down tonight for the weekend.

 

On repricers -  anyone super fantastically happy with what they are using?

 

I've used appeagle and now bqool.   Appeagle was ok - not great.   Only updated once every hour which sucked.

Bqool has a horrible interface but seems to have better performance.

 

I'm considering having someone write a repricer custom instead.  I can't be the only one that feels like the offerings that are out there are not intelligent enough.

 

I'd love to see a repricer that actually took my quantity inventory into account while repricing.  As my inventory lowers price less aggressively.

Add sales velocity of course,  quantity of competitors stock would be a bonus although a pita to script I assume.

 

Mash that together and get a bit more of an intelligent repricing algorithm.

 

Best repricer you've used ?

 

I'm interested in this too.

[dubzero]

InventoryLab is working on one. I'm interested in checking it out but I've not dabbled in repricers yet.

[mykingdomforabrick]

InventoryLab is working on one. I'm interested in checking it out but I've not dabbled in repricers yet.

 

What's the biggest benefit you see using inventory lab?

 

I've considered switching to it several times but each time I hold off. 

My workflow isn't great at the moment, but I need to see that killer reason inventory saves me time or $ to adopt it.

Looks like one of those items once you switch to using you don't leave quickly.

 

Currently using Listlabel ship to print my product and box labels which works fairly quickly and well.

Load up inventory and shipments in the fba system itself.

 

What's the killer feature in IL that you love?

[dubzero]

What's the biggest benefit you see using inventory lab?

I've considered switching to it several times but each time I hold off.

My workflow isn't great at the moment, but I need to see that killer reason inventory saves me time or $ to adopt it.

Looks like one of those items once you switch to using you don't leave quickly.

Currently using Listlabel ship to print my product and box labels which works fairly quickly and well.

Load up inventory and shipments in the fba system itself.

What's the killer feature in IL that you love?

Just one?

It really simplifies the workflow! I like it that the shipments (called batches) are totally editable until you send them to the FBA shipment step. It gives you one click access to listing with competitors prices, CCC, Keepa, eBay, Prime sellers, and a book site (can't remember the name). Also lets you print labels like LLS does for your FBA labels. Backend accounting is SOLID. Really good ability to track individual COGS, inbound shipping, reimbursements, etc. It also tells you what FCs your stuff will go to as long as you close the batch on the same day you open it.

Scoutify app access is included too.

Definitely give it a 30 day trial and see if it works for you.

Totally worth the $50 a month.

[mykingdomforabrick]

I'll have to give it a whirl then.  Using Profit bandit but now that it's a monthly fee there is no benefit over scoutify.

More me not wanting to change my workflow then the monthly fee preventing me from going to IL.

[LegoManiacc]

Did anyone else get an email titled "Confirmation of inventory sale to Amazon.com"?

 

They took their sweet time, but finally got confirmation for the Farm and First Night. Just 1 of each unfortunately (or fortunately depending on what next week brings).

[Dbroncoboy]

How long till this loophole is closed?

Most recent amazon email

00GSN5BWA / LEGO Creator 31013 Red Thunder / 3 / $17.49

B00MJYDHHS / LEGO Minecraft Crafting Box / 2 / $149.99

B00MJYDDCW / LEGO Minecraft The Mine / 1 / $249.99

B0050R0XEG / LEGO Creator Volkswagen T1 Cam / 1 / $249.99

B00J4S6UYO / LEGO City Trains Cargo Train B / 1 / $299.99

[Bold-Arrow]

How long till this loophole is closed?

Most recent amazon email

00GSN5BWA / LEGO Creator 31013 Red Thunder / 3 / $17.49

B00MJYDHHS / LEGO Minecraft Crafting Box / 2 / $149.99

B00MJYDDCW / LEGO Minecraft The Mine / 1 / $249.99

B0050R0XEG / LEGO Creator Volkswagen T1 Cam / 1 / $249.99

B00J4S6UYO / LEGO City Trains Cargo Train B / 1 / $299.99

U got a second offer ?

[Dbroncoboy]

Yeah. Weird. T1 is still in stock. Kinda confused

[mlncs]

I have a couple of returns thru FBA for big sets.  Frustrating part is that the money is deducted first before they even receive the item back.  Has anyone here had experience with this process, how long it will take until we get back the inventory or Amazon reimburses.   How often does AMazon reimburse anyways?  I suspect that since the returns are for bigger sets, they must beat the hell out of the boxes in shipping.   Any advice would be appreciated.

[Jackson]

I have a couple of returns thru FBA for big sets.  Frustrating part is that the money is deducted first before they even receive the item back.  Has anyone here had experience with this process, how long it will take until we get back the inventory or Amazon reimburses.   How often does AMazon reimburse anyways?  I suspect that since the returns are for bigger sets, they must beat the hell out of the boxes in shipping.   Any advice would be appreciated.

 

If the buyer doesn't return the item, Amazon is supposed to automatically reimburse you in 45 days or something like that (I can't remember the exact number of days).  The fun part is that the "automatic" reimbursement doesn't always happen, so you have to bother Amazon seller support to get reimbursed.

[Bold-Arrow]

Like Jackson said, you will get your money back 45 days after date return was initiAted if costumer doesn't send it back. .

You will need to wait for costumer to return set to Amazon and they will deem whether it is sellable or not. If it is it goes back to your inventory and is available to sell again.

If it isn't then Amazon might reimburse you and take possession of the item or it might be deemed as damaged and goes back to your inventory as unfulfillable . ( depending on reason for return say damaged in transit v costumer damaged)

If it is unfulfillable then u can have Amazon either return it to you for a charge or destroy for a charge as well.

Since it is a big set u will def need to recall and asses. if foul play is suspected you will need to open a case ( I would open a case regardless if seals are broke, ect....)

If case is won or lost either build or sell on other venue or again on Amazon as used/collectible

I don't sell any big retired sets on Amazon due to their lax return policy . ( personal preference )

[grackleflint]

You should also keep track of a "sellable" return to make sure it goes back into your fulfillable inventory. I have had a return disappear (returned as sellable and never showed up as fulfillable again) so I had to contact Seller Support who reimbursed me.