Selling through Amazon FBA

[newbie77]

11 hours ago, Bold-Arrow said:

Yes, starting 1/1/18 they collect and transmit the sale tax to the state of Washington . 

i wish they do that to the stupid MA, RI and other states as well. that way its not a headache with other stuffs.

[Bold-Arrow]

On 2/23/2018 at 11:10 AM, Bold-Arrow said:

Yes, starting 1/1/18 they collect and transmit the sale tax to the state of Washington . 

https://sellercentral.amazon.com/gp/help/help.html/?itemID=G7VYHGJ8ZT2M58CP

 

[landphieran]

Brutal.... Definitely exiting some markets with these changes...

Changes for all FBA sellers:

• Monthly Inventory Storage Fees: Starting April 1, 2018, monthly inventory storage fees will be increased by $0.05 per cubic foot for standard-size and oversize items. This change will first be reflected in May 2018 charges for storage that occurs in April 2018.  See the table below and Monthly Inventory Storage Fees for more details.
• Long-Term Storage Fees: Starting September 15, 2018, long-term storage fees will be adjusted and the assessment dates will be changed from a semi-annual basis to a monthly basis. See the table below and Long-Term Storage Fees for more details.
• Minimum Long-Term Storage Fees: On August 15, 2018, we will introduce a minimum charge of $0.50 per unit per month for items in fulfillment centers for 365 days or more. The greater of the applicable total long-term storage fee or minimum long-term storage fee will be charged. See the table below and Minimum Long-Term Storage Fees for more details.

[Bold-Arrow]

Also :

 

Changes for sellers with a Professional selling plan: Through the inventory management tools and FBA storage fee structure, our goal is to encourage efficient inventory management that benefits you, customers, and Amazon. While we continue to invest in our fulfillment network to better serve your business, at times we experience physical constraints on inventory capacity during key shopping seasons. To help minimize these constraints, we want to continue to allow the most efficiently managed inventory to flow through the network, while limiting less efficiently managed inventory. The Inventory Performance Index is our first step in setting a bar on inventory performance. Beginning July 1, 2018, we may limit access to storage for sellers with an Inventory Performance Index below 350. Your current Inventory Performance Index score is XXX, which indicates you are doing an excellent job managing your FBA inventory. Your score is updated weekly based on your ongoing inventory management. Sellers who maintain an index score of 350 or greater will have unlimited storage for standard‑size and oversize items (monthly storage fees and long-term storage fees still apply). See the table below and FBA Storage Limits Changes for more details.

[ravenb99]

least Ash should be happy,  was almost criminal how cheap it was to sell on the platform before...

[exciter1]

9 minutes ago, Bold-Arrow said:

Also :

 

Changes for sellers with a Professional selling plan: Through the inventory management tools and FBA storage fee structure, our goal is to encourage efficient inventory management that benefits you, customers, and Amazon. While we continue to invest in our fulfillment network to better serve your business, at times we experience physical constraints on inventory capacity during key shopping seasons. To help minimize these constraints, we want to continue to allow the most efficiently managed inventory to flow through the network, while limiting less efficiently managed inventory. The Inventory Performance Index is our first step in setting a bar on inventory performance. Beginning July 1, 2018, we may limit access to storage for sellers with an Inventory Performance Index below 350. Your current Inventory Performance Index score is XXX, which indicates you are doing an excellent job managing your FBA inventory. Your score is updated weekly based on your ongoing inventory management. Sellers who maintain an index score of 350 or greater will have unlimited storage for standard‑size and oversize items (monthly storage fees and long-term storage fees still apply). See the table below and FBA Storage Limits Changes for more details.

I'm ready

[exciter1]

4 minutes ago, ravenb99 said:

least Ash should be happy,  was almost criminal how cheap it was to sell on the platform before...

It's easy when you sell your inventory before it's even checked in.

[Phil B]

7 minutes ago, exciter1 said:

I'm ready
 

I wasn't far off with my Sears shirt post I see ....

[exciter1]

2 minutes ago, Phil B said:

7 minutes ago, exciter1 said:

I'm ready
 

I wasn't far off with my Sears shirt post I see ....

Different outfits for different occasions.

[Migration]

Guess that explains all the "you have excess inventory" and "increase product sell through rate by selling at a loss" emails of late.

But at least I have UNLIMITED storage now!!!!!!!!!

 

[asharerin]

We saw the writing on the wall a long time ago and changed to a 99% replenishable model and a just in time inventory model. We will have unlimited storage under the new policy but we strive to sell through in 7 days what we send in. We still have a mountain of 2013-2014 retired sets to sell thru but once those are done that will be the end of slow moving asins for us. Still plan to exit to fully passive income investments within 5 years. Amazon is moving to have manufacturers sell directly with the transparency program or vendor express. IMO 3p as we know it today on the amazon platform is coming to an end. As internet sales grow and physical sales shrink the days of wholesale and distributors are coming to an end for big brands. 

7 minutes ago, exciter1 said:

It's easy when you sell your inventory before it's even checked in.

It gets checked in but never out of backordered before it sells ?

 

 

[Bold-Arrow]

PA is second on the list for auto sales tax recoupment : https://sellercentral.amazon.com/gp/help/G7VYHGJ8ZT2M58CP

 

[newbie77]

2 hours ago, Bold-Arrow said:

Also :

 

Changes for sellers with a Professional selling plan: Through the inventory management tools and FBA storage fee structure, our goal is to encourage efficient inventory management that benefits you, customers, and Amazon. While we continue to invest in our fulfillment network to better serve your business, at times we experience physical constraints on inventory capacity during key shopping seasons. To help minimize these constraints, we want to continue to allow the most efficiently managed inventory to flow through the network, while limiting less efficiently managed inventory. The Inventory Performance Index is our first step in setting a bar on inventory performance. Beginning July 1, 2018, we may limit access to storage for sellers with an Inventory Performance Index below 350. Your current Inventory Performance Index score is XXX, which indicates you are doing an excellent job managing your FBA inventory. Your score is updated weekly based on your ongoing inventory management. Sellers who maintain an index score of 350 or greater will have unlimited storage for standard‑size and oversize items (monthly storage fees and long-term storage fees still apply). See the table below and FBA Storage Limits Changes for more details.

All you need is 351 and higher on scale of 1000. Common that’s not even passing grade in us 35% at least make that 65% or 70% and make it free storage and everything.  

I guess it matters to people who were using FC as their warehouse but for others it’s no different 

[Bold-Arrow]

1 minute ago, newbie77 said:

All you need is 351 and higher on scale of 1000. Common that’s not even passing grade in us 35% at least make that 65% or 70% and make it free storage and everything.  

I guess it matters to people who were using FC as their warehouse but for others it’s no different 

350 is not the issue . i can guarantee that number will only go up... I posted few months ago when that metric first appears that it will most likely be the start of something. and as Amazon said " our first step" 

[exciter1]

5 minutes ago, Bold-Arrow said:

350 is not the issue . i can guarantee that number will only go up... I posted few months ago when that metric first appears that it will most likely be the start of something. and as Amazon said " our first step" 

Won't this only increase the load on their Check-In staff at the distribution centers, especially during peak periods?  I foresee more delays and mistakes if they push everyone toward a JIT model.  I can see late November as being pure chaos at their warehouses.

[Bold-Arrow]

1 minute ago, exciter1 said:

Won't this only increase the load on their Check-In staff at the distribution centers, especially during peak periods?  I foresee more delays and mistakes if they push everyone toward a JIT model.  I can see late November as being pure chaos at their warehouses.

their end goal is not to be a storage facility. stuff checks in , better be gone in 30 days or less. rinse , repeat. 

[newbie77]

13 minutes ago, Bold-Arrow said:

350 is not the issue . i can guarantee that number will only go up... I posted few months ago when that metric first appears that it will most likely be the start of something. and as Amazon said " our first step" 

Sure. They will eventually make it 80%  ? I seriously doubt that. Every one looks at amazon 

What it means is amazon has realized that the mode of expansion is done I.e. they have already penetrated most and ecommerce in us has matured. Now they Are on optimization phase. 

As long as one is not using Amazon as warehouse I.e.store your entire inventory then those individuals will be fine. 

If you closely read financial statement that amazon’s online sales increase was roughly 11% (10bln)on 90bln of 2016 While they made 33bln [increase of 11bln from 22bln of 2016] from 3rd party sellers.

so to play smokes and screen they need to. Grow revenue without investment. For them 3rd party sellers account for much larger portion of profit. So they are trying to maximize that.

these are purely my thought and sentiments and suppose to be taken with grain of salt or spice of your choice. Should not be taken as absolutes

[asharerin]

8 minutes ago, exciter1 said:

Won't this only increase the load on their Check-In staff at the distribution centers, especially during peak periods?  I foresee more delays and mistakes if they push everyone toward a JIT model.  I can see late November as being pure chaos at their warehouses.

This is what happened last 4th quarter. I think their thinking is sellers who don't sell much throughout the year will probably have a score below 350 (mostly due to out of stocks and forgotten about active items). If below 350 they get limited to what they can send in, and I am sure they will have an algorithm steer their shipments to historically slower warehouses. If you sell frequently and sell thru fast you are unlimited and will get your stuff to go to the historically faster FCs. 

From Amazon today:

" we want to continue to allow the most efficiently managed inventory to flow through the network, while limiting less efficiently managed inventory."

BA is right that score will continue to rise over the years until Amazon has the operation where it wants it. 

This is going to hurt long tail sellers the most (books, media, shoes, clothing, slow selling collectibles etc). MF may be the better choice for those pending some number crunching.

At the end of the day Amazon has finite FBA capacity and they want to keep that capacity for items that buyers want. No point having truckloads of hot selling major brand items in the parking lot while cheap chinese private label crap that nobody wants is getting checked in and received. This is also going to keep prices down on those hot selling items as there should not be as many out of stocks if the network is running more efficiently.

[exciter1]

their end goal is not to be a storage facility. stuff checks in , better be gone in 30 days or less. rinse , repeat. 

Regardless, their incoming volume will be insane during certain periods.

[Phil B]

Regardless, their incoming volume will be insane during certain periods.

The Baltimore FC already trialed their new solution for this last Christmas

[Migration]

They’ll be pushing FBA from your own facility shortly.

[exciter1]

26 minutes ago, Migration said:

They’ll be pushing FBA from your own facility shortly.

Send me your inventory folks, the wife wanted a vacation anyway.

[Bold-Arrow]

2 minutes ago, exciter1 said:

Send me your inventory folks, the wife wanted a vacation anyway.

en route... sorry for the delay, trying to blend in with your locals took longer than expected. 

 

 

[Darth_Raichu]

3 hours ago, exciter1 said:

Regardless, their incoming volume will be insane during certain periods.

So what? Your items will be scanned and received once the rush period is over . 

Amazon will still profit from your inventory

 

[exciter1]

Commingled?
No FBA sticker, but it has a Walmart sticker?