Thursday, January 14, 2016

Amazon Long Term Storage Fees - Make a Plan



LTS Fees - START PLANNING NOW

February 15th is the cut-off for Long Term Storage Fees on Amazon (fees for items that have been in the warehouse for longer than 6 months), so you need to start planning as far as what you're going to do with the product that is subject to fees.

I take this on an item by item basis - sometimes I have items that I have no problem paying the fees on - usually LTH (long term hold) items with high ROIs. For everything else you'll either want to sell them quickly, have them sent back to you or dispose of them. You can move a lot of the inventory by using Sellbrite or JoeLister to cross market your Amazon items on eBay. Another strategy that is often used is to drop the prices ridiculously low to quickly move the inventory out - even in some cases where you might be breaking even or losing money, it may net you more cash back than any other options - I like to think of it as getting as much money back as I can quickly so I can reinvest it. You win some you lose some - it's a strategy used by all businesses. 

To see your items, first click on Manage Inventory in Seller Central. Then look across the top of the page and click on the link to Inventory Dashboard. Now click on the link that says Manage Excess Inventory. This will bring up a report that shows all you inventory and how long it has been in storage.

For future reference - use Google Calendar to set this date (and August 15th) on repeat for each year. I also set a date a month or two in advance to start reviewing the inventory subject to fees so I can plan accordingly.

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