There’s no question importers and other direct-to-consumer companies can reap major benefits selling on Amazon. It’s smart business. But what if not all your products are swift sellers? If you’re a savvy buyer yourself, you can score great deals for pennies on the dollar. You know that the inventory will move, even if it takes a while.
But if that “while” is more than 12 months, Amazon’s long term storage (LTS) fees can be a killer. Yes, the company recently did away with additional LTS fees for inventory in storage for 6-12 months, but if your products exceed the 365-day period, hefty additional storage fees still apply. It adds up fast at that point, directly reducing your margins. Not only that, languishing inventory can wreak havoc on your Amazon seller ranking, damaging your ability to reach customers.
For large Amazon sellers, it is far more cost-effective to remove slower-moving inventory from Amazon, store it off-site, and then send it back in to Amazon as needed for ongoing sales or peak periods. Our warehouse is conveniently located in Dover, Delaware.
The USA pricing structure follows the same format as Amazon’s, so you can easily compare and see your savings. Compare cost per item on receiving and fulfillment fees, and compare cost per square foot on storage. When you do, it’s obvious that the USA solution is most valuable for large Amazon sellers — companies with larger size products, fewer SKUs, and high volumes. It is not as cost-effective if your inventory consists of lots of SKUs but small volumes of each one.
You will also see a better result the longer you leave inventory at our facility. Yes, this means you are not selling that product, but if you have to “not sell product” somewhere, it is less expensive with us.
Your strong seller ranking on Amazon is a valuable business asset. When you take advantage of off-site LTS at USA, you eliminate the costly risk of losing that ranking and having your accounts put on hold.
Once you’re set up with USA, you can even order new SKUs directly into our warehouse for storage, instead of sending inventory to Amazon first. That’s more efficient as well as more cost-effective.
Other companies are already taking advantage of this alternative. You can, too. We’re ready whenever you are. Thanks to our standard pricing, you can quickly compare costs, then submit your removal order. Right away, you’re off the hook for additional charges from Amazon, and we’re poised to receive your goods whenever Amazon sends them over.
At USA Fulfillment, you are never “just another warehouse customer.” We treat every customer with the same friendly, helpful, professionalism, backed by more than 35 years of experience. We understand what’s most important to you, and we are always looking for ways to help you manage the fulfillment side of your business efficiently and profitably. We are your partner.
Here, we know there are many solid reasons to sell your products on Amazon, but the last thing you want is to incur higher fees, or risk reduction in your Amazon seller ranking. For large sellers with long term storage needs, warehousing at USA Fulfillment makes the most sense.
You can keep searching for those great deals – opportunities to purchase goods at far below the usual cost – confident that you can store large volumes over many months and still show a nice profit when units sell. Give us a call.
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