To optimize your Amazon FBA business, it’s important to understand the FBA Capacity Manager and how it can help you handle your inventory. The FBA Capacity Manager allows you to request additional storage capacity for products you expect to be popular with customers. This tool ensures you have enough inventory space without exceeding your FBA capacity limits.
FBA capacity limits are restrictions Amazon sets on how much inventory sellers can store at fulfillment centers. These limits are measured in cubic feet and are determined by factors like your Inventory Performance Index (IPI) score, historical sales volume, product seasonality, and available capacity at fulfillment centers. Each storage type has a separate monthly capacity limit, and individual selling accounts are granted a fixed limit of 15 cubic feet.
When Amazon identifies shipment problems or repeated issues related to an FNSKU or ASIN, they provide coaching to help you understand and correct the problem. This service can play a vital role in maintaining high-quality standards and avoiding potential penalties that could impede your business growth on the platform.
Amazon’s Aged Inventory Surcharge Fee (ex long-term storage fee) is a cost charged to sellers with inventory stored for more than 181 days. Between 181 and 270 days, there are some exceptions for items listed under clothing, shoes, bags, jewelry, and watches. This fee is assessed in addition to the monthly inventory storage fees, with increased granularity and magnitude for inventory stored between 271 and 365 days.
The Amazon Rental Book Service Fee is charged at a fixed rate for every book rented. Amazon collects the fee at the time of shipping the customer rental order. The Rental Book Service Fee allows sellers to participate in Amazon’s growing textbook rental market, which in turn helps generate more revenue for sellers.
The Amazon Lithium Batteries Fee is a specific charge when selling products on Amazon, including lithium batteries, either as standalone items or within the product. This fee is applied per unit and includes all lithium batteries within a product. This charge occurs only when a customer’s order is shipped.
The closing fees depend on the product category the item is sold under. To better understand these fees, let’s consider an example. If you are an Amazon seller who sells Video Games, you will be charged a closing fee for each Game you sell. This fee comes in addition to other fees, such as referral fees, shipping costs, and monthly account subscription fees if you have a professional account.
The per-item selling fee is applied to your account when the customer’s order is shipped. This fee structure ensures that you only pay for what you sell.
If you initially choose the Professional selling plan but wish to switch to an Individual selling plan, you can downgrade anytime to benefit from the per-item selling fee. However, downgrading may result in changes to your payment cycle.