Low inventory fee for FBA
Hello, it's me again with another complaint nail in the coffin for Handmade. FBA is not good for handmade sellers. There I said it. This whole new low inventory fee will now penalize sellers who can't keep a ton of items in stock.
For example, one of my listings wants 3 in stock of that listing...even though I currently have two in stock...one of which has been sitting in the warehouse for at least 3 months without selling. The algorithms are broken. If I was to send in the required minimum to not have a low inventory fee...then those items will sit for MONTHS if not years in the warehouse accumulating long term storage fees...until I get sick and tired and pay a recall fee.
Between the lost items, low sales, now if I have a good seller...I am penalized for it going out of stock? I don't have time to remake every listing that sells...especially if it was a listing that took 6 months to sell...I'm not that eager to remake it and send it back in because it might be another 6 months before it sells again.
FBA is not favorable at all to small time sellers.
Low inventory fee for FBA
Hello, it's me again with another complaint nail in the coffin for Handmade. FBA is not good for handmade sellers. There I said it. This whole new low inventory fee will now penalize sellers who can't keep a ton of items in stock.
For example, one of my listings wants 3 in stock of that listing...even though I currently have two in stock...one of which has been sitting in the warehouse for at least 3 months without selling. The algorithms are broken. If I was to send in the required minimum to not have a low inventory fee...then those items will sit for MONTHS if not years in the warehouse accumulating long term storage fees...until I get sick and tired and pay a recall fee.
Between the lost items, low sales, now if I have a good seller...I am penalized for it going out of stock? I don't have time to remake every listing that sells...especially if it was a listing that took 6 months to sell...I'm not that eager to remake it and send it back in because it might be another 6 months before it sells again.
FBA is not favorable at all to small time sellers.
17 respuestas
Seller_2azHBWt7FzGTG
@Seller_Gd8HNmQJSr4l8This is exactly why after I researched FBA and read the forum posts from those who use it, I did not opt in. Way too many negatives to even consider the very few positives.
Seller_Qp7D09NCRbW7u
That explanation of their low inventory fee is about as clear as mud. What a bunch of BS. I think handmade is about done here anyway. It's just no longer worth the hassle.
Seller_lnG1vEHPdDS1j
Essentially, the net effect will be the costs to consumers must rise as a result.
Two outcomes:
Fewer suppliers will be able to offer the competitive edge, initially having a lower cost advantage than those suppliers who cannot offer. Once supplier diversity decreases, the remaning contenders will raise their prices as supply drops.
Secondly, for the rest of the distinctive offers on the market who cannot meet the supply rates, they will simply raise prices to accomodate for the increase of fees on the backend.
End result - customers pay more.
Seller_mt2sthSIojhVQ
I agree that this is an issue. I am primarily a Christmas seller. Every Christmas I sell ornaments. Every January-March the algorithm tells me to send more in. Starting next year this is a guarantee that these products will be charged for being low inventory for the first quarter after Christmas. I will have to look into it, but maybe as a workaround flipping merchant fulfilled during the off season will work out.
My customers are already forcing my prices down this year while the cost to produce and to fulfill has gone up. It's a tricky sticky situation, without these new fees. It seems to me to be a way to exploit the issues that their algorithm already has with seasonal products.
If my daughter didn't have so many upcoming surgeries this year at Mayo, I would already be hitting the pavement to look for a more secure income. Right now all I can do is hope we will make enough this last little bit to get us through.
Seller_xOjrzfzAmBZik
The Amazon inventory forecasting for smaller selling items is not accurate at all. This may affect Handmade sellers more than Marketplace sellers. It may work fine in Handmade for consistent selling or higher quantity selling items. I am sure Amazon could fix this, but does not as it has been like this for a long time.
When I did FBA, I just ignored Amazon's inventory item level suggestions as they were not accurate at all for me.
Rose_Amazon
@Seller_Gd8HNmQJSr4l8
The low-inventory-level fee is not based on our restocking recommendations. Rather, it is based on actual inventory levels relative to historical sales. See the example “Products with low sales volume” on the Low-inventory-level fee page to learn more.
Rose_Amazon
Seller_xouAbPXPlUfbu
I defniltely don't agree with you that FBA is bad for HM sellers as I have been doing both FBA/FBM now for 6 years and adding FBA is what finally started making me money.
If you know how it works - AND - you keep one FBM and one FBA listing when your FBA sells out people find your seller fulfilled listing and things just keep on rolling.
My goal is to keep ALL of my fast moving items in stock at all times, but being a one woman show that isn't always possible - BUT - I do get them restocked as fast as I can and if for some reason it is going to be a long time before I can restock I flip it back to FBM.
It would help if you actually read the information related to this. That minimum level is not a "requriement" (not sure where you got that idea) it is a recomendation which you can use or ignore.
Your example is NOT what the fee is about - if you have product sitting there for 90-180 days that would NOT be something subject to this fee.
I didn't even know about this upcoming fee prior to this post - BUT - I went to the link Amz provided and seems perfectly sensible to me.
IE: If you are keeping LOW inventory levels on products that are SELLING decently, that is a problem and I can see why it would trigger an additional fee.
And once again, I totally disagaree with your parting comment.
FBA IS FAVORABLE TO SMALL TIME SELLERS>
Seller_Xm9ZXdbDd6NZw
I'm late to the discussion as I was locked out of the handmade forums. It's not as bad as I first thought, but is very bad for discontinued items and seasonal. Having been FBA for over 7 years I am nearly getting out of it. Not just this but less sales, unpredictable sales, more fees, more long term fees, plus all the returns and damaged/used/wrong item returns.
Seller_nKyeSPxRmseAq
FBA is no bueno. Between them damaging my items and sending them out anyways, leading to used sold as new complaints, and how sky high the return rate is on fba items. I swear some people only buy fba items so they can see them in person and return for free on our dime. Plus the fees? Nope. Hard pass.
Seller_gwzuNYC3ogYNo
My inventory on one item: 20
FBA: 18 of the 20 are over 365 days old, Long Term Fees Apply
Me: Removes 18 units, cost $17.46 in return fees
FBA: Your minimum inventory is 3, you have 2
Me: Okay, I will send one unit
FBA: You can't send one unit, you just recalled 18 units.
