AMAZON FBA: LTSF VS ISF

in #life7 years ago

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Ever got confused with LTSF(Long-Term Storage Fees) and ISF(Inventory Storage Fees)?
I know I certainly did. As a seller on Amazon FBA there are all sorts of fees, but today I'll be talking about LTSF and ISF.

Iventory Storage Fees (ISF)

FBA ISF are the monthly storage fees that is charged between the 7th to 15th of every month. ISF charges varies depending the sizes of your units. For more information, look at the picture provided or click on the link and scroll to "monthly inventory storage fees" : https://sellercentral.amazon.com/gp/help/201411300?ref=ag_201411300_shel_pymtvtrans

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ABOUT Long-Term Storage Fees (LTSF)

We'll go over about LTSF, where to go and how to read, and what could be the possible way for you to resolve LTSF charges, in these very simple steps.
LTSF initiates twice a year, every year, on February 15th and August 15th. LTSF only affects products that have been in inventory for 6 months and more, with that being said, any units in inventory under 6 months is of NO CHARGE.

  • 0-6 months ~ free of charge
  • 6-12 months ~ $11.25 per cubic foot
  • 12 - more months ~ $22.50 per cubic foot

So to all Amazon Sellers, be aware of these months and especially keep up-to-date in your inventory. Clink on the link provided to receive more information about FBA Long-term storage fees: https://sellercentral.amazon.com/gp/help/help.html/?itemID=200684750&ref_=xx_200684750_a_r0_cont_sgsearch

Where to go and How to read

Talking about inventory, let's see where to go. If you were to go to your home page and (1) click the "View Inventory Dashboard" in the Inventory Planning box as shown below.
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The link will take you to your inventory Dashboard and at the top of the site you'll see the tabs starting with "Dashboard", "Restock Inventory", "Manage Excess Inventory", and "Inventory Age" . (2) Click on "Inventory Age"

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After the Inventory Age tab, you'll see a column indicating the Est LTSF for products in your inventory of 6 months and more. To read the table, Place your cursor or mouse over the blue highlighted price in the product row and Est LTSF Column, that you want to see. The box indicating the charges will pop up and gives you information on the charges, in a period of 6 months per units available. For example:
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If you want to stay ahead of your game, be up-to-date and dedicated or else you'll be paying a large fee.

RESOLUTION

Now, the sad truth here is...YOU'LL HAVE TO PAY EITHER WAY! There is no way out of not paying amazon. With this in mind, Amazon truly is a genius. Put a charge on everything and they're good to go. so what's the best way to resolve this?

You have to consider the amount of units that you'd like to remove. I talked with Amazon FBA Rockstars! which is a Facebook group and the only information I've received from them is, "You can have items shipped back to you for 50 cents a unit, or have Amazon take possession for 15 cents a unit." You'll still have to pay them to ship the items back to you or dispose of the units for .15 cents each just to avoid a possible higher payment of LTSF. With all these information, it really depends on the units you have and calculate which route is the cheapest way for you to go. (1)Pay 50 cents a unit to be shipped back to you, (2) pay 15 cents for amazon to dispose of it, and (3) received LTSF. Another method is "Liquidation" but for more information, watch the video below.

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Now that you know, Good luck to you all and thanks for stopping by. If this information was helpful please give me a vote and comment down below.