Everything you need to know about Amazon expanding FBA storage scheme

Amazon has expanded and enhanced its new FBA New Selection programme to make it more attractive to use the programme.

In March, Amazon began to offer free monthly storage and removals for FBA users, which has now been increased to allow the number of new ASINs that can qualify to 500 per Seller, per calendar year. They have also added limited-time free return processing to some product categories.

Below is the full range of new measures Amazon has introduced:

Free monthly storage and free removals

Sellers enrolled in the FBA New Selection programme can take advantage of the fee waivers on up to 500 new-to-FBA parent ASINs that they create. All eligible ASINs qualify for free monthly storage for the first 50 units sent to Amazon fulfilment centres for 90 days after the first unit is received. You can remove any of those first 50 units within 180 days after the first inventory-received date with no removal fees.

Free return processing for four product categories

For Clothing & Accessories, Shoes & Bags, Jewellery and Watches, FBA will waive return processing fees for up to 50 units of each ASIN that customers return to the fulfilment centre within 120 days of the first inventory-received date.

Discount on delivery

Sellers who are new to FBA can get their first £80 in inbound transportation charges waived if they use the Amazon Partnered Carrier programme. ASINs do not have to be new to FBA to get this benefit.

To be eligible for the New Selection programme, patent ASINs must be:

* New to FBA

* Received at the fulfilment centre after April 1, 2020

* Standard size

* In new condition and not in a Media category

These measures are developments to the March details announced by Amazon, the full details of which can be found here: https://sellercentral-europe.amazon.com/gp/help/external/GWHQRT98SAZC29VQ.

So should these new measures mean that as an Amazon Seller, you should rush to sign up to the programme? Thompson and Holt managing partner Craig Gedey has urged caution.

Gedey said: “Taken purely at face value, these new introductions add definite value to the FBA scheme, which already had its benefits.

“But there are a number of factors to be taken into account in the current climate. FBA shut down to incoming shipments for a month, and pushed out delivery dates for products already on FBA for a month, due to the huge number of essential items they needed to ship at the start of the coronavirus pandemic.

“Being overly reliant on FBA is not something that we would recommend at Thompson and Holt until the marketplace becomes more stable. Keeping some of your stock under your own control is certainly advisable until we can be certain there will be no more panic buying that creates logistical issues elsewhere.

“It means you will be able to continue selling even if FBA faces the kind of changes it had to make at the start of the pandemic again. Once that has happened, you’ll be able to reassess and weigh up whether these scheme will be beneficial to your company in the long term, without the threat of disruption again.”

Want to know more about Amazon FBA?

Click here for a comprehensive breakdown of the great Amazon service.

Amazon Seller Account Suspension?

Amazon Suspension

If you have found yourself suspended while selling on Amazon, contact Thompson and Holt for a free LiveChat to get your Amazon Seller business back online as quickly as possible.

Thompson and Holt are also offering a free months trial of their Monitor and Protect service to help sellers prevent a suspension of ASINs or an their account during the COVID pandemic, more information on how to protect your Amazon seller account from a suspension can be found here.