Beware... I was just charged $5600 for a removal order
I have a product that came in pallets and Amazon requests us to send in certain amounts of inventory. It is very costly for me to continually re-palletize this product. It was much cheaper to send the whole pallet and pay the minimal storage fees.
Well, Amazon changed the rules again just like always. The amount they requested me to send in was now way too much and they began charging me storage fees, upwards of $600 per month.
By the time I caught onto these ridiculous charges, because they dock them from your payout, it was too late and I had been charged over $1800. So I decided that I should remove my inventory and look for a different fulfillment house. Previously it only cost me $400 to ship the inventory to Amazon. I figured that wost case it would cost $600 to remove it.
Well, it had been so long since I did a removal... They used to require you to approve the estimated charges for the removal. Not anymore. They don't want you to know what you're being charged until it's too late.
Amazon charges by the unit for removal. Even though they are all on a pallet, driving on a single truck in one delivery.
200 units times $28 = $5,600. There is no way in hell any truck would charge that much for a small pallet. I learned about the charge once it hit my account. When I tried to cancel the removal, it was too late. Open a ticket to inquire and refuse the charges? Denied.
I'm convinced that Amazon is in business to slowly strangle small businesses. They need us to stay alive. But they don't care to see us thrive.
Beware... I was just charged $5600 for a removal order
I have a product that came in pallets and Amazon requests us to send in certain amounts of inventory. It is very costly for me to continually re-palletize this product. It was much cheaper to send the whole pallet and pay the minimal storage fees.
Well, Amazon changed the rules again just like always. The amount they requested me to send in was now way too much and they began charging me storage fees, upwards of $600 per month.
By the time I caught onto these ridiculous charges, because they dock them from your payout, it was too late and I had been charged over $1800. So I decided that I should remove my inventory and look for a different fulfillment house. Previously it only cost me $400 to ship the inventory to Amazon. I figured that wost case it would cost $600 to remove it.
Well, it had been so long since I did a removal... They used to require you to approve the estimated charges for the removal. Not anymore. They don't want you to know what you're being charged until it's too late.
Amazon charges by the unit for removal. Even though they are all on a pallet, driving on a single truck in one delivery.
200 units times $28 = $5,600. There is no way in hell any truck would charge that much for a small pallet. I learned about the charge once it hit my account. When I tried to cancel the removal, it was too late. Open a ticket to inquire and refuse the charges? Denied.
I'm convinced that Amazon is in business to slowly strangle small businesses. They need us to stay alive. But they don't care to see us thrive.
5 replies
Seller_NbYSGJ8Tehgbv
Amazon's requests to send in certain amounts of inventory are always incorrect. I would suggest ignoring this and to only send enough to last you 60 days. Look up how much your SKU sold in the last 7 days and multiply it times 8. The answer is how much you should send to FBA. When your inventory falls under this number, send another batch that lasts you 60 days (Amazon takes so long to receive items that if you send it right when you fall under a 60 days supply, it should be just enough to restock your inventory without paying a fortune in storage fees).
I would add onto your warning that removal orders costs a ton. I have seen an Amazon seller remove storage bin containers (around 200) and it cost him 7000 dollars even though they do not weigh much.
TaylorR_Amazon
Hi @Seller_4keAKQEqPzOdr, I will pass your feedback along and I'm sorry you are dealing with this! For the future, you can find the removal order fees HERE. Was your product more than 10.0 lb?
Seller_OYCdor7aSZQzU
Yes the days of sending a whole MOQ directly to Amazon is done. Protect yourself and ship to a 3PL then drip feed a 60-90 day supply. This will also enable other multichannel options for the same inventory. As an owner of a 3PL(FBMFulfillment), I hear some real horror stories about AMZ inventory fees and removal fees.
