Sellers who are cross-border e-commerce sellers know that Amazon is a platform that pays great attention to consumer experience. In order to improve the shopping experience of consumers, many Amazon sellers will choose to send FBA. Regardless of the off-peak season, logistics and warehousing costs are always the bulk of sellers' costs.
As a boss, the most concern is the profit of the store. In addition to seeing beautiful revenue, you also need to focus on the proportion of costs. After all, it is related to the adjustment of commodity strategy and the future development of the enterprise. Has the boss ever had such a question: my FBA storage fee is higher than others, why is it higher? Why are you taller than others?
In fact, the warehouse closing fee in the FBA fee is deeply hidden in the Amazon report, and it is easy for financial personnel to ignore the omission. Sellers who don’t count this fee may have been spending a fortune over time.
What are closing and splitting?
Combined warehouse means that FBA products are concentrated in the same Amazon FBA warehouse, and sub-warehouse means that Amazon divides the same batch of goods and products of the same SKU created by the seller into 1~3 FBA warehouses.
When creating an FBA delivery order in the background, in the inventory configuration option Inventory Placementoption, there will be two choices: inventoryplacement services (joint warehouse), distributed inventory place (divided warehouse). And Amazon's FBA, the default setting is divided warehouse.
Why does Amazon split warehouses by default?
1) Improve warehouse utilization
The reason why Amazon divides the seller's products into warehouses is to improve the reasonable utilization rate of the warehouse and prevent the warehouse from being burst or vacant.
According to the facility conditions, temperature, humidity and other factors of each FBA warehouse, Amazon conducts a comprehensive analysis combined with the seller's product type, and then assigns various types of products to the most suitable FBA warehouse.
2) Save on FBA Shipping Fees
In order to save its own costs, after Amazon distributes the seller's inventory to multiple Amazon fulfillment centers, buyers can save FBA delivery costs when purchasing products compared to the case where the inventory is far away.
How to calculate the combined warehouse fee and split warehouse fee?
Before calculating the warehouse closing fee and the warehouse splitting fee, let me introduce you to the composition of Amazon FBA fees:
FBA fee = Fulfillment Fees (execution fee) + Monthly Storage Fees (monthly storage fee) + Inventory Placement Service (warehousing inventory and placement service fee)
Fulfillment Fees = Order Handling + Pick & Pack + Weight Handling
Amazon sellers will be charged if they take the initiative to combine and divide their warehouses. This fee is attributed to the Inventory Placement Service, that is, the service fee for storage and inventory placement.
According to the latest inventory placement fee policy in Amazon Seller Central, the calculation rules are as follows
This means that, assuming that the seller's product is a standard product less than or equal to 1 pound, and the number of products sent in one ticket is 1,000 pieces, if you choose to close the warehouse, FBA will charge a closing fee of 1000×0.3=300$, and also It is 2000 RMB!
In the daily operations of Amazon sellers, if you want to calculate this cost, you first need to log in to the store background and manually download Amazon's reports. It includes dozens of reports such as Inventory reports, Order reports, Business reports, Advertising reports, Fulfillment reports, and Payment reports. The financial staff must splicing, screening, and checking the Amazon platform, logistics, warehousing and other expenses according to the store or product dimension to find out the combined warehouse fee.
Such a link has taken a lot of time for the financial staff, and it is even more difficult to allocate this cost to each store or commodity calculation. If the boss wants to adjust according to the income and expenditure of the commodity, it is a castle in the air.
If you want to obtain timely and accurate closing costs, you can view it through the profit report of Linkstar ERP!
Leadstar ERP apportions the various costs in the FBA storage fee, and supports viewing by dimensions such as MSKU, ASIN, parent ASIN, etc., and accurately obtains the FBA fee for each product, including monthly storage fees, long-term storage fees, and FBA destruction fees. , warehouse fees, etc.
With the detailed proportion of FBA warehousing expenses, it provides more complete data support for sellers to adjust their replenishment strategies.
Operators can optimize the replenishment frequency and quantity of commodities according to the capital budget, and reduce the cost incurred by FBA warehousing.
For the boss, the cost increase and the profit reduction due to the undercalculation of the warehouse splitting fee or the warehouse closing fee will directly affect the healthy development of the enterprise in the long run.
For the operation, the invisible huge sum of money generated by not knowing the warehouse closing fee or the warehouse splitting fee has become a big grievance when creating a delivery plan!
Amazon's warehouse closing and warehouse splitting fees are expenses that are often overlooked by sellers. When sellers want to combine or separate warehouses, they can check the cost of operating the product according to the cost of combining/separating warehouses calculated by Leader ERP , and then make a decision whether it is within their own acceptance range!