The Downside of Selling on Amazon FBA – Longterm Storage Fees

I’ve sold on Amazon in the past, both merchant and fulfilled by Amazon FBA, and if you can find the right product the money will stream in, but beware of the downsides of Amazon FBA. It may seem like no one else is selling your product so you send in over 100 items to be fulfilled by Amazon, but then the product doesn’t sell.

It’s great seeing your product live ready to be purchased by millions of people through its Prime programme, but you also need to beware of Amazon’s longterm storage fees if the product doesn’t sell. They normally calculate this each month and add it to your balance. If products are not selling, you may choose to advertise the product, but even this does not guarantee a sale.

Then there is the competition. Competition of the same product by other sellers will lower your profit margin and you may lose you the ‘elusive’ Amazon buy box. If the product doesn’t sell well then you’ll have the longterm storage fees applied to your Amazon account each month, or you can have the products returned to you by Amazon, which will also incur a fee. Amazon are the only winners in this vast online market of competition.

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