![]() ![]() You sell half of a shipment in 60 days, sales from the other half trickle in over the next year (or more). Unfortunately I have really bad news: That’s the same as saying you’re getting out of the Amazon business. Let’s say you’ve decided that long term storage fees mean an end to long-tail inventory (or aren’t sure, and have decided to listen to people propagating this sentiment). To put another way, if you only sell inventory that will sell quickly, you’re effectively out of business. If you abandon residual, longer-term sales, you abandon Amazon. Residual sales are everything in an Amazon business Residual sales are the key to Amazon selling: If all you’re doing is “flipping,” you don’t have a business.(Better idea: create a buying formula that reduces risk.) It is over simplistic (or let’s just admit it – lazy) to declare new fees are the end of slow-selling inventory.If you’re declaring this the end of long-tail/low-demand books, there’s a big problem: Is this the end of low-demand books and other inventory? Fees for having items in your inventory for over a year have (usually) more than quadrupled.Fees for having items in your inventory for more than 6 months almost doubled. ![]() To recap the numbers, basically there’s two things to know about Amazon’s LTSFs: ![]() In this article, I’m covering something else: How to respond. Previous articles covered the specific numbers around long term storage fees. Here’s my novel-sized article on how to adjust for new Long Term Storage Fees… The new era of FBA Long Term Storage Fees What are some specific formulas you can use to mitigate against the impact of Amazon’s long term storage fees?.Is this the end of long tail books (and more)?.How should you change what you ship in to Amazon?.In this article, I set out to answer the questions: With Long Term Storage Fees, it’s more expensive to avoid risk (avoid slow-selling inventory) than to intelligently manage risk (buying slow selling inventory, but in a not-dumb way). ![]()
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