4 Tips for your Q4 Strategy:

It comes with no surprise that the world of e-Commerce has grown tremendously within the past 5 years. In the US, business to customer sales has gained 10% compound annual growth, with projections to be at 1.8 trillion in sales by 2023. In addition to B2C growth, now businesses are making their purchases on Amazon, including 55% of Fortune 100 companies, 63% of the 100 biggest US hospital systems, 52% of the 100 most populous local US governments, and 80% of the 100 largest enrollment education organizations. Therefore, if you are looking to increase the reach of your business, it has never been a better time to utilize Amazon’s marketplace.

Taking the advantage comes with knowing some crucial dates in Q4, so you can avoid
some of the most common mistakes sellers make during the holiday season.

      Increased Inventory Storage Fee: October- December

BEWARE! From October 1st to December 31st Amazon increases storage fees by 150%-250%, on both standard and oversized items. Knowing the total average cubic feet, you expect to have in an FBA warehouse during these months will allow you to know your true profitability as well as make informed decisions for your business.

  1. You can look at the previous Q4 Monthly Storage Fees report in your fulfillment reports (and adjust for any increase in your inventory for this year). If this is your first Q4 you can look at the Fee Preview report and multiply by the # of units you plan to send in this year.
  2. If you are not competing with other FBA sellers, you may consider utilizing the merchant fulfilled prime shipping for your slower-moving items, so they are not racking up storage fees all quarter. Having a 2nd prime listing can also increase your exposure in the buy box as well as ensure your product is available for purchase if you sell through all your FBA inventory.
  3. A year-round strategy but especially in Q4, don’t send your slow movers to FBA. Sending in an increased level of inventory in preparation for the holiday season will already lower your seller score, this is not the time to let your slow movers linger. Speaking of slow-moving inventory, this brings me to my next point…

      Free Removals:

Amazon is offering Free Removals for your under-performing inventory From October 14th through October 31st! Take advantage.

3.      New to Amazon: Get Storage and Removal Fees Waived

From March 18, 2019, through February 18, 2020, Amazon FBA will waive monthly storage and removal fees on up to 100, “New-to-Amazon” ASINS sent into FBA for up to 50 units/ASIN.

Allowing for worry free-market testing, this promotion eliminates the risks associated with elevated Q4 storage rates so you can see how well your new products will sell.

      Inventory cutoff for Dates:

  •  Black Friday and Cyber Monday- November 5 There is a deadline for sending inventory for Black Friday and Cyber Monday; your inventory must be at an Amazon warehouse by November 5th. Black Friday (November 29) begins the holiday shopping season and Cyber Monday (December 2) allows for an array of savings online for all Amazon shoppers.
  • Inventory cutoff for Christmas – December 1 All FBA inventory that plans to be delivered by December 25 must be in Amazon’s Warehouse by December 1. Be mindful and make sure you have enough inventory.

Planning and executing your FBA Q4 strategy can
be tricky, we hope that these tips will help in your business’ success this
shopping season!

Leave a Reply

Your email address will not be published. Required fields are marked *