using the fba reports for cost efficient inventory...
TRANSCRIPT
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Fulfilment by Amazon Webinar
Using the FBA reports for cost efficient inventory management
22nd January 2013
Agenda
Overview of FBA Reports
Inventory Health Report
Long Term Storage Program
Q&A
Useful References
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Using the FBA reports for cost efficient inventory management
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Overview of FBA Reports
FBA reports give you all necessary information regarding your FBA business:
You must provide invoices to your buyers if they
request it. Amazon does not include invoices in FBA
shipments. Buyers’ details for invoicing are
available in the shipment report.
Amazon handles customer
returns, but you can see them
in this report, including the
reasons given by the buyers.
Check your best sellers, your
overstock and your aging
inventory.
Using the FBA reports for cost efficient inventory management
Overview of FBA Reports
Inventory Health Report
Long Term Storage Program
Q&A
Useful References
Agenda
Page 4
Using the FBA reports for cost efficient inventory management
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You should regularly monitor your FBA stock performance to:
• Increase your sales
• Minimise your storage costs
The report gives you detailed data about your FBA stock: • Current sellable and unsellable quantities
• Inventory age
• Units shipped to buyers
• Weeks of cover
• Number of competing offers
• Lowest prices information (inclusive of shipping charges)
• Expected long term storage units and fees
Inventory Health Report
Using the FBA reports for cost efficient inventory management
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Identify the oldest stock in FBA storage:
Filter those columns to see slow-moving or ‘dead’ stock
It is not advisable to replenish dead stock. Check if it is selling at all, and if so, check what your weeks of cover are :
At this current sales pace, you have enough stock to last about
70 years…Is that really what you want?
Inventory Health Report – Usage examples (1)
Using the FBA reports for cost efficient inventory management
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Check if you can do anything to get the stock to sell
Also identify ‘healthy’ stock, that is: recently added, in adequate quantities, and which is selling at a good pace:
Make sure you replenish if newly added stock sells faster than you expected!
If you already are the cheapest, and have done everything you could without success (ex: improving
product description), then consider removing that stock
Inventory Health Report - Usage examples (2)
Using the FBA reports for cost efficient inventory management
Overview of FBA Reports
Inventory Health Report
Long Term Storage Program
Q&A
Useful References
Agenda
Page 8
Using the FBA reports for cost efficient inventory management
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Please note the following regarding the Long-Term Storage Fee:
• Units in storage for 365 days or longer on the day of the review are assessed a semi-annual fee of £882.50 per cubic meter (£25 per cubic foot).
• You are allowed to keep one unit of each ASIN without incurring the fee.
• Removal/Disposal of affected units has to be requested before the review date (not necessarily completed).
• For the full details, please visit the help page.
February 2012 August 2012 February 2013 August 2013
Long term storage program
Using the FBA reports for cost efficient inventory management
10th January
2012: Seller
sent 5 units of
ASIN X to
Amazon’s
centre
15th August
2012: the stock
is less than 1
year old so no
long term fee is
charged
15th February
2013: the stock
is more than 1
year old so 4
units are charged
£25/cubic foot
15th August 2013:
the seller will be
charged
£25/cubic foot
again unless he
removes the 4
aged units
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The long term storage fees are applied to units which have been stored in FBA for one year or longer. Various reports exist for you to take relevant actions.
You can see which units will be
affected by the next review in
the inventory health report
You can see what long term fees
you were charged, for which
units, at the last review
If you wish, you can create a
removal order for the
affected units from here
Long term storage program
Using the FBA reports for cost efficient inventory management
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The Inventory Health Report shows units that will be affected by the next review
The number of sellable Units
that will have been in storage
for 365+ days as of the next
Inventory Cleanup (15 August
or 15 February)
The projected Long-Term Storage
Fees that will be charged for the
Est. Long-Term Storage Units
(assuming no further sales of your
inventory)
If you decide to remove the affected units, you can use the Recommended Removal report to create a removal order:
Long term storage program
Using the FBA reports for cost efficient inventory management
Automated Unfulfillable and Long-Term Storage Removals (1)
Using the FBA reports for cost efficient inventory management
In the Fulfillment by Amazon Settings section of Seller Central you have the option to set up an Automated Unfulfillable and Automated Long-Term Storage Removals.
• If the item is standard size we charge 0.60 GBP per unit for removal or 0.20 GBP per unit for disposal.
• If the item is oversized we charge 1.00 GBP per unit for removal or 0.50 GBP per unit for disposal.
If you are not VAT registered these fees will be subject to 20% UK VAT. (fees correct on 22.1.2013 subject to change)
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Using the FBA reports for cost efficient inventory management
Automated Unfulfillable and Long-Term Storage Removals (2)
When setting up the Automated Unfulfillable Removals you can choose whether we should generate your removal/disposal orders: • Every 90 days on the first of the month • Monthly on the first of the month • On the 5th and 20th of each month
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Using the FBA reports for cost efficient inventory management
Automated Unfulfillable and Long-Term Storage Removals (3)
• By enabling the Automated Long-Term Storage Removals settings, you are requesting the removal (return or disposal) of Units affected by the next inventory cleanup.
• Inventory cleanups occur on 15 February and 15 August of every year, at which time inventory units that have been in our fulfilment centers for 365 days or longer will be assessed an upfront, semi-annual Long-Term Storage Fee.
• These settings apply to units that would be subject to a Long-Term Storage fee on the next inventory cleanup date ONLY. When the removal order is submitted, we will send an automated e-mail notification with the removal order ID to the e-mail address you provide.
• You will need to re-enter settings for Automated Long-Term Storage Removals before the next inventory cleanup date.
• Standard return and disposal fees will apply to the removals requested through this program.
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Overview of FBA Reports
Inventory Health Report
Long Term Storage Program
Q&A
Useful References
Agenda
Page 17
Using the FBA reports for cost efficient inventory management
Q & A
Page 18
Using the FBA reports for cost efficient inventory management
Overview of FBA Reports
Inventory Health Report
Long Term Storage Program
Q&A
Useful References
Agenda
Page 19
Using the FBA reports for cost efficient inventory management
Useful References
• FBA Reports
• FBA Pricing
• Creating FBA Removals
• FAQ about the FBA Long Term Storage Program
• FBA Manual
• MWS for FBA sellers
• Webinar Invitations and Recordings
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Please note this presentation is for information purposes only. Visit our Help pages or Contact Seller Support for more information or to check that the information is still accurate. No promises or assurances of future sales are intended or implied. Participation in the FBA programme is subject to the FBA terms in the Amazon Services Europe Business Solutions Agreement and policies set forth in the FBA manual. You will be responsible for ensuring all products registered with FBA comply with such terms and policies found through this link.
Using the FBA reports for cost efficient inventory management
Thank you!
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