How we helped an Amazon seller from Australia save about $4,000 in storage fees

When Lasaert Sports needed assistance with their Amazon PPC Account, it ended up being a Seller Account Audit, which helped the client to save thousands of dollars in storage fees.

In this case study, we look at the problems Binary Means identified, recommendations we made, the outcome thereof and the lessons learnt.

Client : Lasaert Sports
Location : Australia
Service : Marketplace Consulting
Platform : Amazon
Scope : Sales Metric, Price Competitiveness, Inventory Performance, Storage
Duration : Jan 18 – Feb 13, 2018

Problems Identified :

– Poor sales seriously hampered by inability to win buybox, a direct result of poor pricing strategy;
– Excess stock resulting in poor Inventory Performance Index (IPI);
– Imminent Long-Term Storage Fee (LTSF) due to excess stock since 2016.

Recommendations:

Option 1 : Get rid of the stock at a much lower price before the 15th Feb 2018 to avoid LTSF fees. Given the time limit, it seemed most unlikely.

Option 2 : Create a removal order for excess units to be sent back to original warehouse.

Option 3 : Create a removal order to dispose off excess units

Outcome :

Considering the cost and the inconvenience of sending them back to the original warehouse, client decided to go with option 3.

In the end, the client saved over $3,843.71 in storage fees.

Lessons :

1. Always send a few samples of new product lines to test before you commit more to inventory.

2. Research thoroughly about your competition to understand what you are up against in terms of pricing

3. Always price upward for new product lines

4. Keep an eye on your Inventory Performance Index, especially after 90 days of adding the product to inventory.

Leave a comment

Your email address will not be published.