How to calculate Amazon warehouse capacity? What is the method?

To open a store on Amazon, you not only need to learn store promotion skills, but also know how to operate and perform basic store operations. For example, merchants need to pay close attention to the capacity of Amazon warehouses and know how to calculate Amazon warehouse capacity. Let’s talk about the calculation method in detail below.

How to calculate Amazon warehouse capacity?

Amazon generally charges monthly inventory storage fees for the previous month between the 7th and 15th of each month. For example, to view January's inventory storage fees, you would view a payment report that contains transaction information from February 7th to 15th.

On the other hand, fees vary by product size segment and time of year. Although standard-size products are smaller than oversized products, they require more complex and costly racking, cabinetry, and boxing for storage. Fees are charged per cubic foot, so the total storage fee for standard-size products may be lower than that for oversized products (based on volume).

Long-term inventory storage fees are calculated based on inches per cubic foot:

1. Length x width x height (in inches) gives the volume.

2. Divide the volume by 12 cubic inches (12 x 12 x 12 inches = 1,728).

Example: Divide 47 x 12 x 10 inches by 1,728 to equal 3.3 cubic feet.

Suggestions to reduce storage costs:

1. Choose small and lightweight products. Warehousing fees depend largely on the size of the item, so look for products that are small but still have good profit margins.

2. Avoid dangerous goods. Amazon charges more for "dangerous goods," which include items that contain flammable, pressurized, corrosive and other hazardous materials, such as batteries, hairspray and pesticides.

3. Avoid storing items on Amazon for a long time. The longer you store items on Amazon, the higher the monthly fee will be. In addition, in addition to the above fees, Amazon also charges additional fees for any goods that are stored for more than one year. So try to complete the sale of products. If they are completely unsalable, you can ask Amazon to remove the product from the warehouse, but you will also be charged a removal fee (also known as a handling fee). In order to avoid this fee, it is recommended that merchants consider changing the pricing of products to make them more in line with customer needs. It is best to sell them at cost price instead of waiting to pay Amazon to handle it for you.

This is how Amazon calculates warehouse capacity. After knowing how to calculate warehouse capacity, you can timely and scientifically plan warehousing plans, clear idle inventory in the warehouse, etc., to provide enough space for new products that are about to be launched. This is also the basic skill of store operation.

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