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Whether you are strictly FBA with no third party warehouse, or you house a portion of your in a domestic warehouse, it doesn’t feel good to pay those monthly and long term storage fees.
You need a cost-saving solution that doesn’t cost a ton but that still keeps you from constantly stocking out.
And while that may just sound like a fancy way of saying storage, trust us, it’s so much more.
Amazon’s storage fees are high, especially their long term storage. So, in most cases, a third party warehouse is the best solution.
But you need a solution that also keeps off-Amazon storage costs down. While for the most part, it is generally cheap-er to store your inventory off-Amazon, that’s not to say it’s cheap.
Warehousing in the U.S. is likely to cost you between $20-$25 per pallet. A hard pill to swallow. It adds up.
But, hey, it’s cheaper than Amazon’s storage fees and better than running out of stock. So it’s a necessary evil right?
Not necessarily…
However, to repeat, running out of inventory is the worst thing that could happen in your business.
So we don’t always advise only warehousing in China all the time.
With our smart warehousing and logistics solutions, it may make the most sense to your business to warehouse part of your inventory in China and part in the U.S.
This means you can produce stock in large numbers, send what you need to FBA, keep a safety stock and fulfillment inventory in your U.S. warehouse and the bulk of your remaining inventory in a Chinese warehouse at a lower cost.
And taking advantage of high speed ocean freight, which can cut down shipping time by half, means you can still get orders into Amazon on time.
So, if you’re tired of looking at your storage bill every month, reach out to us and let us help you to develop a customized storage and logistics plan that saves you money and keeps you in stock.
