Amazon is raising its warehouse storage fees for the holidays

Fulfillment by Amazon fees to increase in November and December

Amazon warehouses will be raising the cost of storing goods for the months of November and December.

Last year, the company ran out of warehouse space during the holiday shopping season and ultimately that fact led to a loss of profits for the world’s largest e-commerce platform.

Amazon notified sellers last week that it would raise its fees.

The company’s goal is to make sellers only stock items they believe will have a high probability of selling before the end of the year.

Amazon sells storage space through a program called Fulfillment by Amazon. The program has become very popular since it started in 2006 with more than one-quarter of all items Amazon sells now arriving by way of that program.

Originally, FBA customers had to allow their items to be sold under the free shipping program included with Amazon Prime. Last year, the company started allowing reliable merchants to sell goods to Prime customers that they store themselves, and not in Amazon facilities.

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That move has allowed Amazon to free up some space, and it has allowed the company to lower fees for the month of October to offset its two busiest months.

The move is also allowing for the lowering of weight fees, charged per pound, for FBA items it ships during November and December.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.