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November 7, 2016 Comments Off on Amazon Tests Surge Pricing Storage Fees Views: 306 California, California News, West

Amazon Tests Surge Pricing Storage Fees

Millions of merchants that use Amazon.com’s facilities to fulfill orders are being encouraged to practice more efficient warehousing this holiday season. For the first time, the giant e-commerce retailer is testing surge pricing for storing merchandise.

Storage fees in November and December are being raised by more than triple to $2.25 per cubic foot a month, compared to 54 cents the rest of the year. To help offset the increase, the cost of fulfilling items is being lowered by 5% to $2.88 per unit.

The company hopes to reduce out-of-season inventory storage by third-party sellers that stock up on items not likely to sell by the end of the year. Amazon increased its facility capacity by roughly 30% this year, but it says the space is needed to speed the flow of goods and optimize use of space during the booming holiday season.

Read More at Wall Street Journal

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