November 7, 2016
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.
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