Reservation Fee

The Reservation Fee on Amazon is something that sellers with a Professional selling account might encounter when they need extra storage space in Fulfillment by Amazon (FBA) centers. Here’s a simple breakdown of how it works:

1. Requesting extra space: Sellers can ask for up to 20% more than their initial restock limit or up to 2,000 cubic feet—whichever is larger. They can also set a maximum reservation fee they’re comfortable paying.
2. Earning performance credits: Amazon helps offset this fee through performance credits, which sellers earn based on how well their products sell using the additional space. If things go well, sellers could potentially cover the entire reservation fee!
3. Fee details: The reservation fee is calculated per cubic foot of the extra space requested. It’s charged after a specific period; for example, if approved for October, sellers will see the fee on their bill in early November.
4. Fee adjustment guarantee: If a seller’s request is approved, they won’t pay more than their stated maximum fee. If another seller later gets a lower fee for the same period, the original fee may be adjusted down.

Overall, this system helps sellers manage their inventory needs more effectively while keeping costs in check, especially when it comes to storage they may not end up using.