What’s the Monthly Minimum Fee and what’s its purpose?
The Monthly Minimum Fee (the “Fee”) is a standard $500 monthly fee designed to help us maintain the operational capacity and infrastructure necessary to support merchants within our fulfillment network. Such fees are typical for fulfillment providers to ensure continued quality fulfillment services despite fluctuations in volume at the merchant level. If your non-D2C storage spend is at least $500 in any given month, the introduction of this fee will not have an impact on you. We expect this minimum fee to only impact merchants fulfilling under roughly 40 orders per month (about one order per day). The Fee will take effect on July 1, 2025.
How is the Monthly Minimum Fee calculated?
The Fee is assessed at the end of each month and is based on the total non-D2C storage spend for that month. Non-D2C storage spend consists of any spend across:
- Fulfillment
- Reserve Storage
- Pallet handling
- Label services
- Prep
If your non-D2C storage spend for a given month is less than $500, we will charge you the delta between that spend and $500. As illustrated in Example 1 below, the July Minimum Fee of $500 is offset against the $300 in non-D2C storage spend. The remaining $200 is charged in the first August invoice.
If your non-D2C storage spend for a given month exceeds $500, no additional charges will appear on your invoice. As illustrated in Example 3 the chart below, since the non-D2C storage spend is $800, the $500 Monthly Minimum Fee will be completely covered by that amount. As there is no remaining balance after the offset, the first invoice in August will not include a charge for the July Monthly Minimum Fee.
July spend examples:
Monthly Minimum Fee | Non-Storage Spend | D2C Storage Spend | Monthly Minimum Fee Charged | |
Example 1 | $500 | $300 | $500 | $200 |
Example 2 | $500 | $400 | $500 | $100 |
Example 3 | $500 | $800 | $500 | $0 |
Example 4 | $500 | $1,000 | $500 | $0 |
How do I know if I will be impacted by the Monthly Minimum Fee?
The Monthly Minimum Fee is applicable if your monthly non-D2C storage spend is less than $500. On average, we expect that only merchants fulfilling under roughly 40 orders per month (about one order per day) will be impacted by this fee.
Before the Fee goes into effect on July 1, we will enable a Seller Portal feature to track your monthly eligible spend and highlight if you will be subject to additional charge once the fees goes live. In the interim, please file a ticket with any specific questions regarding the potential impact for you.
How will the Monthly Minimum Fee show up on my invoice?
The Monthly Minimum Fee charge for a given month, will be charged in the first invoice of the next month. For example, the fee for July will be included in the first invoice issued in August and be offset against non-D2C storage spend from July.
How do I avoid being impacted by the Monthly Minimum Fee?
You can avoid the Monthly Minimum Fee by utilizing more non-D2C storage services offered by us. Additionally, as your business continues to grow, the impact of the Fee will decrease.
Can I remove inventory before this fee goes into effect? What fees would be applicable?
You can set up inventory removals or disposals in the Seller Portal following the process outlined here. If you are looking to remove your entire inventory from the network, please reach out to the support team here to access lowered removal or disposal fee.