Supplement Seller Cuts Storage Fees by 40%
Result: 40% Lower Storage Costs
A supplements brand was paying steep FBA long-term storage fees while still running out of stock on fast-moving SKUs. Moving overflow inventory to PapayaShip's shared pool for FBM and FBA prep cut storage costs by 40% and improved in-stock rates across channels.
The Challenge
A supplements brand sold on Amazon and Shopify but kept separate inventory pools for each, leading to overstock-driven FBA long-term storage fees on slow movers and stockouts on fast movers that Amazon's storage limits wouldn't let them rebalance quickly.
Our Approach
PapayaShip consolidated the brand's Amazon and Shopify inventory into a single warehouse pool. Fast-moving SKUs ship FBM directly from PapayaShip while slower SKUs are prepped and sent to Amazon in smaller, more frequent batches sized to actual demand.
Results
- FBA storage fees reduced by 40% within the first quarter
- In-stock rate on top-selling SKUs improved across both Amazon and Shopify
- FBA prep and labeling handled in-house, removing a separate vendor
- Inventory now rebalances between channels on a weekly cadence