What is Amazon's long-term storage fee? Amazon's long-term storage fee review

Rule changes

Prior to April 2018, Amazon long-term storage fees were charged twice a year: February 15th and August 15th.

Effective April 1, 2018, monthly inventory storage fees for standard-size and oversized items will increase by $0.05 per cubic foot. This change will first be reflected in May 2018 storage fees incurred in April.

After August 15, 2018: The storage assessment date is the 15th of each month, and items that have been in a fulfillment center for 365 days or more will be charged $0.50 per unit per month.

Effective September 15, 2018, long-term storage fees will be adjusted and the assessment date will be changed from semi-annual to monthly.

Starting from February 15, 2019, sellers with inventory in Amazon's fulfillment centers can enjoy preferential benefits such as a reduction or even exemption of long-term storage fees! Among them, for products stored in the fulfillment center for 181 to 365 days, you only need to pay the previous long-term storage fee on January 15, 2019. After that, if the inventory age is less than 1 year, the long-term storage fee can be waived!

Cost Comparison

Fee changes after February 15, 2019: Starting February 15, 2019, products stored in a fulfillment center for more than 365 days will be charged a total long-term storage fee of $6.90 per cubic foot or a minimum fee of $0.15 per unit per month. FBA will charge the higher of the applicable total long-term storage fee and the minimum long-term storage fee.

How to determine product inventory time

The first method:

First, find the "Inventory" option in the Seller Center and click "Manage Inventory"

Click on Inventory Dashboard

Scroll down to “FBA Inventory Age” and click “View Details”. Here, sellers can see the estimated long-term storage fees and inventory age.

The second method:

In Seller Central, find “Reports” and click the “Fulfillment” option.

Under the "Inventory" column on the side, click "Show More", and then click "Inventory Health."

This report will show the products that are estimated to be subject to long-term storage fees in June and December, as well as the estimated long-term storage fees.

How to Avoid Long-Term Storage Fees

1. Replenishment should be scientific and timely

2. Use overseas warehouses to stockpile inventory

3. Reduce prices, promote products that are about to reach 6 months or 12 months of inventory through promotions, flash sales, off-site promotions, etc.

4. Create a removal order or multi-channel inventory and sell it to other platforms. You can also clear it to overseas warehouses and then re-enter the warehouse

5. If the value is low, destroy it directly

References

• 1. 2019 Amazon long-term storage fee changes, Amazon long-term storage fee collection method: Information Channel [reference date 2019-10-26T16:00:00.000Z]