Amazon charges sellers monthly storage fees to keep products at their fulfillment centers, based on size and peak season surcharges. Long-term storage over 365 days also incurs fees.
How are FBA storage fees calculated?
Fees are charged per cubic foot of inventory stored, between the 7th-15th day each month based on the prior month's inventory levels. Rates increase in Q4 during holiday peaks.
What causes high FBA storage fees?
Slow inventory turnover and long-term storage of over 365 days are the main reasons sellers incur substantial fees. Low demand products lingering too long drive up charges.
How can I avoid monthly FBA storage fees?
Retrieve and return aging inventory to yourself, discount slow sellers, leverage Amazon removal promotions when offered, and carefully manage restock levels based on sales velocity.
What is the long-term storage fee threshold?
Products stored over 365 days in FBA centers incur additional long-term storage fees of $6.90 per cubic foot or $0.15 per unit monthly, whichever is higher.
When are FBA storage fees charged?
Amazon deducts monthly storage fees between the 7th-15th of each month, based on cubic footage of inventory stored in their facilities throughout the previous month.
How can I optimize inventory to minimize storage fees?
Analyze sales reports to calibrate optimal inventory levels that turnover within 30-45 days. Ship partial quantities first to gauge velocity before stocking up.
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