Amazon Long Term Storage Fee 2024: 8 Tips For Sellers
Are you storing items on Amazon for a while? If so, it’s important to be aware of Amazon’s long-term storage fees. These fees are charged monthly for items that have been sitting in Amazon’s fulfillment centers for over six months.
In this blog post, we’ll dive into the details of Amazon’s long-term storage fees.
What are Amazon Storage Fees?
When selling products through Amazon FBA (Fulfillment by Amazon), sellers can store their inventory in Amazon’s warehouses. Amazon then handles all aspects of fulfillment, including storage, picking, packing, and shipping. To cover the costs of these services, Amazon charges storage fees.
Factors Affecting Storage Fees
Storage fees are influenced by several factors:
- Product dimensions: Larger products occupy more space and incur higher fees.
- Product type: Certain product categories may have specific storage requirements or fees.
- Seasonality: Fees can vary depending on the time of year, with higher rates during peak seasons (e.g., holidays) and lower rates during off-peak seasons.
- Oversizing: Products that exceed Amazon’s size limits may incur additional fees.
- Inventory age: The duration that products spend in Amazon’s fulfillment centers can affect storage fees, with older inventory incurring higher costs.
Amazon Storage Fees Rates
Amazon frequently updates its fees, and monthly storage fees depend on several factors, including dimensions, type, and oversizing. Notably, Amazon has different storage fees for different seasons.
The Amazon FBA storage fees increase during peak seasons, such as the holiday season, when there is a significant load on Amazon’s warehouses. Conversely, pricing typically decreases during off-peak seasons. As of April 1, 2024, the basic storage fees for standard items range from $0.78 to $2.40 per cubic foot. Below is a detailed table of Amazon storage fees.
Sellers can utilize the storage utilization ratio and storage utilization surcharge to manage their monthly inventory storage fees. Certain Amazon warehouses may have high removal fees in addition to storage costs. In such cases, sellers should consider removing inventory and increasing sales velocity to minimize costs.
What are Long-Term Storage Fees?
Previously known as “long-term storage fees,” the aged inventory surcharge is an additional fee imposed on inventory that remains unsold in Amazon’s warehouses for an extended period, contributing to long term storage costs.
This surcharge is intended to incentivize sellers to manage their inventory effectively and avoid excess storage costs.
Amazon Long-Term Storage Fee Rates
Similar to standard storage fees, Amazon’s long-term storage fees depend on various factors, including item type, dimensions, oversizing, and the season. The aged inventory surcharge has gained attention due to recent changes in Amazon’s policies, leading to increased aged inventory surcharges.
One significant change is the modification of the time frame. Previously, inventory was classified as aged if it had not sold within 271 days. Now, that timeframe has been reduced to 181 days. This means sellers will incur an aged inventory surcharge if their inventory is stored for more than 181 days. The fees range from $0.50 to $6.90 per cubic foot.
How To Calculate Amazon Long-Term Storage Fees
Follow these steps for calculating storage fees:
- Measure dimensions: Determine the length, width, and height of the product in inches.
- Calculate volume: Multiply the length, width, and height to get the volume in cubic inches.
- Convert to cubic feet: Divide the volume by 1728 to convert it to cubic feet.
- Determine fee: Use the appropriate fee rate based on the product type, storage duration, and Amazon’s current pricing.
- Multiply: Multiply the volume in cubic feet by the fee rate to determine the total surcharge.
8 Strategies to Avoid Long-Term Storage Fees
Long-term storage fees can be a significant financial burden for Amazon sellers, especially when FBA inventory doesn’t sell as expected. These fees are charged for products that remain in Amazon’s fulfillment centers for an extended period. To avoid these costs, sellers need to implement effective strategies to manage their inventory.
1. Implement Strategic Inventory Planning:
Effective planning is crucial for success on Amazon. By conducting thorough market analysis, understanding customer behavior, and forecasting demand, you can optimize your inventory levels and reduce the risk of excess stock.
2. Opt for a Smaller Inventory
If you are a new seller or introducing a new product to the market, consider starting with a smaller inventory. For new products, create a limited stock inventory to gauge customer feedback and demand. Adjust your inventory based on this feedback. Many sellers mistakenly build large inventories based on initial good sales, only to experience poor performance later, leading to substantial long-term storage fees.
3. Optimize Listings and Product Information
High-quality listings are essential for attracting buyers and increasing sales. Ensure your product descriptions are detailed, images are clear, and keywords are optimized. Additionally, consider offering competitive pricing and fast shipping to improve your product’s visibility and appeal.
4. Utilize Promotions and Discounts:
Sales and discounts can be effective tools for moving slow-moving inventory. Consider offering seasonal promotions, limited-time deals, or bundle discounts to stimulate demand and reduce storage costs.
5. Leverage Amazon's Advertising Tools
Amazon’s advertising platform provides powerful tools to promote your products and reach a wider audience. By strategically targeting potential customers, you can increase sales and minimize the risk of long-term storage fees.
6. Utilize the Recommended Removal Report
Amazon’s Recommended Removal Report identifies products that you should consider removing from its fulfillment centers to prevent incurring aged inventory surcharges. Make it a habit to review this report regularly and act on the recommended items.
7. Liquidate Removed Items Through Amazon Outlet
Liquidating removed items through Amazon Outlet is a smart way to avoid or lower long-term storage fees. By listing these items on the Outlet, you can quickly move your inventory at discounted prices, reducing the risk of incurring additional charges. Shoppers at the Amazon Outlet are typically seeking bargains, which boosts your chances of making successful sales. This strategy not only helps decrease storage fees but also enables you to recover some of your investment, reducing losses and enhancing your inventory management.
8. Removing Inventory to Avoid Storage Fees
Removing inventory is an effective way to avoid storage fees. Here are some ways to remove inventory from Amazon’s fulfillment centers:
Creating a Manual Removal or Disposal Order
Creating a manual removal or disposal order is a straightforward way to remove inventory from Amazon’s fulfillment centers. Here’s how to do it:
- Log in to Your Amazon Seller Central Account: Go to the Inventory tab and select the products you want to remove.
- Create a Removal Order: Click on the “Create Removal Order” button and select the products you want to remove.
- Choose the Removal Method: You can choose to have the products returned to you or disposed of. Returning products allows you to sell them through other channels, while disposal is suitable for unsellable items.
- Confirm the Removal Order: Review the removal order details and confirm it. Amazon will process the removal, and you will avoid incurring further storage fees for those items.
By following these steps, you can efficiently remove inventory from Amazon’s fulfillment centers and avoid unnecessary storage fees. This proactive approach helps you manage your inventory more effectively and maintain profitability.
Wrapping Up
Avoiding long-term storage fees on Amazon is crucial for maintaining profitability and optimizing inventory management. By implementing strategic planning, adjusting inventory sizes, focusing on effective listings, leveraging sales, and utilizing resources like the Amazon Outlet and Recommended Removal Report, sellers can successfully manage their inventory and minimize costs.
Turning your bookshelf into a source of income has never been easier, thanks to Amazon. If you have books collecting […]
If you’re an Amazon seller, encountering an account suspension or policy violation can be a significant setback. But with the […]
Introduction Amazon dropshipping is an increasingly popular way to run an e-commerce business without the need to store or ship […]
Introduction The Amazon Influencer Program is a great way for content creators to turn their influence into earnings. This program […]
Introduction Amazon Kindle Direct Publishing (KDP) is a platform that allows authors to self-publish their work as ebooks or print […]
Selling on Amazon offers many opportunities for businesses, but it’s essential to understand the costs involved with Fulfillment by Amazon […]
Walmart is quickly becoming a popular platform for brands and sellers to connect with more customers. One way to boost […]
In today’s competitive retail landscape, reaching the right audience at the right time is crucial for success. Walmart’s Demand Side […]
In today’s fast-paced eCommerce landscape, shoppers demand speedy delivery. Walmart has responded by offering 2-day shipping, giving sellers on the […]
Running successful Walmart advertising campaigns takes more than just setting them up—it requires ongoing optimization. A Walmart PPC (Pay-Per-Click) audit […]
Are you ready to tap into the massive potential of Walmart Marketplace? With millions of daily visitors and a loyal […]
In the world of e-commerce, Amazon and Walmart reign supreme, dominating the retail landscape. These two giants offer vast opportunities […]
Are you a brand owner struggling to maintain control over your products on Walmart? The Walmart Brand Portal is here […]
Are you dreaming of a passive income stream from your Walmart store? The allure of an automated Walmart store with […]
Are you a seller looking to tap into the massive market of private-label brands? Walmart, one of the world’s largest […]
Tired of your Walmart products getting lost in the shuffle? In this blog post, we’ll dive into the essential strategies […]
Ever wondered why some Amazon sellers seem to have a magic touch with product bundles? It’s not luck—it’s strategy. Bundling […]
If you’re a Walmart seller looking to grow your business through retail media, Walmart Connect could be a game-changer. But […]
If you’re an Amazon seller, you may have noticed a portion of your inventory marked as “reserved” without knowing exactly […]
Have you ever wondered what managing your own Amazon orders is like? Switching from Fulfilled by Amazon (FBA) to Fulfilled […]
Walmart Marketplace offers an exciting opportunity for sellers to reach a vast audience by listing their products on Walmart’s platform. […]
Selling products on online marketplaces has become a vital strategy for businesses to reach more customers. If you’re looking to […]
Are you a Walmart seller aiming to improve your visibility and sales? In this blog, we will explore Walmart SEO, […]
As an Amazon brand owner, maintaining control over your product listings is essential to protect your brand’s reputation and customer […]
Introduction Tired of losing out on Walmart sales to competitors? Want to know the secret to consistently winning the Buy […]
Are you an Amazon seller struggling to increase your rating? A high seller rating is crucial for attracting new customers […]
As an Amazon seller, providing the best customer service is paramount to maintaining a positive customer experience. One key metric […]
Are you an Amazon seller wondering what the IPI score is and how it affects your business? Look no further! […]
Introduction Starting an Amazon subscription box business presents a unique opportunity to tap into the growing trend of curated, recurring […]
Thinking about using Fulfillment by Amazon (FBA) to sell on the Amazon marketplace? Awesome! But before you box up your […]
Thinking about using Fulfillment by Amazon (FBA) to streamline your Amazon business? While FBA offers a convenient way to store […]
For FBA sellers, the Amazon Buy Box is the holy grail of product visibility. But with constant algorithm updates and […]
Have you ever wished you could offer customers pre-made packages of complementary products without the hassle of physically bundling them […]
Have you ever wanted to create a more branded and engaging presence for your products on Amazon? An Amazon storefront […]
Are you storing items on Amazon for a while? If so, it’s important to be aware of Amazon’s long-term storage […]
When selling products on Amazon, it is crucial to follow their packaging requirements, rules, and guidelines. Proper packaging ensures that […]
A/B testing on Amazon can significantly enhance your product listings and boost sales. This method, also known as split testing, […]
Have you ever browsed Amazon and stumbled upon a product with a little blue badge that reads “Amazon’s Choice”? It […]
Introduction Selling on Amazon can be a great way to get your products out there. But once someone buys your […]
Ever feel like you’re missing something in your Amazon PPC Search Terms report? You might be! Sure, they show what […]
Amazon can be a fantastic platform to reach new customers, but keeping your virtual shelves stocked can get tricky. That’s […]
Navigating Amazon as a new seller can be tough, but there are tools and programs available to help. Amazon’s Launchpad […]
Have you ever scrolled through an Amazon search result page and noticed product recommendations nestled alongside the standard listings? These […]
Finding time for yourself while selling on a competitive marketplace like Amazon can be challenging. As a seller, your main […]
Starting an E-commerce business has become quite easy with Amazon, but it also brings heavy competition. Millions of Amazon sellers […]
As an Amazon seller, you know the importance of getting your products seen. But with millions of listings, how do […]
Ever scrutinized an Amazon product page and noticed the cryptic “Sales Rank”? Wondering what it means and how it impacts […]
Millions of products compete for customer attention on Amazon’s search results page, making it tough for your brand to stand […]
Are you selling products on Amazon and looking to increase your sales? This blog is for you. We’ll share tips […]
Are you an Amazon seller looking to boost your brand visibility and profitability? Are you feeling stuck in the cycle […]
Ever wonder what drives your online shopping habits? Perhaps a captivating product description, or an eye-catching professional photo? As it […]
For any seller on Amazon, understanding the A9 algorithm is crucial for success. This complex algorithm dictates which products appear […]
Are you an Amazon seller looking to turn those single purchases into recurring revenue? Look no further than the Subscribe […]
Amazon has become a go-to platform for all e-commerce business owners to launch and scale their e-commerce brands online. But […]
Mother’s Day, a time to celebrate the incredible women who raised us, is a prime opportunity for Amazon sellers to […]
In the ever-competitive landscape of Amazon, ranking high in organic search results is crucial for driving sales. While you might […]
If you’ve ever found yourself scratching your head over Sessions and Pageviews on your Amazon business reports, you’re not alone. At […]
Amazon is a massive marketplace, attracting millions of customers with diverse needs, preferences, budgets, and mindsets for shopping. To effectively […]
With Amazon boasting over $575 billion in retail sales for 2023, it’s no wonder so many sellers flock to its […]
Advertising on Amazon through pay-per-click campaigns can significantly enhance product visibility and sales for sellers. However, mastering Amazon PPC, with […]
Have you heard of the terms copyright infringement and plagiarism? If so, then Amazon Brand gating won’t be unfamiliar to […]
If you are running ads on Amazon, you’ll come across a sea of data in your advertising console. But does […]
Have you heard of the terms copyright infringement and plagiarism? If so, then Amazon Brand gating won’t be unfamiliar to […]
In the fast-paced world of e-commerce, where shoppers are bombarded with choices, standing out on platforms like Amazon is paramount […]
Are you planning to start an Amazon FBA store? If so, you’ll encounter a unique term – FNSKU. This seemingly […]
Introduction As an Amazon seller, you understand the power of reviews. They’re the lifeblood of trust and conversion on the […]
Are you struggling to get Amazon reviews on your product? Well, you are not alone! Reviews are the backbone of […]
Are you tired of bland Amazon product listings failing to grab attention? In today’s competitive online marketplace, standing out is […]
As an Amazon seller, understanding how your brand performs throughout the customer journey is vital for success. However, until recently, […]
As an Amazon seller, optimizing your business and maximizing profits relies heavily on data analysis. One invaluable tool for gaining […]
Are you struggling to get noticed on Amazon’s massive platform? Do your products get lost in a sea of similar […]
For any Amazon seller getting into the world of sponsored advertising, understanding the Advertising Cost of Sale (ACoS) is crucial. […]
A well-executed product launch on Amazon can be the key to unlocking success and gaining a competitive edge. As the […]
In the ever-evolving landscape of e-commerce, distinguishing between keywords and search terms is vital for optimizing product visibility and driving […]
Ever felt like you are throwing darts in the dark when it comes to your marketing efforts outside Amazon for […]
Amazon, the e-commerce giant, has successfully concluded a robust business year with outstanding performance in quarter 4. The most recent […]
Picture this: you have a great product on Amazon, but it’s not selling well despite having attractive images and a […]
The advertising landscape is evolving, and viewers are rapidly migrating from traditional cable TV to streaming platforms. This presents a […]
Feeling lost in the Amazon discount jungle? Struggling to reach the right customers and entice them to make the purchase? […]
Are you losing your product in the deep ocean of Amazon product listings? Want your product to stand out, rank […]
For years, Amazon sellers were in the dark. They couldn’t see what keywords customers were using to find their products, […]
Selling on Amazon can be tough with so many others doing the same in your category. That’s why it’s super […]
For Amazon sellers, understanding their customers has often felt like navigating a maze without a map. The missing link? A […]
Have you ever felt like your Amazon advertising campaigns are lost in a tangled jungle of keywords? You’re not alone. […]
When did you last give your Amazon PPC account a checkup? Regular Amazon PPC audits are crucial to ensure the […]
Embarking on the path of online selling? If so, you’re likely aware that Amazon is your ultimate destination. With a […]
Ever felt like your product is lost in the vast Amazon jungle? You’re not alone. With millions of shoppers actively […]
Amazon Sellers selling on the Amazon marketplace usually utilize Amazon advertising without keeping a close eye on the TACoS metric. […]
The rush of Black Friday and Cyber Monday might be over, but the opportunity for continued sales growth extends beyond […]
In the fierce Amazon advertising domain, where competition rises and costs increase, understanding and keeping track of the right metrics […]
Have you ever felt the frustration of campaigns going out of budget, leading to missing out on potential sales, or, […]
Amazon PPC campaigns can be a powerful tool for driving traffic and sales to your products. However, without proper structure, they […]
Whether you are creating a new advertising campaign or optimizing existing ones, doing it manually from the Amazon ad console […]
Want to know what search terms people use to visit or purchase your product on Amazon? If yes, you’re in […]
When you are spending dollars or even more to get a click on your Amazon ads, you want to ensure […]
Are you an Amazon seller looking to maximize your profits and minimize your advertising costs? If so, you’re not alone. Many […]
Are you exclusively relying on traditional metrics such as CTR, CPC, CVR, or ROAS to make your campaign optimization decisions? […]
Navigating the ever-evolving landscape of Amazon’s online marketplace is essential for any seller looking to thrive on the platform. Among […]
As the holiday season approaches, businesses are gearing up for the highly anticipated Q4 rush. To ensure a successful Q4, […]
Do you regularly review your Amazon advertising reports? If not, you may be missing out on numerous opportunities. Amazon […]
Whether you’ve just launched a new product or have been selling on Amazon for a while, advertising on the platform […]
Amazon PPC bidding strategies that you choose play a significant role in the success of your Amazon Ads campaigns. As […]
Have you ever heard of a “catch-all campaign”? This single campaign can generate extra sales for you at a very […]
Amazon Prime Day is one of the largest global e-commerce sales events, attracting millions of customers worldwide. But how do […]
Are you looking to boost your brand’s visibility and drive more sales on Amazon? Look no further than Amazon Sponsored […]
Succeeding on Amazon in 2024 isn’t easy. Just listing your products and hoping for the best won’t work anymore. You […]
Are you bidding the same amount for all your ad placements on Amazon? If yes, then you’re missing out on […]
Whether you are looking to boost product discovery or target audiences further down the sales funnel who have already engaged […]
We, at Adbrew catalyze millions of dollars of ad spend monthly through our platform, with Sponsored Product Ads being […]
Do you want to know how many clicks you should give a search term before adding it as negative in […]
Think of your product listing as a guiding light on the Amazon marketplace. It’s your chance to grab attention, tell […]
It is no longer a secret that shopping behavior on Amazon varies over the day. This is the reason why […]
Are you struggling to get the most out of your advertising budget on Amazon? Do you find that your campaigns […]
Ever run an Amazon Ad campaign and wondered why some sales weren’t directly linked to the products you advertised? That’s […]
If you’re managing Amazon PPC ads, it’s essential to have an effective and organized approach for target harvesting and movement. […]