A Complete Guide to Amazon Long-Term Storage Fees for Sellers

Navigating the world of Amazon selling can be challenging, especially when understanding the various fees involved. One key aspect that every seller should be aware of is the “aged inventory surcharge,” formerly known as Amazon’s long-term storage fees. These charges apply to products stored in Amazon’s fulfillment centers for an extended period.

Understanding how Amazon’s long-term storage fees work is crucial for maintaining optimal inventory levels, improving your selling strategy, and ultimately boosting profit margins. This guide covers how to calculate these fees, recent changes, and actionable strategies to reduce storage costs while maximizing your profits.

What Are Amazon Long-Term Storage Fees?

Amazon applies the aged inventory surcharge (formerly long-term storage fees) to FBA sellers who store products in its warehouse for more than 181 days. These fees serve as an incentive for sellers to manage their inventory effectively and avoid excess storage charges.

Key Changes: From Long-Term Storage Fees to Aged Inventory Surcharge

As of April 15, 2023, Amazon updated the structure of long-term storage fees, now referred to as the aged inventory surcharge. Here’s the overview of what has changed:

• Terminology Update: The term “long-term storage fees” has been updated to “aged inventory surcharge.”
• New Fee Tiers: Previously, long-term storage fees only applied to items stored for more than 271 days. Now, Amazon charges fees for products stored for more than 181 days.

New Fee Tiers (Effective April 15, 2023)

Item Age	Previous Fee	Current Fee ( as of April 2023)
181-210 days	$ 0	$0.50 per cubic foot
211-240 days	$ 0	$1.00 per cubic foot
241-270 days	$ 0	$1.50 per cubic foot

Increase in Fees for Products Stored 271-365 Days

The fee increase for items stored 271 days or longer is significant. Here’s how the fees have changed:

Item Age	Previous Fee	Current Fee ( as of April 2023)
271-300 days	$1.50 per cubic foot	$3.80 per cubic foot
301-330 days	$1.50 per cubic foot	$4.00 per cubic foot
331-365 days	$1.50 per cubic foot	$4.20 per cubic foot

For items stored for more than 365 days, Amazon now imposes a surcharge of $6.90 per cubic foot or $0.15 per unit, whichever is greater.

How to Calculate Amazon Long-Term Storage Fees

To make the most of your FBA program and avoid unnecessary costs, it’s vital to know how to calculate these fees accurately.

1. Measure Your Inventory Volume: To measure product volume in cubic feet, multiply its dimensions in inches, then divide the total by 1,728.
2. Check Your Inventory Age: Use the “Inventory Age” option under the “Inventory” tab in Seller Central to see how long your products have been stored in Amazon’s fulfillment centers.
3. Identify Aged Inventory: Take note of any items that have been stored for over 181 days to avoid surcharges by removing or discounting slow-moving stock.
4. Monitor Fees: Amazon charges storage fees bi-annually, on February 15th and August 15th. These charges appear in your Seller Central account between the 7th and 15th of the following month.

8 Proven Strategies to Reduce Long-Term Storage Fees

Here are eight actionable tips to help you minimize long-term storage costs:

1. Analyze Inventory Turnover: Regularly review your sales velocity and focus on moving slow inventory faster.
2. Implement Strategic Inventory Planning: Adjust your inventory levels based on demand forecasting to avoid overstocking.
3. Forecast Demand: Use historical data and market trends to predict demand accurately and prevent excess stock.
4. Utilize Amazon’s Inventory Age and Health Reports: Monitor reports in Seller Central to identify inventory that is at risk of accruing storage fees.
5. Optimize Product Listings: Ensure your listings are SEO-optimized with high-quality images to boost visibility and sales.
6. Run Promotions: Offer discounts or bundle slow-moving items to increase sales.
7. Follow Amazon’s Removal Recommendations: Leverage Amazon’s “Recommended Removals” report to identify items for removal and reduce storage costs.
8. Liquidate Through Amazon Outlet: If necessary, liquidate aging inventory via Amazon Outlet to reduce storage fees and recover some costs.

Stay Ahead of Long-Term Storage Fees with Pro Seller Marketing

Keeping your Amazon inventory costs in check is key to maximizing your profits and staying competitive. Proactive inventory management and regular monitoring will help you avoid unnecessary fees.

Want to focus more on growing your business rather than managing storage fees? Pro Seller Marketing can help! Our team of Amazon experts offers full account management services, including inventory optimization and fee reduction strategies. Let us handle the complexities while you focus on scaling your store.

Take your Amazon business to the next level—contact Pro Seller Marketing today and start optimizing your success!