At present, Amazon only charges monthly storage fees and long-term storage fees, and the specific fees are mainly related to the volume of the product and the time it is stored in the FBA warehouse. The following is for reference only, the official announcement shall prevail
Monthly storage cost:
According to Amazon’s policy, the monthly inventory storage fee is charged according to the average daily volume of the space occupied by the seller’s inventory in the fulfillment center (in cubic feet, length x width x height (in inches)).
The volume of the goods is measured according to the Amazon FBA policy and the dimensions of the goods that are properly packaged and ready to be shipped. Amazon generally charges the inventory storage fee of the previous month between the 7th and the 15th of the following month. For example, to view inventory storage fees for January, a seller can view a payment report containing transaction information from February 7th to 15th.
The monthly storage fees are charged as follows:
From January to September, standard-size products cost $0.69 per cubic foot; large-size products cost $0.48 per cubic foot.
From October to December, standard-size products cost $2.40 per cubic foot; large-size products cost $1.20 per cubic foot.
Because October-December is the peak season of the Amazon platform, monthly storage costs will be higher.
Long-term storage costs:
FBA long-term storage fee: On the 15th of each month, Fulfillment by Amazon (FBA) will perform inventory counting. On this date, Amazon will charge a long-term storage fee (LTSF) of $6.90 per cubic foot for inventory that has been stored in the U.S. fulfillment center for more than 365 days, or a long-term storage fee of $0.15 per item (whichever is greater) .
How to determine the inventory that needs to pay for long-term storage costs?
Sellers can use inventory age and inventory status reports to determine which ASINs in inventory are subject to long-term storage fees.
How to avoid long-term storage fees?
Actively managing over-age inventory can help sellers avoid long-term storage fees. To remove over-aged inventory before the next inventory count date, sellers can do the following:
1. Submit a removal order and move the goods out to a third-party overseas warehouse. If the product can continue to be sold, you can re-create the shipping plan for replenishment according to the sales data.
2. Set automatic removal for inventory that needs to pay long-term storage fees. When setting up this function, the seller must make sure that these products are not needed. The seller of the products that are automatically removed will not get any compensation, and they need to pay a certain removal fee.
In short, FBA storage costs are one of the important costs of operating Amazon, and it is very important to control this link. Sellers should always pay attention to this part of the details and replenish goods reasonably during the operation process. For products that have not been pushed up, or products that are in a period of decline in sales, sellers must find ways to deal with unsold inventory in a timely manner. Withdraw cash flow in time, you can put into the next product creation faster.
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