Amazon FBA storage fees are a very important aspect of running a successful e-commerce business. 

These fees, designed to manage inventory turnover and optimize warehouse space, directly impacts profitability. 

In 2024, Amazon introduced the “aged inventory surcharge” as an evolution of its long-term storage fee structure, further emphasizing the need for sellers to maintain a strategic approach to their inventory.

What are Amazon FBA Storage Fees?

Storage fees Amazon FBA are the charges sellers incur for storing their inventory in Amazon’s fulfillment centers. 

These fees are designed to ensure that inventory turnover remains efficient and that Amazon’s storage capacity is used effectively. 

As ecommerce continues to grow, managing storage costs became a necessary factor for sellers aiming to maintain profitability while scaling their businesses. 

Types of Amazon Storage Fees

There are two main types of FBA storage fees associated with Amazon FBA: monthly inventory storage fees and long-term storage fees.

Monthly Inventory FBA Storage Fees 

Monthly inventory Amazon storage fees are charged each month based on the amount of space your products occupy in Amazon’s fulfillment centers. 

These fees are calculated using the volume of inventory stored, measured in cubic feet. The exact rates for these fees depend on the time of year. 

For example, Amazon typically increases the monthly storage fees during peak holiday seasons to account for the higher volume of goods being stored in fulfillment centers. Sellers are billed for storage fees monthly, and the rate depends on the dimensions and weight of their products. 

The rate is calculated based on how much space your inventory holds, so smaller and lighter products will generally lead to lower storage fees.

Amazon FBA Long-Term Storage Fees (Aged Inventory Surcharge)

Amazon introduced long-term storage fees as a way to manage older inventory in its fulfillment centers. 

These fees apply to products that have been stored in Amazon’s warehouse for more than 365 days. The fees are calculated based on the volume of items stored, and they are applied in addition to the regular monthly storage fees. 

Starting in 2024, Amazon has introduced an aged inventory surcharge, designed to further incentivize sellers to move inventory quickly. 

Products that remain unsold for long periods and occupy space in Amazon’s warehouse for over a year will lead to higher fees, making it necessary for sellers to regularly review their inventory and adjust pricing strategies accordingly. 

How to Avoid Long-term Storage Fees?

To avoid Amazon long term storage fees, sellers need to be proactive about managing their inventory. A few strategies to reduce or avoid these fees include conducting regular inventory audits, optimizing your listings to ensure products are selling, and using promotions to clear older inventory. 

Sellers can also use Amazon’s inventory health reports to identify slow-moving items and take action to move them more quickly. 

Moreover, using Amazon’s removal or disposal services allows sellers to remove unsold inventory from Amazon’s warehouses, which prevents long-term storage fees from being applied. 

How to Calculate Amazon FBA Storage Fees?

To calculate Amazon FBA storage fees, sellers need to assess the volume of their products and the amount of space they occupy in Amazon’s fulfillment centers. The Amazon FBA storage fees calculator can be a useful tool for estimating storage costs based on products dimensions and weight. 

Monthly storage fees are calculated per cubic foot, so understanding the volume of your products and the expected time they will remain in Amazon’s warehouse is important to managing these costs effectively. 

During peak seasons, sellers might face higher rates, so it’s important to plan ahead and adjust inventory levels accordingly. 

How to Save on Amazon FBA Storage Fees

1. Optimize Inventory Management

One of the best ways to minimize storage fees is by optimizing inventory levels to match demand, which involves analyzing sales trends and using tools like Amazon’s Inventory Performance Index (IPI) to make sure that only fast-moving products are stored in fulfillment centers. 

2. Use Amazon’s Removal Service

If certain products are not selling, it might be more cost-effective to remove them from Amazon’s warehouses and either liquidate or return them to your own storage facilities. 

3. Ship Inventory Based on Demand

Sellers should aim to ship products to Amazon fulfillment centers based on demand, avoiding overstocking during slower seasons. Amazon’s fulfillment network allows sellers to split shipments across multiple locations, which can reduce the risk of holding onto excess stock in one location. 

4. Manage Product Listings Effectively

Making sure that product listings are well-optimized with accurate descriptions, high-quality images, and competitive pricing can help reduce the likelihood of inventory stagnation. 

5. Work with a 3PL Provider

Third-party logistics and warehouse providers, such as Forceget, offer competitive prices for storing and shipping inventory.

Forceget provides fixed warehouse rates year-round, ensuring no surprise fees and consistent costs, even during peak seasons.

Amazon FBA Storage Fees FAQ

How Are Oversized Items Charged for Storage in Amazon FBA? 

Amazon defines oversized items as products that exceed a specific weight or size threshold. These items are subject to higher storage fees than standard-sized items due to the additional space they occupy in the fulfillment centers. 

The fees for oversized items are typically higher, so sellers should be aware of the dimensions and weight of their products to better plan for storage costs. 

Are There Any Seasonal Fluctuations in Amazon FBA Storage Fees? 

Yes, Amazon FBA storage fees vary throughout the year, especially during peak seasons like the holidays. 

For instance, storage fees are typically higher from October to December, as Amazon’s warehouses experience increased inventory volumes during the busy holiday period.
Sellers can plan for these fluctuations by adjusting inventory levels well in advance of seasons to avoid unnecessary costs. 

What is Aged Inventory Surcharge?

The Amazon aged inventory surcharge is an additional fee that Amazon applies to inventory that has been stored in its fulfillment centers for over 365 days. 

This surcharge is designed to encourage sellers to move older products more quickly. 

The aged inventory surcharge is in addition to the regular long-term storage fees, making it important for sellers to regularly evaluate their inventory to avoid leading to higher fees.