It’s that time again: Long-Term storage fees are going to be assessed on February 15th for items that have been in fulfillment centers for 365 days or longer.
If this is your first time dealing with Long-Term Storage Fees, here’s what you need to know:
- You’ll be charged $22.50 per cubic foot occupied by items that have been in storage for over 365 days. Note: This is NOT $22.50 per item.
- For each ASIN, one unit is exempt from the annual Long-Term Storage Fees if no units of that ASIN have been in a fulfillment center for less than 365 days.
- Use the Inventory Health Report and Recommended Removal Report to identify the inventory that is likely to be assessed these fees.
For more information, review Amazon’s official help guide to FBA Long-Term Storage Fees.
These fees can really add up and affect your bottom line. So, what can you do? It might sound simple, but if you send Amazon less inventory than you can sell in a year, you’ll never see any Long-Term Storage Fees.
Other than planning and managing your supply chain more effectively in the future, you do have options to help minimize the fees that you’re facing now:
- Discount – Many sellers discount inventory that’s about to assessed Long Term Storage Fees.
- Removal – Don’t forget that you can recall inventory to avoid these fees. You can then merchant fulfill them, sell them through another channel, or donate them to charity.
- Disposal – When the costs for a recall are too high, you can elect to have inventory destroyed.
Note: All removal and disposal orders must be placed before August 15th in order to avoid fees.
2 Responses
Thanks for the info Paul. Something to strongly consider for sellers is Sears Commerce Services. Their suite of seller services do not include any long term storage fees. It this day and age, every penny counts for business owners small and large.
Great information Paul. I just wanted to share that Sears Commerce Service’s Fulfilled by Sears does not charge any long term storage fees for sellers. It’s a great alternative for sellers or for those sellers looking to expand their reach through multiple channels.