It’s that time again: Long-Term storage fees are going to be assessed on August 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.
And don’t forget, February 15th is just around the corner. Start planning now and be ready for the next time that Long-Term Storage Fees are assessed!
3 Responses
Can someone help with a problem with Amazon Long Term Fees. I thought I signed up for automatic disposal and they said I did not and hit me with $4,400 fee a few days ago. I called and called but could not get it reversed and the items disposal of. Several of my friends are in the same problem for thousands of dollars and Amazon said they were getting high amount of calls for same. One of the Help guys said he tried to get it corrected but could not and even though he works for Amazon he said he also works for me and things I am right and Amazon is wrong. ATM is Amazon Store Front for me. Jim Polnac took out phone number to be sure it will post
Hi Jim,
We’ll have someone from our Services division get in touch with you. They specialize in this sort of thing!
-Paul