Amazon FBA long-term storage fee
What are Amazon FBA long-term storage fees?
Amazon FBA long-term storage fees are in addition to the monthly inventory storage fees. Every February 15th and August 15th, Amazon Logistics will conduct an inventory cleanup. During these two days, inventory that has been in Amazon fulfillment centers for between six and 12 months will be assessed a long-term storage fee of $11.25 per cubic foot.
Amazon assesses a long-term storage fee of $22.50 per cubic foot for products that have been in an Amazon fulfillment center for more than 12 months as of the inventory cleanup date.
How are Amazon FBA long-term storage fees calculated?
The fee amount for each SKU is calculated as follows:
[Items stored in the fulfillment center for 6 to 12 months:] (6-month long-term storage fee) = (number of items subject to 6-month long-term storage fee) x (unit volume) x $11.25
[Items stored in a fulfillment center for 12 months or longer:] (12-month long-term storage fee) = (number of items subject to 12-month long-term storage fee) x (unit volume) x $22.50
European FBA long-term storage fees:
Starting from August 15, 2017, Amazon will charge a six-month long-term storage fee of 500 euros per cubic meter for products stored for 6-12 months; a long-term storage fee of 1,000 euros per cubic meter will be charged for products stored for more than 12 months.
On February 15, 2017, Amazon only charged a long-term storage fee of 1,000 euros per cubic meter for products that had been stored for more than 12 months.
Long-term storage fee example
Frequently asked questions
Q1: Do I need to check the inventory that will be charged long-term storage fees every day?
A: No. Long-term storage fees are charged twice a year: February 15th and August 15th. For example, if your inventory has been in a fulfillment center for six months as of February 15th, you have almost six months until August 15th to submit a removal request or sell the items before you are charged long-term storage fees. All inventory is on a first-in, first-out (FIFO) basis.
Q2: What happens if some of my inventory has been in Amazon’s fulfillment centers for more than six months and some for less than six months?
A: Amazon only assesses long-term storage fees for products that have been in a fulfillment center for six months. We do not charge long-term storage fees for units that have been in our fulfillment centers for less than six months.
Amazon Logistics handles inventory on a first-in, first-out basis throughout its distribution network. This means that to determine how long inventory has been in a fulfillment center, we will deduct the type of inventory that has been in a fulfillment center the longest and sell or remove it, regardless of what was actually shipped or removed.
Q3: If the goods are stored in the fulfillment center for more than 12 months, will the long-term storage fee be charged twice? In other words, will the fees of US$11.25 per cubic foot and US$22.50 per cubic foot be charged at the same time?
A: No, we do not conduct both 6-month and 12-month evaluations on a single product. Inventory is divided into three categories:
* Inventory that has been in an Amazon fulfillment center for less than six months as of the inventory cleanup date (no fee will be charged)
* Inventory that has been in an Amazon fulfillment center for 6 to 12 months as of the inventory cleanup date ($11.25 per cubic foot)
* Inventory that has been in an Amazon fulfillment center for 12 months or longer as of the inventory cleanup date ($22.50 per cubic foot)
Q4: If I have two different CDs stored in an Amazon fulfillment center for more than a year, do I need to pay $22.50 for each CD?
A: No, the fee will be charged per cubic foot, not per piece.
Q5: Does the removal need to be completed before the inventory cleanup date to avoid long-term storage fees, or can I just submit a removal request?
A: To avoid incurring long-term storage fees, sellers must submit a removal request, but they are not required to complete it. Inventory in sellable condition will continue to be sellable until removal is complete. Amazon does not charge you for removed inventory unless the inventory is returned or disposed of.
Q6: Is the long-term storage fee a replacement for the monthly inventory storage fee or an additional fee to the monthly inventory storage fee?
A: Long-term storage fees are in addition to the monthly inventory storage fees. Monthly inventory storage fees will continue to be charged each month. In addition to the monthly storage fees, Amazon will charge long-term storage fees on February 15 and August 15 for inventory that has been stored in the fulfillment center for more than six months (including six months).
Q7: If the product is sold soon after paying the long-term storage fee, will part of the fee be refunded?
A: No. Long-term storage fees will be charged in advance.
Q8: When does the age of goods begin to be calculated?
A: The fee starts from the day the goods are received by the fulfillment center.
Q9: Are products that have been charged long-term storage fees still available for purchase?
A: Yes. Although the products were moved to another location in the fulfillment center, they are still available for purchase by customers and are eligible for Amazon Prime service and free shipping.
