Amazon FBA fee structure: Shipping costs + Storage costs + other costs. Among them, warehousing costs are divided into long-term storage fees and month storage fees.
Long-term storage fees definition
Amazon FBA long-term storage fees is an additional expense to the monthly inventory storage fees. On the fifteenth of every month, Freight Forwarding and Logistics Amazon (FBA) performs an inventory reconciliation.
At this time, Amazon will charge a long-term storage fee of $6.90 per cubic inch, or per piece, for inventory that has been stored at an Amazon Operations Center in the United States for more than three hundred and sixty-five days.
How to calculate Amazon long-term storage fees?
Items that do not exceed 45 inches (approximately 114 cm) in width, height, and length and weigh less than 15.4 pounds (approximately 7 kg):
If they have been in long-term storage for more than six months, they will incur a long-term storage fee of 15 cents per unit per month.
Merchandise that does not exceed 45 inches (approximately 114 centimeters) in width, height and length, but weighs more than 15.4 pounds (approximately 7 kilograms):
If it is in long-term storage for more than 6 months, then each unit will incur a long-term storage fee of 30 cents per month.
Merchandise that exceeds 45 inches (approximately 114 centimeters) in width, height, and length by one dimension but weighs less than 15.4 pounds (approximately 7 kilograms):
If it is in long-term storage for more than 6 months, then each unit will incur a long-term storage fee of 75 cents per month.
Merchandise that is more than 45 inches (about 114 cm) in width, height, and length and weighs more than 15.4 pounds (about 7 kg):
If it has been in long-term storage for more than 6 months, then each unit will incur a long-term storage fee of $48 per month.
If you want to know more about it, click on Amazon Seller Center.
If you want to know more details about calculating Amazon long-term storage fees, you can click on this article:
When are Amazon long-term storage fees assessed?
Long-term storage fees are charged for those items that are stored for more than 365 days. Amazon long-term storage fees will be assessed on the 15th of each month, the cost standard: more than 365 days of inventory at $6.90 per cubic foot, or $0.15 per item to collect monthly long-term storage fees.
Recently, Amazon overseas warehouse fees have increased again, resulting in merchants’ operating costs have increased a lot more, they say that Amazon overseas warehouse fees are too expensive, Amazon sellers should learn tips for minimizing Amazon long-term storage fees.
If you don’t want to just read these text interpretations, you can click on the video below to help you understand more quickly about the Amazon FBA fee structure：
How to reduce Amazon storage fees
Consider sales strategy when stocking up inventory
When a seller launches a new product, stock up a small amount of inventory in the Amazon warehouse until you calculate how fast the product will sell. Avoid stocking inventory in the warehouse that won’t sell out within 6 months.
Stockpile inventory outside of the Amazon warehouse
By placing products in a place where they can be easily shipped, sellers only need to put a small amount of inventory in the Amazon warehouse to minimize warehousing costs, while also being able to quickly send products to the Amazon warehouse to avoid running out of stock.
Promote products that are about to reach 6 or 12 months of inventory
Promotional activities for some products that meet the long-term liquidation twice a year to boost sales.
Optimize listing page
Optimize each element of the product detail page to drive sales. Picture quality and product descriptions are key to optimize, and optimizing product reviews is also a great way to drive sales.
Create remove products, clean up the inventory
If all the above methods fail, you can try to consider dealing with some inventory products. Create a removal product, let Amazon return the product, or just destroy it.
Here is also more information about Amazon storage fees. To view, please click:
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