What is Long-term Storage Fee? Long-term Storage Fee Review, Features

Amazon FBA Long-Term Storage Fee is an additional fee to the monthly inventory storage fee. On the 15th of each month, Amazon Logistics (FBA) will conduct an inventory cleanup. On this date, Amazon will charge a long-term storage fee (LTSF) of $6.90 per cubic foot for inventory that has been stored in Amazon's US fulfillment centers for more than 365 days, or a long-term storage fee per piece (whichever is higher).

Rule changes

-Prior to April 2018, Amazon long-term storage fees were charged twice a year: February 15th and August 15th.

- Effective April 1, 2018, monthly inventory storage fees for standard-size and oversized items will increase by $0.05 per cubic foot. This change will first be reflected in storage fees incurred in April that will be charged in May 2018.

-After August 15, 2018: The storage assessment date is the 15th of each month, and items that have been in a fulfillment center for 365 days or more will be charged $0.50 per unit per month.

- Starting September 15, 2018, long-term storage fees will be adjusted and the assessment date will be changed from semi-annual to monthly.

Cost Comparison

After September 15, 2018:

6-12 months: $3.45/month

12 months and above: $6.90/month

Minimum long-term storage fee

For items that have been in an Amazon fulfillment center for more than 365 days, a monthly per-unit long-term storage fee is charged. Prior to February 15, 2019, the minimum per-unit long-term storage fee for items that have been in a fulfillment center for more than 365 days was $0.50 per unit. Starting February 15, 2019, the minimum per-unit long-term storage fee is $0.15.

How to determine product inventory time

The first method:

First, find the “Inventory” option in Seller Central and click “Manage Inventory”.

Click Inventory Dashboard.

Scroll down to “FBA Inventory Age” and click “View Details”. Here, sellers can see the estimated long-term storage fees and inventory age.

The second method:

In Seller Central, find “Reports” and click the “Fulfillment” option.

Under the "Inventory" column on the side, click "Show More", and then click "Inventory Health."

This report will show the products that are estimated to be subject to long-term storage fees in June and December, as well as the estimated long-term storage fees.

Where to find all the information on the long-term storage fee waiver

Search for the "Long-term Storage Fee Compensation" promotion help page in the seller backend to see the complete information of this promotion, including the eligibility terms and conditions, which you can read carefully.

How to Avoid Long-Term Storage Fees

1. Replenishment should be scientific and timely.

2. Use overseas warehouses to stockpile inventory.

3. Reduce prices and promote inventory products that are about to reach 6 months or 12 months through promotions, flash sales, off-site promotions, etc.

4. Create a removal order or multi-channel inventory and sell it to other platforms. You can also clear it to overseas warehouses and then re-enter the warehouse.

5. If it is of low value, destroy it directly.

FAQ

Q: Do I need to check my inventory every day for long-term storage fees?

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 nearly six months to submit a removal request or sell your items before August 15th before you are charged a long-term storage fee. All inventory is stored on a first-in, first-out (FIFO) basis.

Q: What happens if some of my inventory has been in an Amazon fulfillment center 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. No long-term storage fees are charged for products that have been in a fulfillment center for less than six months. Amazon Logistics processes 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 the fulfillment center the longest and sell or remove it, regardless of the actual product being delivered or removed.

Q: If the product is stored in the fulfillment center for more than 12 months, will the long-term storage fee be charged twice? In other words, will the fee of $11.25 per cubic foot and $22.50 per cubic foot be charged at the same time?

A: No, we do not evaluate a single item for both 6 months and 12 months. Inventory is divided into three categories: * Inventory that has been in Amazon fulfillment centers for less than six months as of the inventory cleanup date (no fee) * Inventory that has been in Amazon fulfillment centers for 6 to 12 months as of the inventory cleanup date (a fee of $11.25 per cubic foot) * Inventory that has been in Amazon fulfillment centers for 12 months or more as of the inventory cleanup date (a fee of $22.50 per cubic foot).

Q: If I have two different CDs stored at 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.

Q: 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 long-term storage fees, sellers must submit a removal request, but they do not have to complete it. Inventory in sellable condition will continue to be sellable until the removal is completed. Amazon will not charge you for removed inventory unless the inventory has been returned or disposed of.

Q: Is the long-term storage fee a replacement for the monthly inventory storage fee or in addition to the monthly inventory storage fee?

A: The long-term storage fee is an additional fee to the monthly inventory storage fee. The monthly inventory storage fee will continue to be charged every month. In addition to the monthly storage fee, 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).

Q: If an item 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.

Q：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.

Q: Are products that have been charged long-term storage fees still available for purchase?

A: Yes. Although these products are moved to another location in the fulfillment center, they are still available for purchase by customers and can enjoy Amazon Prime service and free shipping.