Date Effective: October 15, 2020
For: Amazon FBA Inventory
Any FBA Inventory that has been in the Fulfillment Center (FC) for one year or more will be assessed a Long-term Storage Fee on October 15, 2020.
The Full update
October 15, 2020 is Fulfillment by Amazon’s (FBA’s) next scheduled long-term storage fee inventory cleanup. On this date, inventory that has been in US fulfillment centers for more than 365 days incurs a long-term storage fee of $6.90 USD per cubic foot or a $0.15 USD per-unit long-term storage fee, whichever is greater.
The long-term storage fee is in addition to the monthly inventory storage fee.
FBA calculates inventory age on a first-in, first-out basis across the entire fulfillment network. Items sold or removed are deducted from the inventory that has been in the fulfillment network the longest, regardless of which unit was actually shipped or removed.
The Recommended Removals report automatically calculates, on an ASIN-by-ASIN basis, the number of items you would have to remove to avoid long-term storage fees—assuming no further sales. You may also use the Inventory Age and Inventory Health reports to identify the age of inventory by ASIN.
If you remove units of an ASIN that would be subject to long-term storage fees at the next inventory cleanup date, you won’t be able to send us more units of that ASIN for three months after that date. The exception is your inventory of that ASIN falls below our projection of its sales for the next eight weeks.
For further details, see FBA long-term storage fees.
Your normal monthly storage fee could potentially increase due to this annual surcharge
What should I do next?
Visit the FBA Inventory Age page in Seller Central. You will need to be logged in to your Amazon seller account. From there you can see the age of each item in your inventory, as well as how much the potential LTSF will be. With a few clicks you can create sales for slow moving inventory, or create removal orders.
Remember, it is only $0.15 to dispose of an item, or a little more to have it shipped back to you, but the cost for letting it sit may be substantially higher with the LTSF ($6.90/cubic foot).
Source URLs: (you may need to be logged in to view these)
Subscribe to Essential Updates
for more resources, tips, and strategies to help grow your online business.