Fulfillment by Amazon (FBA) Long-term Storage Fee for Inventory Cleanup

Coming on September 15, 2020, Fulfillment by Amazon (FBA) will be issuing a long-term storage fee to aid in inventory cleanup.

Amazon moves inventory on a “first in, first out” basis to deduct items from inventory that have been there the longest.

Inventory that has been in US fulfillment centers for more than 365 days incurs a long-term storage fee of (whichever is greatest from below):

$6.90 USD per cubic foot

OR

$0.15 USD per unit

GO recommends taking advantage of the free removal and return of excess inventory available from Amazon FCs.

On an ongoing basis, we would advise you to utilize the Recommended Removal Report, which calculates, on an ASIN-by-ASIN basis, the number of items you should remove to avoid fees (assuming no further sales). This can also be done via the Inventory Age and Inventory Health Reports. 

Seller Central clients have an opportunity to free up valuable inventory space, which can then be allocated for top-selling and profitable items. Considering current replenishment shipment limitations, utilizing this space is even more essential. 

Work with your GO team to determine opportunities to clean up your inventory and successfully prepare for each quarterly long-term storage fee date.

See Amazon’s full announcement:

“September 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.”