FBA's Upcoming Long-term Storage Fee for Inventory Cleanup

Fulfillment by Amazon (FBA) will be issuing another long-term storage fee to aid in inventory cleanup on October 15, 2020. We previously mentioned this same fee prior to its September implementation date.

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

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

The Recommended Removal Report is a helpful resource that 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' in Seller Central.

Freeing up valuable inventory space in this manner can then be allocated for top-selling and profitable items. Considering how essential it is to accurately optimize inventory throughout the happenings of Q4, utilizing this space in effectively is especially important.

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