An inventory cleanup is a regularly scheduled assessment program run by Amazon. During this cleanup, the system evaluates which products have been within a seller’s inventory listing for more than 365 calendar days. Items that have been within the system for at least that long will be charged a nominal Long-Term Storage Fee.
The Long-Term Storage Fee that is charged during this sweep is $22.50 per unit, though certain restrictions do apply. Inventory cleanup is done regularly twice a year on the fifteenth of February and then again on the fifteenth of August.
Staying Ahead of Inventory Cleanup
Sellers who wish to avoid the Long-Term Storage Fee can set their inventory to be assessed prior to the scheduled inventory cleanup. Using the Recommended Removal Report, the seller will be notified of which products have been in his inventory longer than the allotted time. The seller will then be given the opportunity to remove the items from his inventory prior to the inventory cleanup, thus avoiding the Long-Term Storage Fees.
Sellers can also use the Inventory Health Report to evaluate how long items have been in the seller’s listings and whether or not these items should be removed from the inventory.