Long-Term Storage Fees
Long-Term Storage Fees are charges accrued by the seller holding a Fulfillment By Amazon (FBA) account. These items are only charged once the units have been stored for more than a full calendar year, that is, over 365 days in a row.
How to Calculate Long-Term Storage Fees
The way Amazon calculates the Long-Term Storage Fees is as follows:
- Assess the amount of items being stored at the Amazon fulfillment center. This can be done simply by subtracting the amount of items that were sold from the total amount of units originally stored at the center. Alternatively, a report can be printed from the Reports tab within the Seller Account section.
- Multiply the number of cubic feet currently in storage by $22.50, the per cubic feet fee for long-term storage items.
- Multiply this amount by the number of units that are in the storage facility at the time of the assessment, and this will be the total charge amount.
Important Information About Long-Term Storage Fees
- Due to these Long-Term Storage Fees, Amazon works on a first come, first served basis. This means that, according to the accounting system, the item that was in the fulfillment center longest will be sold regardless of which item is actually shipped.
- Amazon does an inventory cleanup on the fifteenth of February and fifteenth of August of every year. Any items that have been within the fulfillment center for more than 365 days are charged the Long-Term Storage Fee.
- Amazon will send the seller a letter of notification, informing him of the units that are going to be falling under the Long-Term Storage Fee category prior to the semi-annual sweep. Sellers are encouraged to use the report provided by Amazon known as the Recommended Removal Report to ensure that items are not left longer than 365 and, therefore, do not incur this fee. This report will inform sellers six weeks in advance of a Long-Term Storage Fee cutoff date. Alternatively, the seller can use the Inventory Health Report to keep tabs on the current state of his inventory.
Note: In the event that the seller’s entire inventory has been held for longer than the 365 days allotted, Amazon will waive the Long-Term Storage Fees for one unit of each ASIN grouping as a professional courtesy. Additionally, any items that have already been scheduled to be removed from the fulfillment center through a Removal Request before the assigned cleanup dates will not be charged these fees.