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Published: February 27, 2017
Last updated: April 06, 2026
Marissa Incitti leads research and content at Feedvisor focused on Amazon, Walmart, and the broader e-commerce marketplace ecosystem. Her work covers retail media performance, pricing strategy, and how AI-driven discovery is reshaping how brands compete across marketplaces. Prior to Feedvisor, she worked in content leadership roles at a Fortune Global 500 omnichannel commerce technology company.
Most sellers track the 365-day mark for long-term storage fees. That threshold hasn’t existed since 2022. Amazon renamed the fee to the Aged Inventory Surcharge, dropped the trigger to 271 days, switched from semi-annual to monthly billing, and - as of January 2026 - doubled the 12-15 month rate and added a steeper 15+ month tier. If you’re still managing inventory around the old calendar, you’re probably already paying surcharges you didn’t expect.
The real kicker: Amazon charges whichever is higher - per-unit or per-cubic-foot. For compact products under 0.1 ft³ per unit, the per-unit fee almost always wins, which means your surcharge is driven by unit count, not physical size. For bulky items, the cubic-foot fee dominates. Knowing which formula applies to your catalog changes how you prioritize removals.
| Inventory Age | Per-Unit Fee | Per-Cubic-Foot Fee |
|---|---|---|
| 271-365 days | Varies by category | Varies by category |
| 12-15 months | $0.30/unit | $6.90/ft³ |
| 15+ months | $0.35/unit | $7.90/ft³ |
Amazon charges the greater of the two fees for each ASIN. That “greater of” clause matters more than most sellers realize. A product occupying 0.05 ft³ per unit? At 50 units in the 12-15 month tier, the per-unit math gives you $15.00 while the per-cubic-foot math gives you $17.25. You pay the $17.25. But scale that to 500 units of a larger product at 0.3 ft³ each, and per-cubic-foot hits $1,035 vs. $150 per-unit. The gap widens fast with volume and size.
What changed in January 2026: The 12-15 month rate doubled from $0.15 to $0.30 per unit. The 15+ month tier is entirely new - previously all inventory over 12 months paid the same rate. Amazon is squeezing harder on the oldest stock.
Amazon uses FIFO (first-in, first-out) accounting. The oldest units of each ASIN are assumed sold first, so your newest shipments don’t start the clock over. The surcharge is calculated per ASIN on each monthly assessment date at every fulfillment center where you have inventory.
Here’s what that looks like in practice. Say you have 100 units of a product at 0.05 ft³ each:
| Tier | Units | Per-Unit Total | Per-Ft³ Total | You Pay |
|---|---|---|---|---|
| 12-15 months | 50 | $15.00 | $17.25 | $17.25 |
| 15+ months | 30 | $10.50 | $11.85 | $11.85 |
Monthly surcharge: $29.10. Over a year, that’s $349.20 on inventory that might be worth less than $500. Run the math on your own aged ASINs - if the annual surcharge exceeds 50% of the inventory’s liquidation value, you’re paying Amazon to store something you should have pulled months ago.
These are separate fees. Both apply simultaneously to aged inventory.
Regular monthly storage (all FBA inventory from day one): - January-September: $0.78/ft³ - October-December: $2.40/ft³
Aged inventory surcharge (additional, 271+ days only): $0.30-$0.35/unit or $6.90-$7.90/ft³.
For a standard-size product at 0.05 ft³, regular storage costs about $0.04/month. The aged surcharge adds $0.30+ per unit. That’s a 7-10x multiplier once inventory crosses the threshold. For slow movers, the surcharge becomes the dominant cost - not storage, not referral fees, not fulfillment. The surcharge.
This is the decision most sellers get wrong. They either panic-remove everything approaching 271 days or ignore the surcharges until they’ve bled hundreds in fees. The right answer comes down to one comparison: monthly surcharge versus removal cost plus lost opportunity.
Take a product selling at $25 with a removal cost of $1.50 per unit. At the 12-15 month surcharge of $0.30/unit, you can absorb 5 months of fees before removal becomes cheaper ($1.50 ÷ $0.30). But if the product has even a 10% chance of selling each month at full margin, keeping it in FBA still wins. The math tilts toward removal only when sell-through drops below 1.0 for 90+ days and no promotional lever is left to pull.
Seasonal inventory is the big exception. If you’re sitting on 300 units of a product that historically triples its sales velocity in Q4, eating $0.30/unit through September costs $270 - a rounding error if your Q4 margin is $8/unit on 300 sales. Remove that same inventory in August and you’ve thrown away $2,400 in potential margin to save $270 in surcharges. Context matters more than blanket rules here.
The worst move is doing nothing and letting Amazon choose for you - which, since September 2025, means liquidation at 5-10% of retail.
Stop Paying Surcharges on Inventory That Should Be Selling
Feedvisor’s AI-driven repricing accelerates sell-through on aging inventory before surcharges hit - adjusting prices dynamically based on demand, competition, and your margin floors.
Learn How Feedvisor Protects Your Margins →Price aging inventory aggressively early. Don’t wait for 271 days. At 180 days with sell-through below 1.5, drop your price to break-even minus the projected surcharge. A sale at thin margin beats months of escalating fees.
Right-size reorders. The cheapest surcharge is the one you never incur. If a product’s average sell-through is 2.0, don’t ship 6 months of supply. Ship 8-10 weeks and reorder more frequently. Yes, inbound shipping costs go up slightly - but they’re a fraction of aged inventory surcharges.
Run promotions by day 240. A 15% coupon on a $25 product costs you $3.75 per unit. If you need to clear 50 units, that’s $187 in coupon discounts. Compare that to six months of surcharges at $0.30/unit on those same 50 units - $90 - plus the fact that you still own dead stock at the end. The coupon costs more upfront but actually moves the problem. Amazon Outlet is another lever: it surfaces aging inventory to deal-seeking buyers and can spike velocity enough to avoid the threshold entirely.
Set automated removal rules. In Seller Central (Settings > Fulfillment by Amazon), configure automated removal for inventory approaching the threshold. Choose return-to-seller or liquidation - don’t leave the default, which is now liquidation.
Push Sponsored Products on ASINs approaching 200 days. At $1.00 CPC and a 10% conversion rate, clearing 50 units costs roughly $500 in ad spend - steep if your margin is under $8/unit, but worthwhile if pre-ad margin sits above $12. The alternative is paying $0.30/unit/month in surcharges while the inventory ages further and your options narrow.
| Option | Fee Range | What You Get Back |
|---|---|---|
| Return to seller | $0.84-$2.89 (standard), $3.12-$14.32 (oversize) + $1.06/lb over weight threshold | Full inventory, resell elsewhere |
| Liquidation | Liquidation fee + 15% referral | 5-10% of regular price |
| Donation | Standard disposal fees | Tax deduction certificate |
| Disposal | Same as return fees | Nothing (may be recycled/donated by Amazon) |
Return-to-seller makes sense when your product has resale value through other channels - your own site, eBay, wholesale. Liquidation is the pragmatic choice when removal fees would exceed what you’d recover reselling. Donation gives you a tax write-off that may be worth more than liquidation proceeds on low-value items.
Removal orders take 1-3 months to process - longer during Q4. If you’re removing to avoid surcharges, start the order at least 60 days before the threshold.
If you haven’t touched your automated removal settings, Amazon will liquidate your aged inventory by default. This changed on September 30, 2025. Amazon also made donations mandatory for items it deems eligible - you can’t opt out.
What this means in practice: go to Settings > Fulfillment by Amazon in Seller Central and set your automated removal preference to Return or Liquidate - whichever matches your resale capability. Then pull the Inventory Health Report and build a 30/60/90-day action plan for every ASIN over 200 days. Waiting is no longer neutral - Amazon will decide for you, and the decision won’t favor your margins.
Amazon renamed them to the Aged Inventory Surcharge in 2022. Same concept, lower threshold (271 days vs. the old 365), monthly billing instead of semi-annual.
For 2026: $0.30/unit or $6.90/ft³ for inventory aged 12-15 months, and $0.35/unit or $7.90/ft³ for 15+ months. Amazon charges whichever is higher. The 271-365 day tier varies by category.
Pull the Inventory Health Report (Reports > Fulfillment > Inventory Health) and filter for items over 200 days. The Recommended Removal Report flags items nearing the 271-day threshold specifically.
No. That courtesy waiver has been phased out. All units aged beyond 271 days are subject to the surcharge.
Depends on the product. At $0.30/unit per month (12-15 month tier) and a removal fee of ~$1.50, you break even after 5 months. If the product has any realistic chance of selling, keeping it may be smarter. If sell-through is near zero, remove immediately.
Your Aged Inventory Is Bleeding Money Every Month