Note: Effective February 22, 2018, FBA fees have changed. For a complete list of changes, go to 2018 US FBA inventory storage fees and policy changes.
On the 15th of each month, Fulfillment by Amazon (FBA) conducts an inventory cleanup. On these dates, inventory that has been in US fulfillment centers for 181 to 365 days incurs a long-term storage fee (LTSF) of $3.45 per cubic foot. Items that have been in US fulfillment centers for more than 365 days on the inventory cleanup date incur a long-term storage fee of $6.90 per cubic foot.
Long-term storage fees
Minimum long-term storage fees
Starting August 15, 2018, items that have been in a fulfillment center for more than 365 days will be subject to a minimum fee of $0.50 per unit per month. Either the long-term storage fee or the minimum fee will apply, whichever is greater.
August 15, 2018, and after
If you have offers in the FBA Small and Light program, see the program’s help page for applicable long-term storage fees.
Long-term storage fee examples
The examples below illustrate the new minimum long-term storage fee, effective August 15, 2018, and the updated monthly long-term storage fees, effective September 15, 2018.
Inventory cleanup date: September 15, 2018 (and the 15th of each following month)
How to identify inventory subject to fees
You can use the Inventory Age and Inventory Health reports to identify which ASINs in your inventory are subject to long-term storage fees. For each ASIN, you can see your inventory by the amount of time it has been in a fulfillment center:
This information can help you estimate the number of items that will have been in a fulfillment center for more than 180 days by the next inventory cleanup date.
The Recommended Removals report can also help you identify items subject to long-term storage fees. This report automatically calculates, on an ASIN-by-ASIN basis, the number of items you would need to remove to avoid long-term storage fees — assuming no further sales. The report identifies only those items that are subject to long-term storage fees within the 30 days before each cleanup date.
To find the Inventory Age page, click Inventory Planning under the Inventory tab in your seller account. For the Inventory Health and Recommended Removal reports, click Fulfillment under the Reports tab.
Your inventory: First in, first out
The long-term storage fee is in addition to the monthly inventory storage fee. Assessment is based on the date an item is received in the fulfillment center.
Only items that have been in a fulfillment center for more than 180 days will be assessed a long-term storage fee. Items that have been in a fulfillment center more than 365 days will be assessed only the 365-day fee — not the 180-day fee plus the 365-day fee.
FBA accounts for inventory on a first-in-first-out (FIFO) 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 physical item was actually shipped or removed.
How to avoid long-term storage fees
Active management of older inventory can help you avoid long-term storage fees. To remove older inventory before the next inventory cleanup date, you can:
Submit a removal order:If you submit a removal order for inventory before the cleanup date, that inventory won’t incur a long-term storage fee, even if it isn’t physically removed before that date. The deadline for submitting a removal order is 11:59 p.m. PT on the 14th of the month.
Inventory in sellable condition will be available for sale until the removal is complete. You won’t be charged a removal order fee until the inventory has been returned to you or disposed of.
Set up automated removals: Inventory designated for removal based on your automated long-term storage removal settings as of 15th of each month will not be subject to long-term storage fees.To set up automated removals, go to the Settings menu in Seller Central and click Fulfillment by Amazon.
You can enable removal of all inventory subject to long-term storage fees or select a price range to determine which items are removed. You can also keep inventory priced above a certain amount in the fulfillment center and pay the long-term storage fees for those items only, and have the rest returned to you or disposed of. Standard removal fees apply. For more information, see Remove inventory automatically.
Any items that you don’t remove and that are in sellable condition will continue to be available for sale and will be eligible for Amazon Prime and free shipping.
When can you replenish your inventory?
If you choose to 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, unless your FBA inventory of that product falls below our projection of its sales for the next eight weeks.
Three months after the inventory cleanup date: Restrictions based on removals are lifted at this point. For example, if you remove inventory before the September 15 inventory cleanup — between August 16 and 11:59 p.m. PT on September 14 — you’ll be able to send more units of that ASIN to fulfillment centers starting on December 15 (unless your ability to send units of that ASIN has been restricted for another reason).
Inventory level falls below sales projection: We base our projection of your sales of an ASIN for the next eight weeks on your average sales rate for that ASIN during the preceding 90 days. At any point that your inventory level for that ASIN falls below eight weeks of cover, the removal-based restriction is lifted and you can send more units to fulfillment centers.
Your inventory utilization for that ASIN may not exceed the preceding 90 days of sales — approximately 13 weeks of cover. Inventory utilization is your in-stock inventory plus any inventory on its way to a fulfillment center, from creation of a shipment order to receiving at the fulfillment center.
How much new inventory can you send?
For example: The ASIN you removed sold 180 units in the preceding 90 days. Based on that, our projection of your sales for the next eight weeks is 112 units (180/90 x 8 (weeks) x 7 (days)).
If your inventory utilization fell below 112, you could send more units of that ASIN to the fulfillment center.
Since your total inventory utilization may not exceed 90 days of sales — in this case, 180 units — if your inventory utilization fell to 111 units, you could send in up to 69 units to the fulfillment center (180 - 111 = 69).
The table below provides more examples of how much new inventory you can send to fulfillment centers after you’ve removed items subject to long-term storage fees.
Note: If there is a prior restriction on sending your ASIN to fulfillment centers because of a removal during an earlier long-term storage fee cycle, the longest restriction will apply.