Amazon charges monthly inventory storage fees for the space your inventory occupies in fulfillment centers. Monthly storage fees are calculated on your daily average volume in cubic feet, based on the size of a unit that is properly packaged and ready to ship in accordance with FBA policies and requirements. Monthly storage fees consist of the following fee components:
Fees for inventory that is classified as dangerous goods are assessed using different rates. Review the Dangerous Goods Identification Guide to determine if your inventory is considered dangerous goods.
Program specifics: The details, calculations, or rates for this fee vary if enrolled in the following programs:
Time of charge | Monthly, typically between the 7th and 15th day of the month, in the month following when the fees were incurred. |
Fee components | Base monthly storage fee and storage utilization surcharge. |
Fee structure | Per usage of storage, based on the daily average volume for the space your inventory occupies in fulfillment centers. Rate based on product type, size-tier, time of year, and storage utilization ratio. |
Base monthly storage fee is charged to all inventory in fulfillment centers. Charges vary based on product size tier and time of year.
Some sellers are also subject to a storage utilization surcharge in addition to the base monthly storage fee. This surcharge aligns our fees with underlying costs to serve impacted sellers. The surcharge is based on the storage utilization ratio, which is the ratio of your average daily inventory volume stored divided by the average daily shipped volume during the past 13 weeks. The ratio is calculated for each product size tier, which means you may have a storage utilization ratio for standard-size and a different storage utilization ratio for oversize. You can view your latest storage utilization ratio on FBA Dashboard.
The surcharge is only applicable if you meet all of the following criteria:
If you meet the above criteria, a storage utilization surcharge will be applied to all inventory in fulfillment centers aged above 30 days, and added to your base monthly storage fee. If you do not meet any of the criteria, you will only be charged a base monthly storage fee.
For more information on the storage utilization surcharge, including how to reduce the surcharge, go to the Frequently asked questions section.
Product size tier | Product size tiers are measurement categories based on the unit weight, product dimensions, and dimensional weight of a packaged item. Learn how to determine your product-size tier, or use the Monthly Storage Fees report to see the size tier information for products you have previously stored in FBA. |
Current month | Storage fees vary by time of year based on shopping seasons as outlined in the Rates section below. |
Product volume | Product dimensions and volume (which equals to longest side x median side x shortest side) are measured when a product is fully packaged and ready to ship in accordance with FBA policies and requirements. Monthly inventory storage fees are calculated by cubic meter. Use the Monthly Storage Fees report to see the product volume for products you have previously stored with FBA. |
Average daily units | Fees are based on the average number of units stored in FBA per month, minus the average number of units pending removal. Use the Monthly Storage Fees report to see the average daily units for your products stored in FBA for previous months. |
Storage utilization ratio | The ratio of your average daily inventory volume stored divided by the average daily shipped volume during the past 13 weeks. Storage utilization ratio on the last day of a given month is used to determine the storage utilization surcharge rate for inventory stored during that month. Use the FBA dashboard to see your latest storage utilization ratio and Monthly Storage Fees report to see the storage utilization ratio used in monthly storage fees charged in previous months. |
Dangerous goods classification status | Products that can be sold only through the FBA Dangerous Goods program require special handling and storage. Use the look up an ASIN tool to check the classification status of your ASIN and whether it requires enrollment in the FBA Dangerous Goods program. |
Suggested articles: See the following articles for more details on how monthly inventory storage is calculated.
To determine which rate applies to your product:
Non-dangerous goods products, off-peak period (January - September) | |||||||
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Storage utilization ratio | Standard-size1 | Oversize | |||||
Base monthly storage fee (per cubic foot) |
Storage utilization surcharge (per cubic foot)3 |
Total monthly storage fee (per cubic foot) |
Base monthly storage fee (per cubic foot) |
Storage utilization surcharge (per cubic foot) 3 |
Total monthly storage fee (per cubic foot) |
||
Below 22 weeks | $0.78 | N/A | $0.78 | $0.56 | N/A | $0.56 | |
22 – 28 weeks | $0.78 | $0.44 | $1.22 | $0.56 | $0.23 | $0.79 | |
28 – 36 weeks | $0.78 | $0.76 | $1.54 | $0.56 | $0.46 | $1.02 | |
36 – 44 weeks | $0.78 | $1.16 | $1.94 | $0.56 | $0.63 | $1.19 | |
44 – 52 weeks | $0.78 | $1.58 | $2.36 | $0.56 | $0.76 | $1.32 | |
52+ weeks | $0.78 | $1.88 | $2.66 | $0.56 | $1.26 | $1.82 | |
New sellers2, Individual sellers, and sellers with less than or equal to 25 cubic feet daily volume | $0.78 | N/A | $0.87 | $0.56 | N/A | $0.56 |
Non-dangerous goods products, peak period (October - December) | |||||||
---|---|---|---|---|---|---|---|
Storage utilization ratio | Standard-size1 | Oversize | |||||
Base monthly storage fee (per cubic foot) |
Storage utilization surcharge (per cubic foot) 3 |
Total monthly storage fee (per cubic foot) |
Base monthly storage fee (per cubic foot) |
Storage utilization surcharge (per cubic foot) 3 |
Total monthly storage fee (per cubic foot) |
||
Below 22 weeks | $2.40 | N/A | $2.40 | $1.40 | N/A | $1.40 | |
22 – 28 weeks | $2.40 | $0.44 | $2.84 | $1.40 | $0.23 | $1.63 | |
28 – 36 weeks | $2.40 | $0.76 | $3.16 | $1.40 | $0.46 | $1.86 | |
36 – 44 weeks | $2.40 | $1.16 | $3.56 | $1.40 | $0.63 | $2.03 | |
44 – 52 weeks | $2.40 | $1.58 | $3.98 | $1.40 | $0.76 | $2.16 | |
52+ weeks | $2.40 | $1.88 | $4.28 | $1.40 | $1.26 | $2.66 | |
New sellers2, Individual sellers, and sellers with less than or equal to 25 cubic feet daily volume | $2.40 | N/A | $2.40 | $1.40 | N/A | $1.40 |
Dangerous goods products | ||
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Month | Standard-size (per cubic foot) | Oversize (per cubic foot) |
January - September | $0.99 | $0.78 |
October - December | $3.63 | $2.43 |
Formula | Fee per product = average daily units x volume per unit x applicable rate |
Example 1: Sellers that do not meet storage utilization surcharge criteria | |
Sample product |
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Calculation |
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Example 2: Sellers that meet storage utilization surcharge criteria | |
Sample product |
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Calculation |
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Estimating fees | Revenue Calculator |
Reporting fees | Monthly Storage Fees report |
Reporting storage utilization ratio | FBA Dashboard |
How is the storage utilization ratio calculated?
The ratio is calculated by dividing average daily inventory volume stored by average daily shipped volume over the past 13 weeks, and then dividing it by number of days in a week. The formula for the ratio is: (Daily inventory volume for the past 13 weeks / Daily shipped volume for the past 13 weeks) / (7 days in a week). We include all inventory stored in fulfillment centers to calculate the ratio, excluding pending removal volume. For each seller, we calculate the ratio on product size tier level, which means that a seller may have one storage utilization ratio for standard-size and a different storage utilization ratio for oversize.
How do I estimate my storage utilization ratio?
Use the FBA Dashboard to see your latest storage utilization ratio. The dashboard shows your average daily inventory volume, average daily shipped volume, and storage utilization ratio for each product size tier. The dashboard will also indicate if you are nearing or exceeding the threshold for the surcharge.
How is the storage utilization ratio used in storage fee calculation?
We use the storage utilization ratio from the last day of the month to determine the surcharge for the inventory stored during that month. For example, to determine the surcharge for April 2024, we will use the storage utilization ratio from April 30. If the surcharge is applicable to a seller, we will apply to surcharge to all inventory aged above 30 days stored in fulfillment centers during that month. We will then add the surcharge to base monthly storage fee. See below calculation for example:
Sample seller |
Size tier: Standard-size Current month: April Average daily inventory cube: 40,000 cubic feet Average daily shipped cube: 200 cubic feet |
Seller surcharge utilization ratio | (40,000 cubic ft / 200 cubic ft) / 7 days in a week = 28.6 weeks |
Storage fee rates |
Base monthly storage fee to be applied to all inventory: $0.78 per cubic foot (standard-size rate in April) Storage utilization surcharge to be applied to all inventory aged above 30 days: $0.76 per cubic foot (standard-size surcharge for surcharge utilization ratio between 28-36 weeks in April) |
How can I prevent getting the storage utilization surcharge?
You can reduce your storage utilization ratio and minimize the surcharge by reducing their stored inventory volume. You can improve your sell-through rate, request a liquidation order, or request a return or disposal order through a removal order.
You can also review the Monthly Storage Fee report, which shows how your monthly storage fee is broken out by base monthly storage fee and storage utilization surcharge. You can use this report to see which SKUs historically drive your storage costs, and reduce inventory on those SKUs.
Will I still receive my FBA New Selection benefit with the introduction of the storage utilization surcharge?
FBA New Selection program offers eligible sellers free monthly storage, free liquidations, and free return processing on eligible products for a limited time. These benefits can help you launch new products and allow you to recover value from excess inventory.
If you are enrolled in FBA New Selection program and your units are eligible for free monthly storage, those units will not be factored into your base monthly storage fee and storage utilization surcharge.
Will the storage utilization surcharge apply to products auto-replenished by Amazon Warehousing and Distribution (AWD)?
Starting June 1, 2024, products that are auto-replenished by Amazon Warehousing and Distribution (AWD) are eligible for a storage utilization surcharge waiver. For a product to become eligible for the waiver 70% or more of the FBA inventory units must be auto-replenished in the past 13 weeks. This Auto-Replenishment Ratio (ARR) will be calculated daily for each product. Run a FBA Surcharge Waiver Status report to confirm the status (Waived/Not Waived) of each product.
How will using AWD to auto-replenish products impact my storage utilization ratio?
Starting June 1, 2024, on the last day of the month, we’ll remove any products that are auto-replenished with AWD and meet the above waiver requirements before we calculate your storage utilization ratio. For example, all eligible products as of June 30, 2024, will be removed from your storage utilization ratio calculation for June 2024 surcharge.