First Posted March 25, 2026 | 🕒 Last Updated on March 28, 2026 by Ryan Conlon
Managing storage costs effectively is one of the biggest challenges Amazon FBA sellers face today. FBA Long Term Storage Fees can quickly eat into your profits if you don’t stay on top of your inventory management strategy.
Amazon charges these fees to encourage sellers to keep their inventory moving and prevent warehouses from becoming cluttered with slow-selling products. Understanding how these fees work and implementing smart strategies can save you hundreds or thousands of dollars each month.
TL;DR
- Amazon charges $6.90 per cubic foot for inventory stored over 365 days, plus $0.45 per unit surcharge.
- Storage fees are assessed on the 15th of each month for items that have been in warehouses too long.
- Just-in-time inventory practices can reduce storage costs by keeping only 30-90 days of stock on hand.
- Creating removal orders before fee deadlines can save thousands in long-term storage charges.
How FBA Long Term Storage Fees Work
Amazon’s storage fee system operates on a tiered structure based on how long your inventory sits in their fulfillment centers. The longer your products remain unsold, the more expensive storage becomes.
Amazon calculates these fees using the daily average volume of your inventory measured in cubic feet. They assess charges monthly, making it important to track your inventory age consistently.
Current Storage Fee Structure
Amazon’s storage fees increase dramatically as inventory ages. Here’s the current fee breakdown:
- 0-90 days – $0.87 per cubic foot (standard rate)
- 91-180 days – $1.20 per cubic foot plus $0.15 per unit surcharge
- 181-365 days – $2.40 per cubic foot plus $0.30 per unit surcharge
- 365+ days – $6.90 per cubic foot plus $0.45 per unit surcharge
Assessment Dates and Timing
Amazon reviews inventory age and assesses long-term storage fees on the 15th of each month. This means you have until the 14th to remove aged inventory before facing additional charges.
The system tracks inventory from the date it arrives at Amazon’s fulfillment centers, not from when you created the shipment. Planning around these dates helps you avoid unexpected fee spikes.
Smart Inventory Management Strategies
Preventing long-term storage fees requires a proactive approach to inventory management. The key is maintaining optimal stock levels while keeping your products moving consistently.
Successful FBA sellers focus on inventory velocity rather than just having products available. This approach helps you balance customer demand with storage cost efficiency.
Just-in-Time Inventory Practices
Implementing just-in-time inventory management reduces your storage footprint and associated costs. This strategy involves ordering and stocking products based on actual demand patterns rather than predictions.
Monitor your sales velocity for each product and aim to maintain 30-90 days of inventory on hand. This timeframe gives you enough buffer for demand fluctuations while minimizing long-term storage risk.
Setting Up Inventory Monitoring Systems
Amazon’s Seller Central provides several tools to track inventory age and performance. The Inventory Age report shows how long each ASIN has been stored and helps identify products approaching fee thresholds.
Set up automated alerts through third-party inventory management tools that notify you when products reach 300+ days in storage. This gives you time to take action before incurring the highest fee tier.
Track Your Inventory Velocity
Calculate inventory turnover by dividing your monthly sales by current inventory levels. Aim for 4-12 turns per year to maintain healthy cash flow and avoid storage fees.
Reducing Existing Aged Inventory
When you already have aged inventory in Amazon’s warehouses, quick action can prevent escalating storage costs. Several strategies help clear out slow-moving stock effectively.
The goal is to either sell the products quickly or remove them before they reach the next fee tier. Each approach has different costs and benefits depending on your specific situation.
Creating Strategic Removal Orders
Removal orders let you retrieve inventory from Amazon’s warehouses before storage fees increase. You can choose to have items shipped back to you or disposed of entirely.
Calculate the cost of removal versus potential storage fees to determine the most profitable option. Sometimes paying $0.50 per unit for disposal saves more money than months of accumulated storage charges.
Running Targeted Promotions
Promotional campaigns can quickly move aged inventory while recovering some value. Consider these promotion types:
- Lightning Deals – High visibility for 4-6 hours with significant discounts
- Coupons – Percentage or dollar-off incentives that appear in search results
- Price reductions – Temporary markdowns to stimulate demand
- Buy-one-get-one offers – Bundle slow movers with popular products
Amazon PPC for Aged Inventory
Increase visibility for aged products through targeted advertising campaigns. Focus on high-converting keywords and set competitive bids to drive traffic to slow-moving items.
Create separate campaigns specifically for aged inventory with higher advertising costs of sale targets. The goal is clearing inventory, not maximizing profit margins on individual sales.
Building Long-Term Prevention Systems
Creating sustainable inventory practices prevents storage fee problems before they start. Focus on building systems that maintain optimal inventory levels automatically.
Successful FBA businesses use data-driven approaches to inventory management rather than guesswork. This systematic approach reduces both storage costs and stockout risks.
Demand Forecasting Tools
Use historical sales data to predict future demand patterns more accurately. Amazon provides sales analytics, but third-party tools often offer more sophisticated forecasting capabilities.
Factor in seasonality, market trends, and promotional periods when calculating reorder points. This helps prevent both overstocking and stockouts throughout the year.
Supplier Relationship Management
Work with suppliers who can accommodate smaller, more frequent orders rather than large bulk purchases. This flexibility helps maintain optimal inventory levels without tying up excessive capital.
Negotiate payment terms that align with your inventory turnover rates. When possible, arrange for dropshipping or consignment arrangements that reduce your storage burden entirely.
Frequently Asked Questions
How much does Amazon charge for long-term storage?
Amazon charges $6.90 per cubic foot for inventory stored over 365 days, plus an additional $0.45 per unit surcharge. These fees are assessed monthly on the 15th.
When do Amazon long-term storage fees start?
Long-term storage fees begin after inventory has been stored for 365 days. However, aged inventory surcharges start at 91 days with increasing rates at 181 days.
Can I avoid long-term storage fees by creating removal orders?
Yes, creating removal orders before the monthly assessment date (15th) helps you avoid long-term storage fees. You can have items returned to you or disposed of by Amazon.
What happens if I don’t pay Amazon storage fees?
Unpaid storage fees are automatically deducted from your seller account balance. If your account has insufficient funds, Amazon may restrict your selling privileges until fees are paid.
How can I check my inventory age on Amazon?
Access the Inventory Age report in Seller Central under Reports > Fulfillment. This report shows how long each ASIN has been stored and potential upcoming fees.
Final Thoughts
FBA Long Term Storage Fees can significantly impact your profitability if left unmanaged, but they’re completely avoidable with the right strategies. Focus on maintaining healthy inventory turnover and monitoring your stock age consistently.
Start implementing just-in-time inventory practices and set up monitoring systems today. The money you save on storage fees can be reinvested into growing your FBA business more effectively, especially as new Amazon FBA changes in 2025 continue to evolve. Understanding these common new seller mistakes around inventory management can help you avoid costly storage fees from the beginning of your Amazon journey.
Ryan Conlon, a seasoned entrepreneur and e-commerce expert dedicated to helping resellers thrive in the dynamic world of Amazon FBA. With years of hands-on experience and a passion for sharing knowledge, Ryan is your trusted guide on the journey to reselling success. His commitment to providing valuable insights, strategic tips, and actionable advice is the driving force behind FBAresellers.com