Understanding Amazon FBA Storage Fees

Navigating Amazon's FBA (Fulfillment by Amazon) storage fees is crucial for any seller looking to optimize their inventory management and minimize costs.

Understanding these fees—from monthly storage charges to utilization surcharges and aged inventory fees—is essential for maintaining profitability and efficiency in your Amazon business. Let's dive in to ensure you're ready to make informed decisions about your inventory strategy on Amazon.

Monthly Storage Fee

Amazon charges a monthly inventory storage fee based on the amount of space your inventory takes up in its fulfillment centers. Monthly storage fees are calculated on the daily average volume in cubic feet, based on the size of a unit that is packaged per Amazon’s FBA policies and requirements.

Monthly storage fees consist of:

• Base monthly storage fee
• Storage utilization surcharge

Base Monthly Storage Fee

Base monthly storage fee is charged to all inventory in fulfillment centers. Charges vary based on product size tier and time of year:
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Storage Utilization Surcharge

Some sellers will also be charged a storage utilization fee. This fee 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.

The fee is only applicable to sellers that meet all of the following criteria:

• Sellers with a Professional account
• Seller's first shipment to an Amazon fulfillment center was over a year ago
• Seller's average daily inventory volume for the product size tier is at or above 25 cubic feet
• Seller's storage utilization ratio for the product size tier is above 26 weeks

If you do meet the above criteria, a storage utilization surcharge will be applied to all inventory in fulfillment centers aged above 30 days and will be 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.

Values used to calculate the monthly storage fee:​

• Product size tier
• Current month
• Product Volume (longest side * median side * shortest side)
• Average monthly units stored in FBA minus average pending removals
• Storage utilization ratio
• If the product is in the "Dangerous Goods" category

Determine your storage rates using the charts below:

Aged Inventory Fee (Long Term Storage)

Amazon’s aged inventory fee (previously known as the long-term storage fee) is a fee charged on any inventory that is in Amazon for over six months (181 days and above). Amazon’s aged inventory fees are determined using an inventory snapshot on the 15th day of each month (and is separate from the monthly inventory storage fee), and they are charged between the 18th and 22nd day of each month.

Amazon calculates an item’s inventory age on a first-in, first-out basis across their entire fulfillment network. Items that are sold or removed are deducted from the inventory that has been in the fulfillment network the longest, regardless of which unit was actually shipped or removed. For example, if Amazon picks and ships a unit that arrived in the fulfillment center recently, they will still deduct that unit from the oldest inventory in stock.

Determine your Aged Inventory fee using the chart below:

Here are some fee examples: