July 1, 2020
If you’re selling on Amazon’s online marketplace and relying on Fulfilled by Amazon to store, pick and ship orders for you, you’re going to be subject to some storage fees. These fees can get pretty hefty once they add up, so it’s important to understand the breakdown before you get sent the bill.
Amazon sellers are subject to both monthly storage fees and long-term storage fees if they apply. Monthly storage fees are charged per cubic foot, and vary by season, the size of the product (standard or oversize), and whether or not the products are dangerous goods.
FBA long-term storage fees apply to ASINs (Amazon Standard Identification Number) that have been stored in an Amazon fulfillment center for over 365 days. Another monthly fee charged in addition to the monthly storage fee, this one charges $6.90 per cubic foot or $0.15 per unit, whichever is greater.
How do you avoid long-term storage fees?
Other than making sure you’re selling inventory fast enough, you can submit a removal order, for which you’ll be charged a fee after the inventory has been returned to you or discarded. But be aware that once you’ve removed inventory that would have been subject to a long-term storage fee, you can’t ship any more of those SKUs to the fulfillment center for three months, unless inventory falls below sales projections.
Want to avoid storage fees altogether? Reach out to a Stord representative about finding alternative storage or fulfillment solutions.