Ways to Avoid Amazon FBA Storage Fees

 

This article will teach you how to avoid long-term FBA storage fees if you use FBA for selling on Amazon. They used to occur on February 15th and August 15th every year, however, they are now charged on a monthly basis. Amazon charges an FBA storage fee for every item which has been in stock for 6 months. This happens every month, on the 15th day.



Let’s start with the general information about Amazon FBA storage fees and end with strategies of getting rid of them. Amazon provides sellers with extensive information about FBA long-term storage fees, so you can get familiar with the details. Here are the main takeaways from the official article:

  1. Everything in stock for more than 6 months is charged a long-term storage fee on the 15th of every month.
  2. Things in stock for 6-12 months are charged an Amazon long term storage fee in the amount of $3.45 per one cubic foot.
  3. Items in stock for 365 days and more are charged an Amazon long term storage fee in the amount of$6.90 per one cubic foot.

 

How to Learn Which Items You Will Pay For

In this part, we will tell you how to find out which items will get Amazon storage fees:

  1. Login to the Amazon Seller account.
  2. Go to ‘Reports’ > ‘Fulfillment’.
  3. Find the ‘Inventory’ heading on the screen’s left side and click on the ‘Show more’ line.
  4. Visit ‘Inventory Health’.
  5. Go to ‘Download’ and select ‘Request Download’. Get your report once it is available for downloading.
  6. Open the text file you’ve got.
  7. Select all the text - either right-click and select everything or hold the Ctrl+A combination.
  8. Copy everything selected.
  9. Paste this into an Excel file or Google spreadsheets.
  10. Select the row on the very top, select ‘Filter’.
  11. Sort your columns as you want.

 

You can also use an alternative way to get the report:

  1. Go to ‘Inventory’.
  2. Select ‘Manage Inventory’.
  3. Go to the ‘Inventory Dashboard’.
  4. Select ‘Inventory Age’.
  5. Download your report.

 

With these reports, you’ll know all your FBA storage fees exactly. Each item may have an individual fee, this is shown in the reports as well.

 

And now it is time for getting familiar with several strategies of avoiding these fees, which we promised to cover in this article.

 

Pricing Strategies

This is a preferred way to avoid FBA storage fees, which works for most of sellers. Use the reports to find out which products are in stock for more than 90 days. Lower the price for them and wait until sales grow. You’ll boost your chances to sell these items quicker before your 180 days of your free storing end. As you remember, Amazon long term storage fee is collected after an item has been in an Amazon’s warehouse for more than 180 days or 6 months.

 

 

Be aggressive on your pricing and feel free to lower it as much as you can, if there are 2-3 weeks left. This will keep you in profit in any case.

 

Promos on Amazon and Sponsored Ads

Another way to boost sales, sell all your items in stock before Amazon FBA storage fees are charged is promoting your products on Amazon and growing people’s brand awareness.

 

Let more people see your items, which increases your chances to sell products, get more sales and don’t pay Amazon long term storage fees!

Here are some calculations… You will pay either an FBA storage fee or a removal fee, or… pay for sponsored ads and let your products fly off the shelves. The price of these things can be almost the same.
Start your ads campaign in a month or at least 3 weeks before your free storage period ends.

 

Free Removal Promos

Amazon has a special offer of removing FBA items for free from time to time. You can take advantage of this offer and remove your FBA items without paying a cent.

 

 

We can’t say exactly when this promo will start the next time, as this is what Amazon has to decide. Nevertheless, monitor their special offers for sellers.

 

Manage Your In-Stock Levels

This strategy is one of the best to avoid Amazon FBA long term storage fees. Manage your inventory from the very beginning, starting from the moment when they get to one of FBA warehouses. You need to know exactly which items are running out of 6 months of free storing, which will help you control your stock and Amazon FBA storage fees.

 

Time for Sending Inventory

We mean defying the best time for purchasing many items for reselling them on Amazon. You shouldn’t send thousands of items to Amazon’s warehouses before you are sure that they are sold well. You can tell your supplier to ship items to Amazon by small parties (for example, 50 pieces per month, or something like this).

 

 

Still, it will be harder to define the right time for seasonal products, so use your own experience to calculate the best option.

 

Finding Items for Removal

If you have lots of inventory, check out whether something can be removed. These can be products you haven’t sold, so they can be either removed or stored for additional Amazon long term storage fee.

 

The first thing to do is to calculate the costs of sending these products back to your place. Next, calculate the fees for storing them. Look at the results - which option is more profitable for you? You can also assume your chances to sell these products with a discount in the next month or two to see if this decision is correct.

 

Conclusions

Anyway, avoiding Amazon FBA storage fees helps sellers save money and spend them on something more essential. Choose a strategy you like the most from those listed above, or combine several ones.

We hope this article will be helpful when it comes to dealing with Amazon storage fees.