What Is Amazon FBA Long-Term Storage Fee

Current fee structure and tiers

Amazon's aged inventory surcharge (formerly called long-term storage fees) applies to any FBA inventory that has been in Amazon's fulfillment centers for 181 days or more. The fees escalate in tiers — the longer your inventory sits, the more you pay per cubic foot.

These surcharges are in addition to standard monthly storage fees ($0.87/cubic foot January-September, $2.40/cubic foot October-December for standard-size items). During Q4, your total storage cost for aged inventory can be staggering.

Important: Amazon adjusts these rates periodically. Always check the current fee schedule in Seller Central for the most up-to-date rates.

How fees are calculated

Understanding the calculation helps you estimate your exposure accurately:

Inventory age is calculated from the date Amazon receives the inventory at their fulfillment center — not the date you created the shipment or the date it was shipped. If your shipment takes 2 weeks to be received and processed, that's 2 weeks of aging before your inventory even becomes sellable.

Volume is measured in cubic feet based on the product's packaged dimensions. A product measuring 12" × 8" × 4" occupies 0.22 cubic feet. The surcharge is applied per cubic foot, so larger products pay proportionally more.

Critical detail: The inventory age clock cannot be reset. If you remove inventory from FBA and resend it, Amazon tracks the age by FNSKU and continues counting from the original receive date. This means removal-and-resend is NOT a strategy for avoiding surcharges.

How to check your exposure

Amazon provides several reports to track inventory age:

Inventory Age report: The most important report for aged inventory management. Navigate to Reports → Fulfillment → Inventory Age. This shows every ASIN with the number of units in each age bracket (0-90, 91-180, 181-270, 271-365, 365+) and estimated upcoming surcharges.

Inventory Health report: A broader view that includes age data alongside other inventory metrics. Useful for seeing the full picture of your FBA health.

Recommended Removals report: Amazon's own recommendations for inventory that should be removed based on cost analysis — products where storage costs are likely to exceed any potential revenue.

Check these reports weekly at minimum. Set a calendar reminder for every Monday morning — 5 minutes reviewing your Inventory Age report can save you hundreds in avoidable surcharges.

Real cost examples

Here's what aged inventory actually costs across different product types:

Notice how bulky products are disproportionately affected. A single oversized product at 365+ days can cost more in monthly surcharges than it's worth in revenue.

Sell-through strategies

Before removing inventory, try to sell it — even at reduced margins, revenue is better than disposal:

• Coupons (20-40% off): Fast to set up, visible on search results. Great for products with some demand that just need a price nudge.
• Lightning Deals: High-visibility promotions that drive volume. Submit 2-3 weeks before your inventory hits the next age tier.
• Prime Exclusive Discounts: Visible as a deal badge in search results. 10-20% discounts often increase velocity 2-3x.
• Social media promotion: Drive external traffic with Amazon Attribution links. Even a small social push can move stale inventory.
• Bundle with fast sellers: Create a new listing that bundles the slow mover with a popular product.
• Price reduction: Sometimes a simple 15-20% price cut is enough to restart sales velocity without the promotion overhead.

The math is simple: if your product sells for $20 with a $5 margin, and the aged surcharge is costing you $3/month per unit, you break even in less than 2 months. But if it's been sitting for 300+ days with no sales, it's time for more aggressive action.

Removal and liquidation options

Removal orders

Create a removal order to have Amazon ship inventory back to you. Costs:

• Standard-size: $0.52-0.97 per unit (depending on weight)
• Oversize: $1.07-8.76 per unit (depending on size tier)

Processing time: 10-14 business days. During peak season (Q4), processing can take 30+ days.

Disposal orders

Amazon destroys the inventory. Costs are similar to removal but slightly lower. Only choose this if the inventory has zero resale value and isn't worth shipping back.

FBA Liquidations program

Amazon sells your inventory through its liquidation partners at deeply discounted prices. You typically receive 5-10% of the retail price. This is often the best option for:

• Bulky items where return shipping costs exceed the product value
• Products with some value but no Amazon demand
• Items approaching the 365-day threshold with no sales history

Preventing aged inventory

The best strategy is never getting into this situation in the first place:

• Data-driven restock quantities: Use the reorder formula to send 30-60 days of supply, not 90-120 days. Replenish more frequently with smaller quantities.
• Sales velocity monitoring: Track daily sales velocity by ASIN. When velocity drops below forecast, investigate immediately — don't wait for inventory to age.
• 90-day inventory review: At the 90-day mark, evaluate every product. Is it still selling at forecast rate? If not, start promotional activity now, while you still have 90 days before surcharges begin.
• New product launch limits: When launching a new product, send a conservative first batch (30-45 days of estimated demand). Scale up only after you have actual sales data.
• Seasonal product management: Remove or sell through seasonal inventory before it goes out of season. Christmas products should be cleared by January, not left to age until July.

Seasonal inventory planning

Seasonal products are the biggest long-term storage fee offenders. Here's how to manage them:

The key principle: plan your exit strategy before you send the inventory. Know your "sell by" date and have automatic triggers (price drops, promotions) that activate as it approaches.

The IPI connection

Aged inventory and IPI score are deeply intertwined. Excess inventory (products with 90+ days of supply) is the highest-weighted factor in your IPI score. Products that eventually become aged inventory typically spent weeks or months in the "excess" category first — damaging your IPI the entire time.

The vicious cycle: excess inventory → low IPI → storage limits → can't send fast sellers → lower sell-through → lower IPI → even lower storage limits. Breaking this cycle requires proactive inventory management, not reactive fee avoidance.

Clear your aged inventory, manage your restock quantities, and your IPI will naturally improve — giving you the storage capacity you need for the products that actually sell.