When selling on Amazon as a FBA seller, it’s important to keep in mind the fluctuation of the storage costs through out the year.
AMAZON’S LONG TERM STORAGE FEES VS MONTHLY INVENTORY STORAGE FEES
Both fees are assessed once per month and are based on the storage volume (measured in cubic feet) for the space your inventory occupies in Amazon fulfillment centers. Both the long term and monthly fees are also separate from the per-item fees that are deducted from your sales revenue.
AMAZON MONTHLY FEE
When selling FBA, it is required to have items stocked at amazon warehouses ready for shipping. This incurs a monthly storage fee charged between the 7th and 15th day of the month following the month for which the fee applies. For example, if you had inventory in Amazon warehouses in July, your monthly storage fee will be charged between August 7-15
Through out the year the pricing for the storage fees will vary but are always charged by cubic foot
With Halloween, the season of giving and Christmas all lined up month after month during the last quarter of the year, it’s a festivity grenade.
AMAZON LONG TERM FEE
Amazon refers to the monthly long-term storage fee assessment as an “inventory cleanup.” What Amazon is trying to clean up here is inventory that has been in fulfillment centers for more than 6 months.
Keeping in mind that this fee only occurs after 6 months of keeping your items stocked at an Amazon warehouse, it is also added on to your usual monthly storage fee.
Because Amazon wants to sell and not store. The long term storage fee is solely for this purpose, to encourage sellers to essentially get rid of their stock through selling
” On the 15th of each month, Fulfillment by Amazon (FBA) conducts an inventory cleanup. On these dates, inventory that has been in US fulfillment centers for 181 to 365 days incurs a long-term storage fee (LTSF) of $3.45 per cubic foot. Items that have been in US fulfillment centers for more than 365 days on the inventory cleanup date incur a long-term storage fee of $6.90 per cubic foot.”
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