Amazon’s long-term storage fee no longer works the way most guides describe. In 2024, Amazon replaced it with the Aged Inventory Surcharge. This charge starts at 181 days, not 365, and it hits every month instead of twice a year. This guide covers how the current fee works and how to keep inventory from aging into it.
While it is crucial to maintain adequate inventory to satisfy consumer demand, the owner gets anxious when they cannot avoid paying long-term storage costs. These long-term fees, designed to keep warehouses from overflowing with stagnant products, can quickly turn a healthy profit margin into a red zone.
But fear not, fellow entrepreneurs! This guide will be your roadmap to navigating Amazon’s storage complexities.
It will provide you with the specifics of long-term storage fees and equip you with powerful strategies to keep them at bay.
From automating inventory removal to identifying and dealing with slow-moving products, we’ll provide the tools and knowledge you need to reclaim control and keep your Amazon business flourishing.
Before delving into strategies for reducing long-term storage fees, it is imperative to gain a comprehensive understanding of what exactly these fees entail and how they are calculated.
Amazon’s long-term storage fees (LTSF)
FBA stores your products so you can sell them fast. When inventory sits too long, Amazon adds the Aged Inventory Surcharge on top of your normal storage fee. It starts once a unit passes 181 days in a fulfillment center. Amazon charges it monthly, based on a snapshot taken on the 15th of each month.
The rate steps up the longer stock sits. Amazon bills the greater of a per-unit rate or a per-cubic-foot rate. It also uses first-in, first-out to age your inventory. Selling or removing a unit clears the oldest stock on record first. The fix is simple: clear slow movers before they cross 181 days.
Confirmed: inventory between 181 and 270 days incurs the lowest tier, 271 to 365 days a higher rate, and 366+ days the steepest, assessed on the 15th of each month using FIFO, and layered on top of monthly storage. Note the storagecafe.com external link is removed here (it’s an irrelevant third-party link). Amalert
Long-term storage fees calculation (LTSF)
Follow the below steps to calculate the LTSF
Step 1: Calculate your Inventory Volume
To determine the total volume of your inventory in cubic feet, a straightforward calculation can be employed.
For each unit, multiply the length, width, and height of the item.
To determine the total cubic footage of your entire inventory, add up the volume of each unit.
Step 2: Know your Inventory Age
To access information regarding the age of your stored items within Amazon fulfillment centers, navigate to your Seller Central account.
Within the “Inventory“ tab, locate and select the “Inventory Age” option. This will display a comprehensive report detailing the length of time each item has been stored.
Step 3: Pinpoint Surcharged Inventory
To reduce the impact of surcharges for aged inventory, sellers must implement effective strategies for products that have been in Amazon’s fulfillment centers for over 181 days.
These strategies may involve liquidation, price reductions, or promotional campaigns to boost sales of the affected inventory.
Proactively addressing slow-moving stock will help sellers minimize storage fees and sustain a healthy profit margin.
If you want to learn how to effectively liquidate your aging inventory and turn it into profitable sales, check out our Amazon Warehouse Deals Guide.
Step 4: Long-term fee calculation
Amazon calculates the surcharge from your inventory’s cubic footage times the rate for its age tier. It bills the greater of that per-cubic-foot amount or a per-unit rate. The surcharge applies to any inventory stored 181 days or more, and the rate rises at each age tier.
What changed in 2026
Amazon added higher tiers for the oldest inventory. Stock aged 12 to 15 months moved to a higher minimum rate. A new tier now applies at 15 months and beyond. These are the steepest surcharges in the structure, so dead stock is more expensive to hold than in prior years.
The lower tiers (181 to 365 days) carry their own per-cubic-foot rates that Amazon adjusts periodically. Pull the current rate for each age band from Seller Central under Inventory, then FBA Inventory, then the Aged Inventory tab.
Note for you: the exact per-band dollar rates vary between sources ($0.50 vs $1.25 vs $1.50 per cubic foot at the 181-270 band, for example), so I’ve kept the block structural rather than publishing figures that might be wrong. If you paste the current Aged Inventory Surcharge table from Seller Central, I’ll build a clean, accurate tier table to slot in here. The 12-15 month and 15+ month tiers are well-corroborated at $0.30/unit or $6.90/cu ft and $0.35/unit or $7.90/cu ft, but confirm those in Seller Central too before publishing.
For example, if your inventory occupies 1,000 cubic feet and the current long-term storage fee is $6.90 per cubic foot, you would face a monthly charge of $6,900. It’s important to note that long-term storage fees are in addition to the standard monthly storage fees imposed by Amazon. You can review a complete breakdown of these standard charges in our Amazon FBA fees guide to plan your pricing strategy effectively.
To protect your bottom line, it’s crucial to consistently monitor and manage your inventory levels to avoid accumulating excessive long-term storage fees.
Step 5: Track your stock closely
Additionally, implementing a robust inventory management system is essential. Reviewing your stock levels regularly helps you make proactive decisions, so you can avoid extra costs for holding old inventory and the financial burden of having too many items in stock.
Here are the 8 best ways to optimize your long term storage fees on Amazon
1. Plan your Inventory Smartly
The key to avoiding long-term storage fees is starting smart with your inventory levels. Don’t order a ton of products upfront! Track your stock regularly and use Amazon’s tools like the IPI (Inventory Performance Index) to see what’s selling well and what’s not.
This way, you can adjust your ordering to avoid having too much stuff sitting around in Amazon’s warehouses for more than a year (that’s when the fees kick in).
By keeping a close eye on your inventory and ordering strategically, you can keep those fees at bay and maximize your profits on Amazon.
2. Use the Recommended Removal Report
Another weapon in your arsenal against long-term storage fees is Amazon’s Recommended Removal Report. This report identifies products nearing the fee threshold based on factors like inventory levels and sales history.
You can view this report by following a few simple steps:
- Go to Seller Central Reports
- Click on Fulfillment
- Click on Inventory
- Recommended Removals is displayed
By regularly reviewing this report, you can take proactive steps to remove slow-moving items before incurring storage charges. These options include removing the inventory for storage elsewhere or disposing of it altogether if it’s no longer sellable.
Utilizing this report allows you to make informed decisions and potentially save money on storage fees.
3. Dig deep: Analyze Unsold Products and its reasons
Know the reasons behind slow-moving inventory!
Analyzing unsold products allows you to address the root cause and boost sales velocity. This proactive approach can significantly reduce your risk of incurring long-term storage fees.
Investigating the root causes behind sluggish product sales is crucial to mitigating long-term storage fees.
Here are some key areas for examination:
- Pricing Strategy
Are your products competitively priced compared to similar offerings? Overinflated prices can deter potential buyers. Consider price adjustments to align with the market.
- Customer Reviews
Negative reviews can significantly hinder your sales momentum. Regularly monitor customer reviews and address any concerns raised to rebuild trust and encourage purchases.
- Product Listing Optimization
Are your product listings optimized for discoverability? Utilize relevant keywords, high-quality images, and detailed descriptions to ensure your products stand out in search results. Working with an Amazon listing optimization agency can help you implement these best practices strategically and stay ahead of the competition.
- Seasonal Fluctuations
Certain products may experience seasonal sales variations. Adjust your inventory levels accordingly to avoid overstocking during periods of lower demand.
- Competitive Landscape
Is there excessive competition for your specific products? Consider diversifying your offerings or targeting niches with less competition to increase your chances of success.
By proactively addressing these potential roadblocks, you can significantly enhance your sales velocity and minimize the risk of incurring long-term storage fees. Furthermore, consistent monitoring of your sales performance allows for early identification of slow-moving inventory, enabling you to take timely action and avoid storage fee accrual.
Suggested Read: What is Days Inventory Outstanding(DIO)? All you need to know
4. Lower your prices
Consider implementing strategic price adjustments to combat the threat of long-term storage fees.
Offering enticing discounts or lowering your price points can act as a powerful sales catalyst. This approach can incentivize customers to choose your products, ultimately propelling your sales velocity and mitigating the risk of storage fee accrual.
Remember, competitive pricing is key in today’s dynamic marketplace. By offering attractive pricing structures, you can significantly enhance your product’s appeal and ensure it doesn’t languish on warehouse shelves.
5. Consider Amazon Outlet Sales for aging Inventory
Amazon Outlet presents a valuable avenue for offloading aging inventory and mitigating long-term storage fees.
Here’s how to leverage this feature effectively:
- Pinpoint Seasoned Stock
Utilize Amazon’s Inventory Age report to identify products nearing the long-term storage threshold.
- Discounted Listings
Create listings for these products at reduced prices and leverage the dedicated Amazon Outlet section for increased exposure.
- Targeted Marketing (if profitable)
Consider employing Amazon’s marketing tools like sponsored product and display ads, or deals, to promote your discounted listings and reach a wider audience. However, ensure that the profit margin remains favorable after factoring in advertising costs.
- Performance Monitoring
Regularly monitor the performance of your outlet listings to gauge their effectiveness in generating sales and clearing out stagnant inventory.
By strategically utilizing Amazon Outlet, you can effectively clear out aging inventory, minimize long-term storage fees, and optimize your overall inventory management on the platform.
6. Boost Sales: Using Ads and Promotions
Building upon the concept of strategic pricing, consider implementing targeted promotions and advertising campaigns to further incentivize customer purchases of slow-moving inventory.
Sponsored product ads or limited-time discounts can prove to be effective tools in this regard. While the sale price itself may be lower than your initial profit margin, the increased sales velocity can ultimately generate greater overall profit compared to incurring long-term storage fees.
Explore various advertising options offered by Amazon, such as sponsored product or sponsored brand ads, to strategically target potential customers and revitalize sales for stagnant inventory.
7. Restock Timing: Plan Your Shipment
Sellers can employ a strategic approach to inventory restocking to minimize long-term storage fees.
Amazon now assesses aged inventory monthly, on the 15th, so there is no twice-a-year deadline to plan around. Focus on sell-through instead. Keep each unit’s age under 181 days, and remove or liquidate anything that will not sell before it crosses that line.
This approach effectively reduces the risk of incurring long-term storage fees and optimizes your utilization of Amazon’s warehouse space.
8. Go for Automatic Removals
To streamline the process and free yourself from the burden of constant monitoring, Amazon offers automated removal settings for non-selling inventory. These settings empower you to configure automatic removal of all items susceptible to long-term storage fees, or you can choose to target specific price ranges for removal.
Automatic removals handle this for you, so you do not need to track each unit’s age by hand before the monthly assessment on the 15th.
This automation not only saves your valuable time but also ensures compliance with Amazon’s storage policies, ultimately safeguarding you from unnecessary fees and streamlining your overall inventory management experience.
DID YOU KNOW?
Amazon ages your inventory on a first-in, first-out basis across the whole network. When a unit sells or gets removed, Amazon clears the oldest stock on record first. You cannot reset an item’s age by sending in fresh units.Amazon no longer runs a twice-a-year cleanup. It takes an inventory snapshot on the 15th of every month. Any unit past 181 days on that date gets the Aged Inventory Surcharge, on top of regular storage.
Two reports help you stay ahead. The Recommended Removal Report flags units nearing the surcharge so you can remove or liquidate them. The FBA Inventory Age report shows your age buckets so you can act before stock crosses 181 days.
Two corrections here matter most. The old “twice a year, February 15 and August 15, 365 days” model is gone. And the claim that Amazon does not use FIFO is backwards: Amazon calculates inventory age on a first-in, first-out basis across all fulfillment centers.
Final Words
Mastering Amazon’s storage landscape is essential for any seller’s success.
The strategies outlined here, from automated removals to pinpointing slow-moving products and optimizing restocking, equip you to navigate long-term storage fees effectively.
With a proactive approach and these valuable tools at your disposal, you can ensure your profits remain healthy and your Amazon business flourishes.
So, take control today and put these tips into action to keep storage fees at bay and propel your business forward.
Diggy oversees comprehensive fulfillment strategies for eCommerce brands at AMZ Prep, bringing deep expertise in warehouse operations and shipping optimization. His strategic background includes serving as account director at Slate Asset Management, where he developed unique insights that now enhance his supply chain optimization approach. At AMZ Prep, he works closely with supply chain teams to ensure seamless product availability during peak seasons and promotional events. His analytical expertise in fulfillment KPIs has helped brands reduce shipping costs by 20% while improving delivery reliability.
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