FBA Storage Fees
Amazon’s fulfillment centers charge for storage of FBA inventory. Amazon charges storage fees to sellers through Seller Central. After all, storage at Amazon’s fulfillment centers is finite. And Amazon does not value all products equally. For example, FBA Hazmat goods warrant higher storage rates. Similarly, long term storage (over 365 days) also incur higher storage rates. Additionally, seasonality and product size impacts storage rates. There are solutions to reduce storage costs at Amazon. Firstly, this guide provides a walk-through on locating storage costs in Amazon. Afterwards, we reveal how to check & increase inventory limits in Seller Central. Overall, this post examines how Amazon applies storage rates, how to locate them, and how to reduce these fees.
When Does Amazon Charge Storage Fees?
Amazon charges fees on the 7th & 15th of each month in your Seller Central Account. The charges are deducted from your account balance. As such, you do not need to actively pay the storage charges.
How to Find My FBA Storage Fees?
Firstly, to access your monthly storage fees – Login to Seller Central.
Second, click on this link.
This directs you to the Report Download Page.
Third, download your storage fees report. This helps you understand how much storage Amazon is charging each month. In fact, it provides a detailed itemization of storage categories for each product in stock. However, it does not show you how much you can store.
Lastly, remember these variables when looking to cut costs on Fba Storage Fees:
- Product Size Tier
- Current Month
- Product Volume
- Average Daily Units
- Dangerous Goods Classification
But, be sure to read more in the link above for further details.
Amazon FBA Storage Limits
All professional Seller Central accounts receive a minimum of 25 cubic feet for storage. Amazon increases storage limits with time and sales. But there’s a catch…you need a strong IPI. What’s the IPI?
Inventory Performance Index – How Amazon Awards More Storage
Your IPI score determines your allotted space for inventory at an Amazon Fullfilment Center. But what determines your IPI score?
- Excess Inventory
- Sell Through Rate
- Stranded Products
- In-Stock Inventory
Want to know more about your IPI score? Read the two minute article about Storage Limits, linked just above.
In the mean time, FbaZoom recommends these tips to keep your IPI strong –
- Avoid excess and aged inventory. Maintain enough inventory for only 30 to 60 days of sales.
- Improve your 90-day rolling sell-through rate.
- Fix stranded listings to ensure inventory is buyable.
- Increase sales by keeping popular items in stock.
Overall, sellers with consistently high IPI scores and strong sales volume earn higher storage limits from Amazon.
How To Increase FBA Storage Limit?
Sellers cannot purchase new storage limits. However, we can offer tips to boost storage offers from Amazon. Firstly, Boost sales. How? Decrease product prices. Secondly, boost PCP ads for higher sales. Thirdly, review, fix and optimize products. Products at Amazon cannot sell if listings are dormant or inactive. Lastly…well, read the linked post above to know the last pro-tip for veteran sellers that we recommend.
How To Check FBA Storage Limits?
Amazon checks on your storage limits every quarter. However, you should be checking inventory levels weekly. But, you should know your FBA inventory limit as well. This helps forecast future product purchases from the factory. A process where you must balance the cubic volume of your total purchase order and its consequent storage costs vs the per unit discounts provided based bigger bulk purchases.
Consequently, we listed some quick steps below to locate your Amazon storage limits. However, for a fully detailed walk-through on examining storage limits, read the link above.
- Firstly, inside Seller Central, click on upper right corner Menu icon.
- Secondly, from that list, select the Inventory Tab.
- Thirdly, next, under the inventory tab, select Inventory Planning. This generates your IPI dashboard.
- Fourthly, next to the Dashboard Tab, select Performance.
- Lastly, at the bottom of the right corner, look two pop up menus. The first is titled Restock Limits. The second is titled Storage Volume.
What Increases FBA Storage Fees?
FBA Long Term Storage
Has your storage sat at Amazon for more than 365 days? If so, you are in trouble! Your regular storage fees still apply. Meanwhile, Amazon starts charging additional ‘long-term storage’ fees. This part of the guide answers questions like:
How Much are FBA Long Term Storage Rates?
$6.90 per cubic foot or $0.15 per unit, whichever is greater. But to learn more and how it applies, read the post.
How to Find my FBA Long Term Storage Rates?
These are instructions for finding Long Term Storage rates in your Seller Central Account. For more info, refer to the post above.
- Click on upper right corner menu icon.
- Select the Inventory Tab.
- Select Inventory Planning.
- Observe your IPI dashboard.
- Next to the Dashboard tab, select Manage My Inventory Health.
- Observe a list of SKU’s populates.
- Review each SKU’s storage statistics here.
Big Products – FBA Oversize Storage
Amazon outlines clear definitions of oversized products. After signing into Seller Central, take a quick look here for a complete guide. But wait, we already did this for you! In short, Amazon bundles their categories into a chart, as seen below:
Now that you know product size – peek inside the post above to calculate its extra cost!
FBA Dangerous Goods Storage
|Dangerous Goods Products|
|January – September||$0.99 per cubic foot||$0.78 per cubic foot|
|October – December||$3.63 per cubic foot||$2.43 per cubic foot|
Indeed, FBA Dangerous Goods receive heightened storage rates. There is higher risk with these products. Therefore, Amazon assumes a higher liability to store the goods. To illustrate, take a look at the rates below and read more here about FBA Dangerous Goods.