Amazon fulfillment by Amazon or FBA is one of the best services that an E-commerce platform can provide for its customers. Amazon FBA takes all the major steps to provide the most efficient services. The Amazon FBA services include picking, packaging and shipment of the products to its desired destination. Amazon FBA is beneficial for the Amazon sellers and the customers who do shopping from the Amazon platform but the FBA storage fees are expensive .
Every year FBA conducts an inventory cleanup and charges FBA storage fees from the Amazon sellers. On 15 of February and 15 of August the process takes place. The inventory which is in the storage from six to 12 months are charged with a nominal fee of $ 11.25 per cubic feet, while the inventory which is in fulfillment center for more than 12 months has a long term storage fee of $22.50 per cubic feet.
To identify the inventory which is eligible for the criteria of the long term storage fee, it is required to use the Recommended Removals and Inventory Health reports at the next inventory cleanup. The affected inventories of the sellers in fulfillment centers are notified prior to six months from the clean up date. The long term storage fee is calculated by First in First out (FIFO) method.
The monthly FBA storage fees is charged between 7th and 15th of each month. The storage fee for the month of January can be checked by referring to the Payments report for the month of February in between 7th and 15th. The fee depends on the product size and by month and it is calculated in cubic foot. From the month of January – September, the FBA storage fees are $0.64 per cubic foot and from the month of October – December the charges are $ 2.35 per cubic foot for the standard size inventory. However, for the over sized inventory the rates are $0.43 per cubic from January – September and $1.15 per cubic foot in the month of October – December.
Indeed, the long term FBA storage fees is in the addition to the monthly storage fees and those orders which are subject to removed are not charged any fee.