Understanding how Amazon charges for storing your inventory is essential for anyone using Fulfillment by Amazon. Storage fees can quietly eat into your margins if you are not paying attention, and for sellers managing large volumes or slow-moving stock, the costs can add up quickly. This article walks you through exactly how Amazon FBA storage fees work, what drives the rates, and how to keep those costs under control.
What are Amazon FBA storage fees?
Amazon FBA storage fees are monthly charges that Amazon applies to sellers for storing their inventory in Amazon’s fulfillment centers. These fees are calculated based on the volume of space your products occupy, measured in cubic feet, and they vary depending on the time of year and the size category of your items.
There are two main types of storage fees sellers need to be aware of:
- Monthly inventory storage fees: Charged for all units stored in a fulfillment center during a given month
- Aged inventory surcharges (formerly called long-term storage fees): Applied to units that have been sitting in a fulfillment center for an extended period
These fees apply to all sellers using the FBA program, regardless of whether you are selling on Amazon.com, Amazon.co.uk, Amazon.de, or any other Amazon marketplace. Understanding both fee types is the foundation for managing your FBA cost structure effectively.
How does Amazon calculate monthly FBA storage fees?
Amazon calculates monthly FBA storage fees by multiplying the volume your inventory occupies (in cubic feet) by a rate per cubic foot. The rate differs based on two variables: the product size tier (standard-size versus oversized) and the time of year (peak season versus off-peak).
The fee structure follows a seasonal pricing model. The months of January through September are considered off-peak, and rates are lower during this period. October through December are peak months, when fulfillment centers experience higher demand, and storage rates increase significantly as a result.
Here is how the calculation works in practice:
- Amazon measures the dimensions and weight of your product to assign it a size tier
- The volume your units occupy in the fulfillment center is calculated in cubic feet
- That volume is multiplied by the applicable rate per cubic foot for the current month and size tier
- The resulting fee is charged to your seller account, typically around the 7th to 15th of the following month
It is worth noting that Amazon assesses your average daily inventory volume throughout each month, not just a snapshot at month end. This means that receiving a large shipment late in the month still contributes to your storage fee for that month.
What factors affect your Amazon FBA storage rate?
Several factors directly influence how much you pay in Amazon FBA storage fees. The most significant are product size tier, seasonality, and how long your inventory has been stored. Understanding these variables helps you forecast costs and make smarter restocking decisions.
Product size tier
Standard-size products occupy less space per unit and are charged at a lower rate than oversized items. If your product is borderline between size tiers, even small changes in packaging dimensions can move you into a more expensive category. Reviewing your product dimensions and ensuring they are accurately recorded in Seller Central is a worthwhile step.
Time of year
Peak season rates (October through December) are substantially higher than off-peak rates. Sending large quantities of inventory into Amazon’s warehouses just before Q4 without a clear sell-through plan can result in significant storage costs if products do not move as expected.
Inventory turnover
Products that sell quickly generate lower cumulative storage fees than slow-moving items. A high sell-through rate keeps your storage footprint small and reduces the risk of crossing the thresholds that trigger aged inventory surcharges.
Fulfillment center placement
When Amazon distributes your inventory across multiple fulfillment centers, the total cubic footage remains the same, but it affects how efficiently your stock is positioned relative to customer demand. While this does not directly change your per-cubic-foot rate, it influences how quickly inventory sells, which in turn affects your storage costs over time.
What are Amazon’s aged inventory surcharges and when do they apply?
Amazon’s aged inventory surcharges are additional fees charged on top of regular monthly storage fees for inventory that has been stored in a fulfillment center for more than 181 days. These surcharges are designed to encourage sellers to maintain lean, fast-moving inventory and to prevent fulfillment centers from becoming long-term warehouses.
The surcharge structure works in tiers based on how long a unit has been stored:
- 181 to 270 days: A surcharge applies at a rate per cubic foot, added on top of the standard monthly fee
- 271 to 365 days: The surcharge increases at this stage
- More than 365 days: The highest surcharge tier applies, making it very expensive to hold slow-moving inventory for extended periods
Amazon assesses aged inventory surcharges on the 15th of each month. Sellers can view their at-risk inventory in the Inventory Age report within Seller Central, which shows how long each ASIN has been in storage and flags units approaching the 181-day threshold.
The practical implication is clear: if a product has been sitting in an Amazon warehouse for six months without selling, it is likely costing you more in storage surcharges than it is worth keeping there. Running promotions, adjusting pricing, or requesting a removal order are all options worth considering before the surcharge clock reaches the higher tiers.
How can you reduce Amazon FBA storage costs?
Reducing Amazon FBA storage costs comes down to maintaining tighter control over your inventory levels, improving sell-through rates, and acting early on slow-moving stock before aged inventory surcharges kick in. A proactive approach to inventory management is consistently more effective than reacting to fees after they have already been charged.
Here are the most practical steps sellers can take:
- Monitor inventory age regularly: Use the Inventory Age and Inventory Health reports in Seller Central to identify units approaching the 181-day threshold
- Optimize restock quantities: Send smaller, more frequent shipments rather than large batches, especially for products with unpredictable demand
- Run targeted promotions on slow movers: A temporary price reduction or a coupon can accelerate sell-through and prevent surcharges from accumulating
- Use removal or disposal orders strategically: If a product is unlikely to sell before surcharges exceed its value, removing it from Amazon’s fulfillment network is often the more cost-effective choice
- Review product dimensions: Ensure your products are classified in the correct size tier, as incorrect dimensions can lead to unnecessarily high storage rates
- Time your shipments carefully: Avoid sending large volumes into Amazon warehouses just before the October peak season rate increase unless you are confident in rapid sell-through
- Leverage FBA inventory placement settings: Where possible, manage how Amazon distributes your stock to improve proximity to demand and increase turnover speed
Consistent attention to these levers, combined with accurate demand forecasting, is what separates sellers who treat storage fees as a manageable cost of doing business from those who are caught off guard by unexpected charges.
How Distrilink helps you manage Amazon FBA costs
Managing Amazon FBA storage fees effectively requires the right combination of data, operational discipline, and marketplace expertise. At Distrilink, we help brands grow quickly and in a controlled way on online marketplaces. Rather than building an entire marketplace team, IT infrastructure, or logistics operation yourself, brands can activate and scale immediately through us.
Here is what we take off your plate:
- Full operational execution: From account activation and listing optimization to logistics and customer service, we handle it end to end
- Inventory and fulfillment management: With our own warehouse and fulfillment infrastructure, we help keep your storage footprint lean and your sell-through rates healthy
- Data-driven approach: Our proprietary Distrilink Acceleration Platform gives you clear, centralized insight into your performance across all marketplaces
- Marketplace connectivity: We are connected to all major European marketplaces, giving your brand immediate reach without the operational complexity
- Proven scale: We represent more than 25 brands and bring over 20 years of retail experience to every partnership
Brands that work with us expand their e-commerce presence without adding complexity, and with full visibility into what is driving their results. If you want to scale on Amazon and other marketplaces without the operational burden, get in touch with us at Distrilink and let us show you how we can help.
Frequently Asked Questions
How do I find out exactly how much I am currently paying in Amazon FBA storage fees?
You can find a detailed breakdown of your storage fees in Seller Central under Reports > Payments > Fee Preview, as well as in the Monthly Storage Fees report. The Inventory Age and Inventory Health dashboards also give you a forward-looking view of which ASINs are accumulating costs and approaching aged inventory surcharge thresholds. Reviewing these reports at least once a month is the most reliable way to stay on top of your storage spend before it becomes a problem.
What is the difference between a removal order and a disposal order, and when should I use each one?
A removal order sends your inventory back to an address you specify, while a disposal order instructs Amazon to discard the units on your behalf — both options come with a per-unit fee. Removal makes sense when the products still have resale value through other channels, such as your own website, a third-party marketplace, or a liquidation partner. Disposal is typically the more cost-effective choice when the per-unit value of the product is lower than the cost of shipping it back and handling it again.
Can Amazon change its FBA storage fee rates, and how will I know if they do?
Yes, Amazon periodically updates its fee structure, and changes to storage rates are not uncommon. Amazon is required to give sellers at least 30 days' notice before implementing fee changes, and announcements are typically made through Seller Central notifications and the official Amazon Seller News page. It is good practice to review the FBA fee schedule at the start of each year and again ahead of Q4 to ensure your margin calculations reflect the most current rates.
Does Amazon charge storage fees on inventory that has not yet been received or processed at the fulfillment center?
No, storage fees only apply once Amazon has fully received and checked in your inventory at the fulfillment center. Units that are in transit or still in a receiving queue are not yet subject to storage fees. However, once units are checked in, they immediately begin counting toward your monthly average daily inventory volume, so processing delays at the fulfillment center do not provide a grace period once receiving is complete.
How does the aged inventory surcharge interact with regular monthly storage fees — are they charged separately?
Yes, they are charged separately and on different schedules. Monthly storage fees are assessed based on your average daily inventory volume throughout the month and are typically charged between the 7th and 15th of the following month. Aged inventory surcharges, by contrast, are assessed on the 15th of each month for units that have crossed the relevant storage duration thresholds. This means that for slow-moving inventory, you can end up paying both the standard monthly storage fee and the aged inventory surcharge simultaneously, which is why acting before the 181-day mark is so important.
What is a good sell-through rate to aim for to avoid aged inventory surcharges?
As a general benchmark, Amazon itself uses a sell-through rate calculation in the Inventory Performance Index (IPI) score, and a rate of 2.0 or higher is typically considered healthy. In practical terms, this means selling at least twice the quantity you have stored over a rolling 90-day period. If a product's sell-through rate is consistently low, it is worth evaluating whether the issue is pricing, listing quality, demand forecasting, or simply a product that is not well-suited to the FBA model.
Is it possible to avoid peak season storage fee increases while still being ready for Q4 demand?
Yes, with careful planning it is possible to balance Q4 readiness against higher storage costs. One approach is to stagger your shipments so that inventory arrives in smaller batches throughout October and November rather than all at once, keeping your average daily volume — and therefore your storage fees — lower at any given point. Working with a third-party logistics provider or a marketplace partner that holds stock in its own warehouse before forwarding to Amazon can also give you more flexibility in timing your FBA inbounds around peak rate periods.
