Long-Term Storage Fee

Long-term fees turn slow sellers into a real cost, so they push brands to liquidate, remove, or stop reordering aged inventory. Track inventory age by SKU to avoid them.

How do I avoid long-term storage fees?

Monitor inventory age by SKU, send smaller and more frequent inbound shipments, and remove, liquidate, or discount aged units before they reach the fee threshold. Fee rules differ by provider, so check the exact age cutoffs.

• Dead StockInventory that has not sold for a long period and is unlikely to sell at full price.
• Carrying CostThe total cost of holding inventory over time, including capital, storage, insurance, shrinkage, and obsolescence.
• Fulfillment by AmazonAmazon's service in which sellers send inventory to Amazon fulfillment centers and Amazon picks, packs, ships, and handles returns.
• Days of InventoryThe number of days current inventory will last at the expected sales rate. Also called days of supply or days inventory outstanding.