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Long-Term Storage Fees

Long-Term Storage Fees – Amazon Inventory Glossary
Quick take
Long-term storage fees are the cumulative costs of holding inventory in Amazon FBA warehouses beyond a normal sell-through cycle. Regular monthly storage runs $0.78 per cubic foot (January through September) and $2.40 per cubic foot in Q4. Inventory past 180 days triggers the aged inventory surcharge, adding $0.50 to $6.90 per cubic foot on top.

Definition

Long-term storage fees encompass every storage-related charge that accumulates when FBA inventory sits unsold for extended periods. This includes two distinct cost layers: the regular monthly storage fee that applies to all inventory from day one, and the aged inventory surcharge that kicks in after 180 days.

The distinction matters because many sellers only watch the surcharge and ignore the compounding monthly fees underneath it. A unit that takes six months to sell has already accumulated $4.68 per cubic foot in regular storage fees (6 × $0.78) before any surcharge applies. Add Q4 rates and the math gets worse fast.

For standard-size products, Amazon charges storage per cubic foot based on volume (length × width × height ÷ 1,728). The cubic footage determines both your regular monthly bill and your surcharge exposure. Oversized products actually pay a lower per-cubic-foot rate ($0.56 vs $0.78), but their larger volume means the total dollar amount is often higher.

2026 long-term storage fee rates

Monthly storage fees (all inventory)

Size tier Jan–Sep Oct–Dec
Standard-size$0.78 / cu ft$2.40 / cu ft
Oversize$0.56 / cu ft$1.40 / cu ft

Aged inventory surcharge (on top of monthly fees)

Inventory age Surcharge / cu ft Per 0.15 cu ft unit
0–180 days$0.00$0.00
181–270 days$0.50$0.08
271–365 days$5.45$0.82
365+ days$6.90 (or $0.30/unit)$1.04 (or $0.30)

Example: 50 unsold units sitting for 11 months

50 units of a standard-size product, each 0.2 cu ft (10 × 7 × 5 inches). Total volume: 10 cu ft. Product cost: $6 per unit ($300 total invested). Sent to FBA on January 1. None sell.

Period Rate breakdown Cost
Jan–Jun (months 1–6)10 cu ft × $0.78 × 6$46.80
Jul–Sep (months 7–9, day 181+)10 cu ft × ($0.78 + $0.50) × 3$38.40
Oct–Nov (months 10–11, day 271+, Q4)10 cu ft × ($2.40 + $5.45) × 2$157.00
Total storage cost (11 months)$242.20
% of inventory value80.7%

In under a year, storage fees consumed 81% of the inventory value. If these units sit through December and into January (past 365 days), the rate jumps to $6.90 per cubic foot plus $0.78 monthly, adding another $76.80 per month. At that point, the removal order at $0.97 per unit ($48.50 total) is dramatically cheaper than one more month of storage.

Why long-term storage fees compound faster than expected

Two cost curves collide at the worst possible time. Q4 storage rates triple from $0.78 to $2.40 per cubic foot in the exact months when aged inventory crosses the 271-day surcharge threshold (if sent in January). The combined rate of $7.85 per cubic foot ($2.40 + $5.45) is 10× the base rate of $0.78. This hockey-stick cost curve catches sellers who treat storage as a rounding error.

For excess inventory, Amazon Warehousing and Distribution (AWD) charges a flat $0.56 per cubic foot with no aged surcharge, regardless of how long units sit. Staging slow-moving inventory in AWD and drip-feeding to FBA as needed avoids both the surcharge tiers and the Q4 rate spike. The tradeoff is longer replenishment lead times, which requires tighter demand forecasting.

Where this shows up in Profit Hawk
Profit Hawk flags SKUs approaching the 180-day mark before surcharges hit. The storage cost tracker shows exactly how much each unit has cost you in fees and projects the next 90 days of storage exposure so you can act before the 271-day cliff. Start a free trial.

Common mistakes

  1. Only tracking the aged surcharge, ignoring regular monthly storage. Monthly fees at $0.78 per cubic foot accumulate from day one. On 10 cu ft of inventory, that is $7.80 per month or $70.20 in the first six months before any surcharge applies.
  2. Sending excess inventory before Q4. Storage rates triple from October through December. Sending six months of supply in September means paying $2.40 per cubic foot on units that will not sell until December or January. Stage excess in AWD or a 3PL and replenish weekly.
  3. Not factoring storage into per-unit profitability. Storage cost per unit depends on sell-through velocity. A product that turns in 30 days costs $0.04 per unit in storage. The same product turning in 120 days costs $0.16. That difference matters at scale.

Related terms

Frequently asked questions

When does Amazon charge long-term storage fees?

Regular monthly storage fees are charged on the 15th of every month based on your average daily inventory volume. The aged inventory surcharge is an additional charge that applies to units stored longer than 180 days, also assessed monthly.

How can I avoid long-term storage fees?

Match your inbound shipments to actual sell-through velocity so inventory turns before 180 days. Set calendar alerts at 120 and 150 days to create removal orders, run promotions, or liquidate slow movers before surcharges kick in.

Is it cheaper to remove inventory or pay the surcharge?

Almost always cheaper to remove. A removal order costs $0.97 to $1.04 per standard-size unit. The aged surcharge at the 271-day tier ($5.45 per cubic foot) costs about $0.82 per month for a 0.15 cu ft product, and it compounds every month the unit stays.

Do long-term storage fees affect my IPI score?

Yes. Aged inventory increases your excess inventory percentage, which is one of the four IPI inputs. A low IPI score (below 400) can trigger restock limits, compounding the problem by restricting how much new, fast-selling inventory you can send in.

Does Amazon Warehousing and Distribution (AWD) have long-term storage fees?

AWD charges a flat $0.56 per cubic foot per month with no aged inventory surcharge regardless of how long units sit. This makes AWD significantly cheaper for slow-moving inventory that would trigger surcharges in standard FBA warehouses.

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