Inventory Management Tips to Avoid Long-Term Storage Fees

Long-term storage fees kick in on inventory sitting in Amazon's fulfillment centers past a set age threshold, on top of regular storage fees — and because they accrue quietly, sellers often notice them only after checking a monthly statement.

Check the inventory age report regularly

This report flags exactly which units are approaching the long-term threshold, giving enough lead time to act — run a promotion, discount the SKU, or initiate a removal before the fee applies.

Use the inventory performance index as an early warning

A declining IPI score often reflects slow-moving or excess stock before it shows up as a specific fee — treating IPI as a leading indicator, not just a compliance number, helps catch the problem earlier.

Forecast before ordering, not after

Overordering based on optimistic demand forecasts is the root cause of most long-term storage situations. A conservative reorder quantity that undershoots slightly is almost always cheaper than excess stock aging into long-term fees.

When to remove instead of wait

If a SKU clearly isn't moving and a discount hasn't helped, a removal order (returning inventory to you or disposing of it) is often cheaper than continuing to pay storage — especially once long-term fees are close to applying.

A monthly routine that catches slow stock early

Surcharges on old stock are assessed on a set day each month, so the work is to look before that date, not after the statement arrives. Put one hour in the calendar for the first week of every month.

• Sort the inventory age report by the oldest bracket and list every SKU in it.
• For each one, divide units on hand by units sold in the last 30 days. That gives the months of cover.
• More than four months of cover means stop reordering that SKU today.
• More than six months means act now: a price cut, a coupon, an ad push, or a removal.

Cheaper ways to clear stock than a removal

A removal order costs a fee per unit and leaves you with boxes to store. Try the low-cost options first.

• A coupon of 10 to 15 percent shows a green badge in search results and often lifts sales within days.
• The outlet and liquidation programs take stock that qualifies and return part of its value.
• Bundling a slow item with a fast one creates a new product and moves both.
• Multichannel fulfillment lets the same units serve orders from your own website.

Compare each option with the cost of waiting. If three more months of storage plus the surcharge is higher than the loss from a discount, take the discount.

Our free FBA fee calculator shows storage cost per unit, which makes that sum quick. For a review of the whole catalog, book a free call.

Frequently asked questions

When does the surcharge start?

The age brackets and rates have changed several times in recent years, and they differ by marketplace. Check the current fee schedule in Seller Central and do not rely on a figure from an old article.

Does a low IPI score limit how much I can send in?

It can. Scores under the published threshold may bring storage limits for the next period. Selling through old stock and fixing stranded listings are the fastest ways to raise it.

Is it better to dispose of stock or have it returned?

Disposal is cheaper per unit. Choose a return only when the goods can be sold elsewhere for more than the fee plus your handling time.

Sources and further reading

Marketplace rules change; these are the official pages to check against before you act on anything here.

• Fulfilment by Amazon (FBA)
• Amazon selling fees and plans
• Listing Health & FBA Reimbursements (our service page)