The long-term storage fee is charged on top of the standard storage charge for inventory that stays in FBA warehouses beyond a set period. On slow-turning products it accumulates to the point of exceeding the product's own cost.
This fee is a quiet margin killer, because with no sales it does not stand out per product in reports; it shows up as a lump on the month-end fee line. The management method is simple: read the aging report regularly and either clear inventory nearing the threshold with a price cut or pull it out of the warehouse with a removal request. Removal has a cost of its own, so the decision is made on the product's future sales outlook. For seasonal products, shipment timing determines the fee directly.
This fee is a quiet margin killer, because with no sales it does not stand out per product in reports; it shows up as a lump on the month-end fee line. The management method is simple: read the aging report regularly and either clear inventory nearing the threshold with a price cut or pull it out of the warehouse with a removal request. Removal has a cost of its own, so the decision is made on the product's future sales outlook. For seasonal products, shipment timing determines the fee directly.
This fee is a quiet margin killer, because with no sales it does not stand out per product in reports; it shows up as a lump on the month-end fee line. The management method is simple: read the aging report regularly and either clear inventory nearing the threshold with a price cut or pull it out of the warehouse with …
Knowing the term is not enough; you need to know which lever to pull. In a free 30-minute call we look at your store's actual numbers.
Get a free analysis