Amazon FBA Storage Fees Explained - Updated for 2024

19 September 2024
Ben Mathew

If you're using Fulfillment by Amazon (FBA) to streamline your business operations, it's essential to understand the various fees involved. FBA fees include charges for storing, handling, and shipping your products to customers, and they can quickly add up if not managed effectively. This blog provides a detailed breakdown of the key Amazon FBA fees in 2024, how to calculate them, and strategies to minimize these costs.

Key Types of Amazon FBA Fees

Amazon FBA fees fall into several categories, each affecting your profit margins in different ways. Here's a detailed overview of the main types of fees:

1. Fulfillment Fees

Fulfillment fees are the primary charge for sellers using FBA. They are based on the size and weight of the product and cover the cost of picking, packing, shipping, and customer service. Amazon updates these fees annually to reflect changes in operational costs. To see the exact fulfillment fees here’s all the information below ⬇️

Fees for Non-Apparel (Small-Standard Only)👇

Fees for Apparel (Small-Standard Only)👇

2. Monthly Inventory Storage Fees

Amazon charges storage fees for keeping your inventory in their fulfillment centers. The fees depend on the volume of your products (measured in cubic feet) and the time of year. Storage fees are significantly higher during the fourth quarter (October to December) due to increased demand for warehouse space.

To minimize these fees, manage your inventory levels effectively and avoid overstocking during peak season.

3. Aged Inventory Surcharge

Amazon imposes an aged inventory surcharge on items stored in fulfillment centers for more than 365 days. This fee is charged in addition to the regular monthly storage fees.

If you have slow-moving inventory, consider running promotions or using Amazon’s Removal Order Service to avoid long-term storage fees.

4. Removal Order Fees

If you need to remove or dispose of unsellable or excess inventory, Amazon offers removal services. You can have Amazon either return the items to you or dispose of them.

This fee can be significant for high-volume sellers, so it's important to regularly audit your inventory and remove unsellable items before they incur long-term storage fees.

5. Returns Processing Fees

Amazon charges a returns processing fee when they offer free return shipping for products in certain categories. This fee is particularly relevant to sellers in categories such as apparel and shoes.

To minimize return-related expenses, ensure your product listings are accurate, and your products meet customer expectations.

Additional FBA Fees to Be Aware Of

Apart from the major fees listed above, there are other smaller but important fees that can impact your overall costs.

6. Unplanned Service Fees

If your inventory arrives at an Amazon fulfillment center without proper preparation or labeling, Amazon will handle these tasks for you—at a cost.

To avoid these fees, ensure your products meet Amazon’s packaging and labeling requirements before shipping them to a fulfillment center.

7. FBA Inventory Storage Overage Fees

If you exceed your allocated storage capacity at Amazon’s fulfillment centers, you’ll be charged an overage fee.

To avoid this fee, monitor your storage usage in Seller Central and ensure you stay within your allocated capacity limits.

8. Reservation Fees

If you reserve additional storage capacity, Amazon will charge you a reservation fee. This fee is charged if you request additional storage space but fail to generate sales during the period.

This fee applies to sellers who anticipate needing more storage during peak times but are unable to meet the sales volume necessary to offset the reserved space.

How to Reduce Amazon FBA Fees

Now that you know the types of FBA fees and how they work, here are some actionable strategies to help reduce them:

Conclusion

Amazon FBA fees can significantly impact your bottom line, but with careful planning and strategic inventory management, you can reduce these costs and improve your profitability. Regularly reviewing your FBA fees, optimizing your product dimensions, and efficiently managing your inventory are key to long-term success on Amazon.

If you need personalized guidance or help fine-tuning your strategies, Superfuel AI can assist. Our AI-powered assistant analyzes 36+ key Amazon metrics to identify and address the root causes of sales fluctuations, helping you optimize your storefront and boost sales. Reach out to us at [email protected].

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Ben Mathew, Amazon Expert

Ben Mathew is a co-founder at Superfuel, a sales assistant for Amazon sellers. In the past, Ben and his team of e-commerce specialists and software engineers have launched 40+ new brands on Amazon, taking them from zero to bestsellers. In his free time, he is either learning from other top sellers or encouraging his 3 daughters in their love for reading. He is reachable at ben [at] superfuel.io.

FAQs

  1. **What are Amazon FBA fulfillment fees?
    **Amazon FBA fulfillment fees cover the costs of picking, packing, shipping, and handling your products. These fees are based on the size and weight of your products.

  2. **How can I avoid long-term storage fees?
    **To avoid long-term storage fees, regularly audit your inventory and use removal orders to eliminate slow-moving products before they hit the 365-day mark.

  3. **What is the Fee Preview Tool?
    **The Fee Preview Tool in Seller Central helps sellers estimate their fulfillment fees based on product size, weight, and category.

  4. **Are FBA fees higher during peak season?
    **Yes, Amazon increases storage fees during the peak season (October to December) due to higher demand for warehouse space.

  5. **What happens if I exceed my storage limit?
    **If your inventory exceeds your storage limit, Amazon will charge an overage fee based on the volume of excess inventory.