How are Amazon FBA long term storage fees calculated now? At the end of last year they changed to applying long term fees monthly for inventory stored for more than 180 days. Did it change again?
When researching I found that, as of February 15, 2019, long term storage fees are still being applied on the 15th of each month. The most recent change was to when long term fees begin accruing and the size of the fee. Inventory for which long term fees are applied was reverted back to anything in storage for more than 365 days.
Long term fees are calculated based on square footage taken up in the warehouse. The fee is now $6.90 per cubic foot per unit or $0.15 per unit, whichever is greater. The minimum fee, $0.15, was dropped from $0.50 per unit which is great for small items.
Long term fee timelines for items enrolled in the Small & Light Program were not reverted however. They begin accruing long term fees after 180 days. Fees from 181-365 days are $0.25 per unit. After 365 days, they are charge $0.50 per unit. Be careful with sending too much inventory into the Small and Light Program. Since retail price must be less than $15, margins are eaten quickly.
1 Like