If you have too much inventory at Amazon you will be paying storage fees.
FBA long-term storage fees
On the 15th of each month, Fulfillment by Amazon (FBA) conducts an inventory cleanup. On these dates, inventory that has been in US fulfillment centers for more than 365 days incurs a long-term storage fee (LTSF) of $6.90 per cubic foot or a $0.15 per-unit long-term storage fee, whichever is greater.
As announced in the 2019 US FBA fee changes summary, we are eliminating long-term storage fees for units that have been in a fulfillment center for 181 to 365 days. The last long-term storage fee charge for inventory in a fulfillment center for 181 to 365 days was January 15, 2019. This change is not retroactive. Any previous 181 to 365 day charges will not be reimbursed.
Inventory enrolled in FBA Small and Light remains subject to LTSF charges on units in fulfillment centers between 181 to 365 days. See FBA Small and Light
for current LTSF rates for these units.
Long-term storage fees, February 15, 2019, and after
|Inventory cleanup date
||Items in a fulfillment center more than 365 days
|15th of every month
||$6.90 per cubic foot
So to help alleviate those storage fees, you should look at the inventory age and create removal orders on bad inventory.
To find inventory age click on “Inventory Planning” under the “Inventory” tab.
This will take you to the inventory dashboard. Here you will click on “Inventory Age” to view how many days each product has been at Amazon’s warehouse. To view overstocked items you can click on “Manage Excess Inventory”.
Then to do a removal order click https://sellercentral.amazon.com/inventory/
And click the edit drop down to do a removal order.
If you need more assistance contact us here.
I’ve been getting a lot of questions about whether inventory will be limited, and when the magic date comes into effect for FBA inventory limitations. With the new FBA Inventory Storage Limits, if your Inventory Performance Index is less than 350 for six weeks before the end of a quarter you will be notified of your potential storage limits. If your score is still less than 350 on the final day of the quarter, the limits will apply for the next quarter. This means that your score of less than 350 for six consecutive weeks before the current quarter ends and at the end of the current quarter will have a limited storage.
In order for your FBA Inventory Storage Limits to be unlimited, you may need to maintain your score of 350 or greater than for standard-size, oversize, apparel, and footwear items. You will only have storage limits if your Inventory Performance Index score is less than 350 six weeks before the end of the current quarter and on the last day of the current quarter. In this example, you would not have storage limits if your score is more than 350 first score check which is six weeks before the quarter ended or the final score check.
Quarterly storage limits are based on 1) your sales volume, 2) your historical Inventory Performance Index scores, and 3) available fulfillment center capacity. Sellers with consistently higher scores will receive higher storage limits, adjusted for sales volume and available capacity. When setting limits for an upcoming quarter, both your recent sales volume and seasonal volume from the last year are considered.
Seller Central Help File: https://sellercentral.amazon.com/gp/help/GXLRKWL8L5BMSHWB?referral=A3TI3F8839JJFF_A2VMNEEYCY3YGZ