The Full Picture of Inventory Costs
Amazon charges multiple inventory-related fees that collectively represent a significant cost. Understanding each one helps you manage inventory efficiently and avoid unnecessary charges. Many sellers focus only on fulfilment fees while ignoring storage costs that quietly erode their margins — especially on slow-moving products.
Monthly Storage Fees
Amazon charges monthly storage fees based on the volume (cubic feet) your inventory occupies in their fulfilment centres. Rates vary by product size tier and time of year. January through September rates are lower; October through December rates increase significantly as Amazon needs warehouse space for peak season demand. These fees are charged monthly per cubic foot, regardless of whether your products are selling.
Aged Inventory Surcharge
Products stored for more than certain thresholds (typically 181 days and again at 271 and 365 days) incur additional aged inventory surcharges. These charges escalate the longer inventory remains unsold, creating increasing pressure to either sell or remove old stock. The surcharge is designed to discourage sellers from using Amazon's warehouses as long-term storage — they want fast-moving inventory that sells quickly.
Removal and Disposal Fees
If you decide to remove inventory from Amazon (either back to you or for disposal), Amazon charges a per-unit fee. Removal back to you costs more than disposal. These fees mean that even getting rid of unprofitable stock has a cost — factor this into your decision-making when stock is not selling.
Low Inventory Level Fees
Amazon has introduced fees for products with consistently low inventory levels relative to their sales rate. If you frequently run close to zero stock, Amazon may charge additional fees. This encourages sellers to maintain adequate stock levels, which helps Amazon provide consistent customer experience.
Strategies for Minimising Fees
Send inventory in quantities appropriate for your sell-through rate rather than sending everything at once. Monitor inventory age and take action before aged inventory surcharges kick in — promotions, price reductions, or removal orders. Use AWD for bulk storage at lower rates and transfer to FBA as needed. Remove stranded and unfulfillable inventory promptly. Plan Q4 inventory carefully to avoid paying peak storage rates on stock that will not sell until January.
The most cost-efficient approach is lean inventory management — enough stock to avoid stockouts, but not so much that storage fees eat into your margins on slower-selling products.