Now that you know the basic differences between these four types of inventory fees, when exactly are these fees charged?What are the cost components?And how do you calculate it?Keep up with Xiaobian and take a look at more strategies for Amazon Logistics's warehousing costs~

▹ Size Segment: Standard Size
▹ Storage Site: US Station
▹ Current month: August
▹ Volume per item: 0.05 cubic feet
▹ Average number of products stored per day: 100
▹ Dangerous Goods Classification: Non-Dangerous Goods

Total monthly storage fee = average number of items per month x volume per item x cost per cubic foot = 100 X 0.05 X $0.87 = $4.35

❤️ Note, if the product is considered dangerous goods, please refer separately to the Amazon Logistics Dangerous Goods Program:
https://sellercentral.amazon.com/gp/help/ZLZBQ7W6QZRKWWK

Starting in 2023, Amazon's US and European sites will levy a storage utilization surcharge for sellers who store large amounts of inventory in fulfillment centers. The surcharge is calculated based on the storage utilization rate, and the storage utilization rate for the last day of the specific month will be calculated.

Examples
For inventory stored in April 2023, the storage utilization rate will be calculated on April 30, and this surcharge will be charged when the storage fee is collected in May 2023.

Only for professional sellers with a storage utilization rate greater than 26 weeks. If the seller meets the criteria for the storage utilization surcharge , this surcharge will be included in the basic monthly storage fee. This surcharge is calculated based on the average daily volume of space occupied by the seller's inventory in the fulfillment center, and will result in an increase in the total monthly storage fee.

/ATTENTION/
The following sellers are not required to pay a storage utilization surcharge; they only need to pay the relevant fees according to the basic rate of the monthly storage fee:
① Sellers who use professional accounts and have a storage utilization rate of at least 26 weeks;
② New sellers who have sent their first inventory shipment to Amazon within 52 weeks;
③ Sellers using personal accounts;
④ Sellers with an average daily inventory of less than 25 cubic feet.

You can check the current storage utilization rate through the “Storage Utilization” panel under “Inventory” - “Control Panel” on the left side menu of Seller Central.

🔗 Copy link to open in browser
https://sellercentral.amazon.com/inventory-performance/dashboard/

If inventory is overloaded or stored indefinitely in fulfillment centers, Amazon will not be able to provide enough storage space for popular products.
On the 15th of every month, Amazon will evaluate the surcharge for overage inventory and calculate storage age according to the first-in, first-out (FIFO) principle across the entire distribution network. Regardless of which products are actually shipped or removed, Amazon Logistics will prioritize the deduction of sold or removed products from the inventory that has been in the delivery network the longest. Note that each Amazon site defines overage inventory differently.

It is billed once a month, usually between the 18th and 22nd of the month.

🔗 Copy link to open in browser
https://sellercentral.amazon.com/inventory-performance/dashboard/

① Use “Manage Inventory Status” to determine which ASINs are subject to an overage inventory surcharge, including ASINs that are required to pay this fee within 60 days.
🔗 Copy link to open in browser
https://sellercentral.amazon.com/inventoryplanning/manageinventoryhealth

② Log in to Seller Central, and in “Data Report > Inventory and Sales Report”, click “Inventory > Amazon Logistics Inventory > Request to download a.csv file” on the left, or download an existing report to view specific details.

In the downloaded report, filter conditions with values greater than 0 are set for column M to filter out inventory that has been stored for more than a certain number of days and is being charged an overage inventory surcharge. Among the selected SKUs, you can refer to the sales rate in the AH column to decide whether to reduce the price to stimulate sales, or avoid high fees by removing inventory.

* The table also includes many details about the seller's inventory, which can be filtered and sorted based on different criteria to make decisions.

Recommended Removal report

The Recommended Removal Report allows you to determine which products are subject to an overage inventory surcharge. This report automatically calculates the number of items the seller needs to remove to avoid paying the overage inventory surcharge by ASIN (assuming no more related sales occur), and lists the items that are subject to the surcharge within 30 days prior to each charge date.
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https://sellercentral.amazon.com/reportcentral/RECOMMENDED_REMOVAL/0

The inventory storage overage fee is separate from the monthly storage fee and the overage inventory surcharge. If the seller's inventory in Amazon fulfillment centers exceeds the storage limit on any day of the month, they will be required to pay the monthly inventory storage overage fee for the portion of inventory that exceeds the limit.

Sellers can check the status of inventory limits at any time in the “Capacity Manager”. If you need additional storage, you can request additional storage by clicking the “Create New Request” button below.

🔗 Copy the link to open in your browser to view
https://sellercentral.amazon.com/inventory-storage/storage-request/limit-increase

You can check the status of your inventory limit at any time by checking “Storage Capacity” in the “Inventory Performance” dashboard or in the shipment processing progress. If the limit is exceeded, you will see an alert icon.

🔗 Copy the link to open in your browser to view
https://sellercentral.amazon.com/inventory-performance/dashboard/

If the seller exceeds the capacity limit, the current usage value can be subtracted from the current storage limit value to calculate the current overrun value for that storage type. For each storage type that exceeds the limit, sellers are required to pay an inventory storage overage fee, and if this happens, Amazon will send a monthly reminder to the seller.

The storage overage fee is based on the number of days the storage limit has been exceeded. The overstorage fee is charged monthly at the standard of $10 per cubic foot and is calculated based on the daily average volume (in cubic feet) of all space occupied by the seller in Amazon fulfillment centers in excess of the storage limit.