Amazon’s Fulfillment by Amazon (FBA) storage fees are a critical component of any seller’s overall costs. Understanding how much Amazon charges for storage and how to calculate these fees properly is essential for maximizing profits and making informed business decisions.
Amazon charges for storage based on the volume of space your products take up in their fulfillment centers. The fees are categorized into two types: monthly inventory storage fees and long-term storage fees.
Monthly inventory storage fees are charged on a monthly basis and are calculated based on the volume of space your products occupy in cubic feet. Amazon charges $0.75 per cubic foot for standard-size items from January to September, and $2.40 per cubic foot for October to December. For oversized items, the rates are higher, with $0.48 per cubic foot from January to September, and $1.20 per cubic foot for October to December.
To calculate your monthly inventory storage fees, multiply the total volume of your products in cubic feet by the applicable rate based on the time of year.
Long-term storage fees are charged for items that have been stored in Amazon’s fulfillment centers for more than 365 days. These fees are calculated based on the volume of space your products occupy and are charged at a rate of $6.90 per cubic foot or $0.15 per unit, whichever is greater.
To calculate long-term storage fees, multiply the volume of your products in cubic feet by the rate of $6.90 per cubic foot. If the per-unit rate is higher, multiply the number of units by $0.15 to calculate the total fee.
It’s important to manage your inventory efficiently to minimize storage fees. Consider factors such as product demand, seasonality, and sales velocity to avoid overstocking and accumulating excessive storage fees.
Utilizing Amazon’s FBA calculator can help you estimate storage fees and analyze the impact of different pricing strategies on your profitability. By understanding how much Amazon charges for storage and calculating these fees accurately, you can make informed decisions to optimize your inventory and maximize your profits on the platform.
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