Selling on Amazon can be highly rewarding, but holding onto old inventory in FBA warehouses can hurt your profits. When your inventory sits for over 365 days, Amazon FBA long-term storage fees kick in—cutting into your margins fast. These added costs can be avoided with the right inventory management strategy.
In this blog, you’ll learn why long-term storage fees exist, how they work, and what you can do to avoid them. We’ll walk you through simple, effective tips to reduce or remove aged inventory, helping you stay lean, profitable, and in control of your Amazon FBA business.
Understand What Long-Term Storage Fees Are
Amazon checks your inventory every month. If any item stays longer than 365 days, it becomes aged inventory. Amazon charges £5.10 per cubic foot or £0.85 per unit, whichever is higher. These fees apply twice a year—in February and August.
Many sellers forget to track the age of their stock. When they do check, it is often too late. Amazon does not remove old stock unless you act. So, it is your job to manage this before charges hit.
To avoid these fees, you need to understand the full cost. These long-term fees add up quickly. Even small items can cost you a lot if left for too long. So you must take early action to avoid them.
Check Your Inventory Age Regularly
You should check your inventory age every week. Amazon provides tools inside Seller Central. Go to the Inventory Age report. It shows how long each item has stayed in the warehouse. You can sort products by age and units.
Do not wait for Amazon to send warnings. Instead, check the report often. This way, you can take fast action. You will also stay ahead of your inventory deadlines.
If you keep checking, you will know which items need help. You can create a removal plan or a discount campaign. These actions can help before the 365-day mark arrives.
Create Removal Orders for Aged Stock
One of the fastest ways to reduce long-term fees is by removing old stock. You can create a removal order directly from Seller Central. This process is easy. You just need to select the aged products and request removal.
When you remove inventory, Amazon ships it back to you or disposes of it. You can choose what happens. You may sell these items on other platforms like eBay or your own website. This will help recover some profit.
Do not wait too long to remove aged items. If you act before the 365-day deadline, you will avoid extra costs. Amazon usually processes removal orders within 14 business days.
Run Discounts and Promotions to Clear Stock
Discounts attract buyers quickly. When you lower your prices, you can move aged stock faster. Use Amazon’s “Manage Inventory” page to apply price cuts. Try a limited-time deal or a coupon offer.
Buyers love saving money. If they see a discount, they often buy right away. You can also add “Buy One, Get One” offers. This type of promotion clears inventory fast. It also improves your sales rank.
Do not forget to promote your deals. Use social media, email lists, and ads. A small budget can push more traffic to your product page. More traffic often means faster sales and fewer storage worries.
Improve Your Product Listings to Boost Sales
Sometimes, products do not sell because listings are weak. You must check your titles, images, and descriptions. Make them clear, short, and easy to read. Use high-quality images that show your product well.
Add keywords in your title and bullet points. These keywords help your product show up in searches. You should also use enhanced brand content or A+ content. These features make your page look better.
When your listing looks great, buyers trust it more. They click and buy faster. This leads to quicker sales and fewer aged items in storage.
Learn more inventory management techniques
Bundle Slow-Moving Products with Best Sellers
You can create bundles using aged stock and best sellers. Bundles offer more value. Buyers often prefer them. For example, pair a slow-selling phone case with a popular screen protector.
Bundling lets you move old items faster. It also raises your average order value. You can set these bundles on Amazon by creating a new listing with the bundle name, images, and bullet points.
Do not forget to price your bundle well. Make sure it gives buyers a reason to buy. The better the deal, the faster it sells. This helps reduce old stock and clears your warehouse space.
Use Amazon Outlet Deals
Amazon allows you to offer outlet deals for slow stock. This program helps sellers clear aged inventory.
Here’s how Amazon Outlet can help:
- Outlet deals show your product on special pages.
- Shoppers see these offers when looking for deals.
- You can set a discount and increase sales speed.
- Amazon may promote these deals to more buyers.
- It’s free to join, and it helps move old inventory fast.
You can apply through the Manage Excess Inventory tab. Amazon picks products that qualify for outlet deals. If accepted, your product gets listed in the outlet section for a limited time.
Use Removal Promotions Offered by Amazon
Amazon sometimes offers free removal events. During these times, Amazon waives the removal fee. You must keep an eye on your email or dashboard. These events happen a few times a year.
If you get a notification, act fast. Create removal orders during the promo period. You will save money on removal costs. Also, you will avoid long-term storage charges at the same time.
You can store these removed units at your home or a third-party warehouse. Later, you can relist them on Amazon when the time is right. This step keeps your account clean and avoids extra fees.
Restock Only What Sells Fast
You must not send too much inventory. Send only what sells well. If a product moves slowly, lower your restock amount. You can track sell-through rates using the FBA dashboard.
Faster-selling items reduce storage time. You won’t face long-term fees if products sell out quickly. Try to restock just enough to meet demand. Avoid sending six months of stock if three months is enough.
This plan keeps your inventory fresh. You also keep your cash free to invest in other products. Smart restocking leads to fewer aged units and more profits.
Work with a Third-Party Logistics (3PL) Provider
You can keep some of your stock with a 3PL warehouse. These warehouses hold inventory outside Amazon. When you need to restock, they send it to Amazon. This saves you from long storage fees.
3PLs offer many benefits. They often cost less than Amazon’s storage. You also get more control over when to ship and how much to send. This keeps your FBA inventory light and fresh.
Pick a 3PL close to your main customers. This helps with faster delivery. Also, choose one with experience in Amazon prep and shipping. It makes restocking easier and avoids delays.
Monitor Storage Reports Weekly
You must track your Monthly Storage Fee Report and Inventory Health Report. These tools show you which products are close to the 365-day mark. Set a reminder every week to check these reports.
If you check reports weekly, you stay alert. You will spot problems early. You can take fast action. Waiting too long causes fees and stress.
Amazon gives you all the tools. You just need to use them often. Stay active in managing your stock. It helps you avoid waste and protect profits.
Set Up Alerts and Notifications
Use alerts inside Amazon Seller Central. These alerts warn you before your stock becomes old. Go to your settings and turn on notifications. Choose email or dashboard alerts.
Once alerts are active, you will know when to take action. You won’t miss important dates. These alerts can remind you to lower prices, remove items, or run a campaign.
You can also use inventory software. Some tools track product age and send automatic alerts. These help you act quickly and avoid long-term fees.
If you need help with Amazon FBA inventory or want full account support, you can contact us at Amazon Consultant. We help sellers grow faster and smarter.
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