Key takeaways
- Learn the aging thresholds for each marketplace.
- Check age reports weekly.
- Compare promotion, removal and liquidation.
- Fix the ordering habits that created the stock.
Why aged inventory costs more
Fulfillment center space is limited, and slow-moving stock displaces inventory that would sell faster. Amazon therefore applies additional charges to inventory that has been stored beyond certain periods. The thresholds, rates and program names depend on the marketplace and change from time to time.
Know the thresholds
Find the current aging bands for your marketplace in the fee schedule. Note the dates when inventory moves into a higher-cost band, and add them to your planning calendar. Knowing the calendar lets you act before charges start.
Use inventory age reports
Seller Central provides reports and dashboards showing inventory by age. Review them regularly, sort by the oldest and largest quantities and note which products are approaching a threshold.
- Units and value by age band
- Products approaching a threshold
- Sell-through rate per product
- Estimated cost if no action
Decide on actions
Typical options are to lower the price, run a promotion, bundle the item with faster sellers, remove the stock, liquidate or dispose of it. Compare each option's cost and likely result against continuing to pay storage and surcharges.
Pricing and promotion tactics
A modest price reduction may clear stock at lower total cost than paying surcharges. Evaluate the effect on margin, and avoid actions that damage brand perception or violate promotion rules. Test on a small scale first.
Removal and liquidation
If sales are unlikely, removal or liquidation may recover value. Compare expected recovery with fees and effort. Do this before charges accumulate, not after.
Prevent it from recurring
Review ordering habits. Aged stock often results from overbuying, poor forecasting or listing problems that suppress sales. Fix the root cause by improving forecasts, shipping smaller quantities and monitoring listing health.
A worked example
A seller sees a product with ninety days of stock still unsold and a threshold approaching. They run a limited promotion and bundle it with a related product. Sales improve enough to clear most of the inventory before the surcharge applies, and they reduce the next order size.
Common mistakes
Typical mistakes include checking age reports only after charges appear, assuming old stock will sell eventually and ignoring the cost of capital. Add aging checks to your weekly routine.
Questions to ask each week
Which products have the most units in the oldest age band, and what is their sell-through rate? Which products will cross the next threshold within the next month, and what will that cost if nothing changes? Is there a reason the stock is not selling, such as a listing issue, price problem or reduced demand?
Write the answers in a short weekly note with an owner and a decision for each product. A regular, brief review beats an occasional deep dive, because it keeps surprises small and decisions timely.
Your next three steps
Stop aging charges before they start.
- Find the aging thresholds in each marketplace's schedule.
- Add threshold dates for your oldest stock to your calendar.
- Decide on promote, remove or hold for each product at risk.
Frequently asked questions
When do aged inventory charges start?
It depends on the marketplace and current rules. Check the fee schedule.
Is it better to remove stock than pay charges?
Sometimes. Compare the total costs and likely sales.
This guide is general information. Amazon's fees, policies and program rules change and vary by marketplace, so confirm current details in Seller Central and, for tax or legal questions, with a qualified adviser.