Key takeaways
- Storage fees depend on space used and period.
- Peak-season rates are often higher.
- Track storage cost per unit sold.
- Use days of supply to guide ordering.
What storage fees pay for
Storage fees cover the space your inventory occupies in fulfillment centers while it waits to be sold. They apply to FBA stock and are billed in addition to fulfillment fees. Amazon publishes the current rates and rules by marketplace, and these change over time, so verify the details in Seller Central before modeling.
Space, not units
Charges are generally based on the volume your inventory occupies, averaged over the month, rather than the number of units. Bulky, low-priced items can therefore be disproportionately expensive to store. Always think in terms of space used per unit sold.
Seasonal rates
Storage rates are often higher in the busiest months of the year, when demand for space is greatest. Stock that sits unsold through that period costs more. Plan inventory so that slow movers are not occupying peak-season space.
Estimate storage per unit
Take the packaged volume of a unit, apply the current rate and estimate how many months a unit typically sits before selling. Divide to get a per-unit storage cost, and include it in your margin model. Products with long days of supply carry higher storage costs per unit sold.
- Packaged volume per unit
- Current rate for the period
- Average months in storage
- Seasonal adjustment
Track storage by product
Download the storage fee report and sort by product to see which items cost the most. Compare storage cost with product margin. Items where storage consumes a large share of profit need action, such as price changes, promotions or removal.
Link storage to days of supply
Days of supply shows how long current stock will last at recent sales rates. High values signal excess and higher storage costs. Low values signal a stockout risk. Aim for a range that balances the two, set by lead time and demand variability.
Look at all related charges
Storage fees are one of several inventory-related charges. Aged inventory surcharges, low-inventory fees and removal fees can add to the total. Read the other articles in this series to see how they interact.
A worked example
A seller of a bulky item notices that storage consumes a large share of its margin. By reducing order quantities and shipping smaller, more frequent shipments, they cut average days of supply and storage cost per unit, while accepting slightly higher inbound shipping costs. The net effect is positive.
Common mistakes
Typical mistakes include ignoring storage in margin models, overbuying before peak season and failing to review aged stock. Another is not comparing storage costs by product, which hides the worst offenders.
Monthly storage checklist
Each month, download the storage fee report, rank products by cost per unit sold, review days of supply, flag slow movers and decide on actions. Record decisions and revisit them next month.
Your next three steps
Get control of storage costs this month.
- Download the storage fee report and rank products by cost per unit sold.
- Review days of supply for the top ten costs.
- Decide an action for each slow mover and record it.
Frequently asked questions
Are storage fees the same everywhere?
No. Rates, units and rules differ by marketplace.
How can I lower storage fees?
Reduce excess inventory, ship smaller quantities more often and remove or sell slow movers.
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.