Key takeaways
- Focus on the few products that cost most.
- Compare storage saved with extra shipping cost.
- Clear slow movers early.
- Review storage monthly.
Find where the money goes
Start with the storage fee report by product. Rank products by storage cost per unit sold. A few products usually account for most of the cost, so focus effort there.
Right-size your inventory
Reduce overstock by adjusting order quantities and reorder points. Aim for coverage that matches lead time and variability, not a comfortable excess. Review the products with the highest days of supply first.
Ship smaller quantities more often
Frequent, smaller shipments reduce average stored volume. Compare the higher inbound shipping cost against the storage saving to find the best frequency.
- Storage cost saved
- Extra inbound shipping cost
- Extra handling effort
- Risk of stockout
Redesign packaging
Smaller, flatter packaging reduces volume and may also reduce fulfillment fees. Check that protection remains adequate and that the customer experience is not harmed. Test with a small batch.
Clear slow-moving stock
Identify products with persistently high days of supply and decide what to do: promote, bundle, remove or liquidate. Acting early prevents aging charges and frees space.
Improve conversion of slow products
Weak listings leave stock unsold. Improve images, titles and bullets for slow-moving products and consider modest advertising to test demand. Better conversion reduces storage per unit sold.
Avoid unfulfillable and stranded stock
Unsellable units still cost storage. Fix stranded listings and remove unfulfillable inventory promptly. Check the inventory dashboard regularly.
Monitor monthly
Make a monthly routine: review the storage report, days of supply, aging and unfulfillable stock, and record actions and results. Small, consistent actions add up.
A worked example
A seller changes a product's carton insert and bag to reduce packaged volume. They also shift from quarterly to monthly replenishment for that item. Combined, these changes cut average storage volume noticeably and reduce the cost per unit sold.
Common mistakes
Typical mistakes include cutting stock so far that stockouts occur, packaging changes that increase damage and ignoring the combined cost of shipping and storage. Always compare totals.
A quick-win checklist
Start with actions that take little effort. Remove unfulfillable stock, fix stranded listings, cancel or reduce orders for products with excess supply and run small promotions on aging items. Then move to bigger projects such as packaging redesign and changes to replenishment frequency.
Estimate the saving for each action, rank them and tackle them in order. Report the monthly storage cost trend to the team so improvement is visible and the habits stick.
Your next three steps
Start with the quick wins.
- Remove unfulfillable stock and fix stranded listings.
- Reduce orders for products with excess supply.
- Test smaller packaging on your most expensive-to-store item.
Key terms
A few terms used above, in plain language.
- Stranded inventory: stock that cannot be sold due to a listing issue.
- Slow mover: a product with high days of supply.
- Replenishment frequency: how often you send new stock.
Worth remembering
Storage costs shrink through many small, regular decisions rather than one big project. Keep the monthly routine going and the savings will compound.
Frequently asked questions
What is the fastest way to cut storage costs?
Remove or sell excess and slow-moving stock, then right-size reorder quantities.
Will smaller packaging hurt my product?
Only if protection suffers. Test before changing at scale.
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.