Amazon Long-Term Storage Fees: The Complete Guide for Sellers

If you’re an Amazon seller using Fulfillment by Amazon (FBA), you probably already know that storage fees are part of doing business. But there’s a specific type of fee that catches many sellers off guard — Amazon Long-Term Storage Fees (LTSF).

These charges can quickly eat into your profits if you’re not paying attention, especially if your inventory isn’t moving as fast as you expected.

In this guide, we’ll break down:

• What Amazon Long-Term Storage Fees are
• How they’re calculated
• When they’re charged
• How to check your LTSF in Seller Central
• Strategies to avoid Long-Term Storage Fees
• Best practices for managing your inventory costs effectively
• Impact of fees and seller performance

By the end, you’ll know exactly how to stay ahead of LTSF and keep your margins healthy.

Introduction to Amazon Storage Fees

Amazon storage fees are a fundamental part of selling on the platform, especially for those using Fulfillment by Amazon (FBA). When you store products in Amazon’s fulfillment centers, you’re charged for the space your inventory occupies, making it essential to understand how these storage costs work. There are two main types of storage fees: monthly inventory storage fees and long-term storage fees.

Monthly inventory storage fees are charged based on the average daily volume (in cubic feet) your inventory occupies during a given month. However, if your products remain in storage for an extended period, you may also incur long term storage fees, which are significantly higher. These term storage fees are designed to encourage sellers to manage their inventory levels efficiently and avoid letting products sit unsold for too long.

Effective inventory management is crucial for minimizing storage fees and maintaining a healthy profit margin. By keeping a close eye on your inventory levels and understanding Amazon’s storage policies, you can reduce unnecessary storage costs and ensure your business remains profitable over the long term.

When calculating your total FBA costs, remember that Amazon FBA storage fees are a significant part of your overall expenses as a seller.

Understanding Amazon FBA Storage Limits

Amazon FBA storage limits are restrictions on the total amount of inventory you can store in Amazon’s fulfillment centers at any given time. These limits are in place to ensure that Amazon’s warehouses operate efficiently and aren’t overwhelmed with excess stock. If you exceed your allotted storage space, you may face penalties such as account restrictions or even suspension, which can disrupt your business.

To avoid incurring unnecessary fees and maintain a good standing with Amazon, it’s vital to monitor your inventory levels regularly. The Inventory Performance Index (IPI) is a key metric Amazon uses to evaluate how well you manage your inventory. A high IPI score indicates effective inventory management and can help you qualify for higher storage limits, while a low score may result in reduced storage capacity and increased risk of excess stock.

Staying within your Amazon FBA storage limits not only helps you avoid penalties but also encourages you to optimize your inventory management practices, reduce excess stock, and keep your business running smoothly.

Overview of the Aged Inventory Surcharge

The aged inventory surcharge, commonly referred to as long-term storage fees, is a charge applied to inventory that has been stored in Amazon’s fulfillment centers for more than a year. This surcharge is Amazon’s way of encouraging sellers to remove slow moving inventory and make room for products with higher sales velocity. If you don’t actively manage your inventory age, these storage fees can quickly erode your profit margin.

To help sellers avoid the aged inventory surcharge, Amazon provides tools like the Inventory Age Report. This report allows you to track the age of your inventory stored in fulfillment centers and identify slow moving items before they become subject to long term storage fees. By regularly reviewing your inventory age and taking proactive steps—such as removing, discounting, or bundling aged inventory—you can minimize the risk of incurring these additional storage costs and maintain a healthier profit margin over the long term.

8 Things to Know About Long-Term Storage Fees

Let's dive into the specifics of what third-party sellers need to know regarding Amazon's Long-Term Storage Fees.

1. What Are Amazon Long-Term Storage Fees?

Amazon Long-Term Storage Fees are extra charges applied to inventory that’s been sitting in Amazon’s fulfillment centers for an extended period — specifically, more than 365 days.

The fee is in addition to monthly storage fees, which all sellers pay based on the amount of space their inventory takes up. LTSF exists for a simple reason: Amazon wants to encourage sellers to keep their inventory moving. Storage space is valuable, and stagnant inventory prevents Amazon from using that space for fast-selling products.

Key points:

• LTSF applies only to FBA inventory.
• They are charged once per month for items aged over 365 days.
• These fees can be significant — especially for slow-moving stock, bulky, or seasonal products.

2. How Are Amazon Long-Term Storage Fees Calculated?

Amazon calculates LTSF based on whichever is greater:

$6.90 per cubic foot of storage space occupied by aged inventory, or

$0.15 per unit of aged inventory.

This “whichever is greater” rule means that in some cases, you might be charged per unit, while in others, the cubic-foot rate will be higher.

Example: Let’s say you have 100 units of a small product that has been in FBA for over 365 days.

• If each unit takes up 0.05 cubic feet, the total volume is 5 cubic feet.
• At $6.90 per cubic foot, the volume-based charge would be: 5 cubic feet × $6.90 = $34.50
• The per-unit charge would be: 100 units × $0.15 = $15

In this case, Amazon charges $34.50 because it’s greater than $15.

Tip: For oversized or bulky items, the cubic-foot charge often exceeds the per-unit charge.

3. When Are Long-Term Storage Fees Charged?

Historically, Amazon charged LTSF only twice a year (February 15 and August 15). However, since September 2018, the policy changed — LTSF are now assessed monthly.

Here’s the timeline:

• On the 15th of every month, Amazon reviews your inventory in its fulfillment centers.
• Items that have been there for more than 365 days are flagged for LTSF.
• The charge is applied shortly after the inventory cleanup date.

Important: Inventory age is measured from the day the product arrived at the fulfillment center, not the day you created the listing or sold your first unit.

4. How to Check Your Long-Term Storage Fees in Seller Central

To stay on top of potential charges, you can use Amazon’s built-in inventory reports and tools.

Step-by-step:

• Log in to Seller Central
• Go to Inventory → Inventory Planning
• Click Inventory Age

Here, you’ll see breakdowns such as:

• 0–90 days
• 91–180 days
• 181–270 days
• 271–365 days
• 365+ days (the danger zone for LTSF)

To see potential fees, use the Inventory Age or Inventory Health reports:

• Reports → Fulfillment → Inventory Health
• Look for the estimated long-term storage fee column.

Amazon will even display “recommended removal” quantities for aged inventory to avoid fees.

Pro tip: Make checking your Inventory Age report part of your monthly routine. Treat it like checking your bank account — the earlier you catch a problem, the easier (and cheaper) it is to fix.

5. How to Avoid Amazon Long-Term Storage Fees

Avoiding LTSF is all about proactive inventory management. Here are proven strategies:

Improve Demand Forecasting

Use sales history, seasonal trends, and keyword data to predict demand accurately, and plan inventory restocking schedules to ensure timely turnover and avoid long-term storage fees. Avoid sending more units to FBA than you expect to sell within 6–9 months.

Send Inventory in Smaller Batches

Instead of shipping 12 months’ worth of stock at once, consider splitting shipments and monitoring in stock levels to avoid overstocking. This reduces the risk of excess aged inventory.

Additionally, tracking your storage utilization ratio can help you optimize storage space and minimize long-term storage fees.

Create Promotions & Discounts

If an item is nearing the 365-day mark, run a discount or Amazon Lightning Deal. Develop a pricing strategy that includes discounted listings, offering discounts, and price reductions to move it faster. Consider leveraging Amazon Outlet or similar tools to sell aging inventory before it incurs long-term storage fees.

Using competitive pricing tools and targeted promotions can help boost sales, especially for aging inventory.

Remove or Liquidate Old Inventory

Amazon offers two options for effective inventory management, including identifying and removing non selling inventory:

• Create a removal order: Have Amazon return the items to you, or set up automated removals for inventory at risk of incurring long-term storage fees.
• Liquidate through Amazon: Amazon finds buyers for your excess inventory at a discounted price, and you recover a portion of the value.

Proactively managing inventory, including removing non selling inventory and utilizing automated removals, helps avoid unnecessary storage costs and keeps your warehouse operations efficient.

Improve Listing Quality

Sometimes items don’t sell because the listing isn’t compelling enough. Optimize your listings to improve:

• Titles
• Bullet points
• Images
• Keywords
• A+ Content

Bundle Slow-Moving Products

Bundling products is a smart way to manage inventory effectively and reduce the risk of long-term storage fees. Combine slow-moving stock with faster-selling complementary products to encourage sales.

6. Tips for Managing LTSF Costs Effectively

Reducing LTSF risk isn’t just about reacting — it’s about building a long-term inventory management system. Understanding FBA storage fees, long term fees, and FBA fulfillment fees is essential for comprehensive cost management, as these costs directly impact your bottom line.

While some sellers use external fulfillment centers to manage overflow inventory, remember that Amazon's warehouses are the primary locations where your inventory is stored and where most storage fees are incurred.

As always, stay up to date with Amazon's storage policies to ensure compliance and avoid unexpected costs.

Use Amazon’s Restock Recommendations

Amazon provides restock suggestions in Seller Central. While not perfect, they can give a starting point for deciding how much stock to send. For more sophisticated recommendations, try third-party inventory intelligence tools.

Keep Inventory Age Under 270 Days

Aim to sell through products well before the 365-day mark. A safe target is under 270 days. This gives you a 3-month buffer to move stock.

Set Automatic Removal Orders

In Seller Central, you can set automated removal orders for aged inventory. This ensures products are pulled before they incur fees.

Track Inventory Age Monthly

Schedule a monthly review of your Inventory Age report. Even 15 minutes a month can save hundreds or thousands of dollars in fees.

Leverage External Fulfillment Centers

If you have high stock but want to avoid LTSF, store some of it in a third-party warehouse and drip-feed to Amazon as needed.

Use Multi-Channel Fulfillment

If you sell on Shopify, eBay, or other platforms, use Amazon’s fulfillment to move slow inventory across channels.

7. A Real-World Example

Let’s say you’re selling a home décor item. You sent 500 units to FBA in January 2024. By August 2025, 150 units are still in stock from the original shipment.

• Inventory Age: 150 units aged over 365 days
• Dimensions: 1 cubic foot each
• Fee calculation:
• Volume-based: 150 cubic feet × $6.90 = $1,035
• Per-unit: 150 × $0.15 = $22.50
• Amazon charges: $1,035 (because it’s greater)

This seller just lost over $1,000 due to poor sell-through and excess stock. If they had monitored inventory levels and sales performance, and run a promotion or removed inventory earlier, they could have avoided this hit.

8. Amazon FBA Fees and Seller Performance

Amazon FBA fees—including storage fees, fulfillment fees, and long term storage fees—play a significant role in determining your overall seller performance and profitability. Effective inventory management is essential for minimizing storage costs and ensuring your business remains competitive. By understanding the different types of fees, such as monthly inventory storage fees and long term storage fees, you can make smarter decisions about inventory levels and restocking.

The Inventory Performance Index (IPI) is a critical metric that reflects how well you manage your inventory. A strong IPI score can lead to increased storage limits and lower risk of incurring unnecessary fees. Regularly monitoring your sales velocity, inventory levels, and storage fees allows you to optimize your Amazon business for a healthy profit margin. By staying proactive and using the right tools to track and manage your inventory, you can significantly enhance your seller performance and long term profitability.

Quick Reference: LTSF Facts Table

Fee Type: Long-Term Storage Fee (LTSF)

Trigger: Inventory aged 365+ days in FBA

Charged: 15th of each month

Rate: $6.90 per cubic foot OR $0.15 per unit (whichever is greater)

How to Check: Inventory Age / Inventory Health reports in Seller Central

Avoidance Methods: Remove inventory, discounts, better forecasting, improve listings

Risk Items: Bulky, seasonal, or low-demand SKUs

Final Thoughts

Amazon Long-Term Storage Fees are a silent profit killer for unprepared sellers. The key to avoiding them is awareness and action:

• Track your inventory age every month
• Plan shipments carefully to avoid excess stock
• Act early if items are nearing the 365-day threshold

With smart planning, LTSF can be completely avoided, freeing up cash flow and keeping your FBA operation profitable.