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2024 Updates: Amazon FBA Monthly Inventory Storage Fees and Aged Inventory Surcharges

Written by
Vanessa Hung
Published on
January 25, 2024

Attention, Amazon FBA sellers! Brace for impact with a monthly inventory fee overhaul as the e-commerce giant rolls out pivotal updates to its fee structure in 2024. These changes will redefine the cost landscape for Amazon Fulfillment by Amazon (FBA) storage and aged inventory surcharges.

In this article, we’ll dissect the crucial modifications that Amazon FBA monthly inventory storage and aged inventory surcharge policies will undergo. Time to equip yourself with knowledge that will help you navigate these changes and calibrate your inventory management for more success in the upcoming year. Let’s discuss.

Amazon FBA Monthly Inventory Storage Fee Adjustments

Changes for Standard-Size Products

Starting April 1, 2024, Amazon sellers will see a reduction in off-peak monthly inventory storage fees for standard-size products. Specifically, from January through September, fees will decrease by $0.09 per cubic foot.

It's important to note that this adjustment will first appear in the May 2024 charges for inventory stored in April 2024. There is no change to the fees for large, bulky, or extra-large products during the off-peak period or any fees during the peak period (October-December).

Fee Structure Breakdown Pre and Post April 1, 2024

Large Bulky / Extra-large Products

For large bulky or extra-large products, the off-peak and peak monthly storage fees remain unchanged. This means that sellers dealing with oversized items won't be affected by the storage fee alterations during these periods.

Storage Utilization Surcharge Changes

Introduction of More Granular Fee Tiers

Another important change is the introduction of more detailed fee tiers for the storage utilization surcharge, which takes effect April 1, 2024. Professional sellers with a storage utilization ratio above 22 weeks will now be subject to this additional fee. Inventory aged between 0 and 30 days will be excluded from the surcharge.

Fee Tier Examples Pre and Post April 1, 2024 Changes

Products Auto-replenished by Amazon Warehousing and Distribution

Starting June 1, 2024, products that are auto-replenished by Amazon Warehousing and Distribution (AWD) become eligible for a storage utilization surcharge waiver, further incentivizing efficient inventory management through AWD.

Aged Inventory Surcharge Adjustments

Increase for Inventory Stored Between 271 to 365 Days

On February 15, 2024, the aged inventory surcharge will see an increase for inventory stored between 271 to 365 days, while surcharges for inventory stored between 181 to 270 days, and inventory stored for 365 days or more, will remain unchanged.

Comparison of Aged Inventory Surcharges Pre and Post February 15, 2024

Key Takeaways for Amazon FBA Sellers

Conclusion

In summary, the forthcoming changes to Amazon FBA’s monthly inventory storage and aged inventory surcharge are more than just a tweak in the numbers—they are a call for sellers to refine their strategies and maximize their inventory efficiency. As 2024 approaches, staying ahead of these changes will be the differentiator between businesses that merely survive versus businesses that thrive on the Amazon platform.

Use this moment to re-evaluate, re-strategize, and revitalize your approach to inventory management. Don't let this opportunity pass you by—act now by reviewing your current inventory practices, forecast future needs, and adjust your business model to align with Amazon's new fee structure. Keep yourself updated and stay well-informed to chart a profitable course through the evolving Amazon landscape. Best of luck to your business!

Frequently Asked Questions

1 - When will the new Amazon FBA storage fee changes take effect?

The changes to monthly inventory storage fees will take effect starting April 1, 2024. The changes to aged inventory surcharges will take effect starting February 15, 2024.

2 - How can I minimize the impact of the storage utilization surcharge?

To minimize surcharges, you can improve sell-through rates, request liquidation or removal orders, and use Amazon Warehousing and Distribution for auto-replenishment.

3 - What happens if my storage utilization ratio is below 22 weeks?

If your storage utilization ratio is at or below 22 weeks, you will not be subject to the storage utilization surcharge and will only be charged the base monthly inventory storage fee rate.

4 - Will the aged inventory surcharge apply to all categories?

No, items listed under the clothing, shoes, bags, jewelry, and watches categories are excluded from certain aged inventory surcharges.

5 - Are new sellers affected by the storage utilization surcharge?

New sellers, defined as those who have shipped to a fulfillment center for less than 52 weeks, will not receive a storage utilization surcharge for the first year. After that period, the surcharge may apply based on their storage utilization ratio.

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