If you’re an Amazon seller, you’re probably already familiar with the most common costs: referral fees, FBA fulfillment fees, storage fees, and advertising. But hidden among these is one of the sneakiest fees that quietly eats away at your profit margins: Amazon’s Long-Term Storage Fees (LTSFs).
This fee often flies under the radar for sellers—especially those new to FBA—because it doesn’t show up right away and is only charged periodically. But when it hits, it can be costly, especially if you’ve been holding inventory that isn’t moving.
In this blog post, we’ll break down exactly what this fee is, how to identify it in your reports, and most importantly, how to avoid it and protect your profit margins.
What Are Amazon Long-Term Storage Fees?
Amazon’s Long-Term Storage Fees are additional charges applied to inventory that has been sitting in an Amazon Fulfillment Center for 181 days or more. Amazon charges these fees monthly, on the 15th of each month.
Here’s how they work:
- Items stored for 181 to 365 days incur a fee of $3.45 per cubic foot or $0.50 per unit, whichever is greater.
- Items stored for over 365 days are charged $6.90 per cubic foot or $0.50 per unit, whichever is greater.
These fees are in addition to regular monthly storage fees, which can already be high during Q4 (October through December).
Why This Fee Is So Sneaky
There are a few reasons why LTSFs catch sellers off guard:
- They Aren’t Charged Immediately – Unlike other fees, LTSFs take time to build up. By the time you’re charged, it may feel like it came out of nowhere.
- They Accumulate Over Time – If you have slow-moving or seasonal inventory, you may not notice it sitting until it’s too late.
- Reports Are Buried – The data is available, but you have to dig into Amazon’s reports to understand what’s at risk.
- Volume-Based Charges Add Up – Since the fee is based on cubic feet or per unit (whichever is greater), large or bulky items can be especially costly.
Many sellers think they’re doing okay until a surprise deduction from their earnings triggers a deeper investigation—only to realize LTSFs have been quietly chipping away at their profits.
How to Check If You’re Being Charged LTSFs
To find out if you’re being hit with these fees (or if you’re at risk), follow these steps:
Step 1: Go to Amazon Seller Central
Log into your account and navigate to: Reports > Fulfillment > Inventory Age Report
This report shows how long your inventory has been stored at Amazon’s warehouses, broken down by age brackets:
- 0-90 days
- 91-180 days
- 181-270 days
- 271-365 days
- 365+ days
Step 2: Review Aged Inventory
Focus on the items that fall into the 181-365 and 365+ day buckets. These are the SKUs at risk of (or currently incurring) long-term storage fees.
Step 3: Estimate Fees
Use Amazon’s Fee Preview Report or the Inventory Health Report to estimate what you’ll be charged.
Look for the column labeled “Long-Term Storage Fee” or use Amazon’s Revenue Calculator to get a clearer picture.
Strategies to Avoid Long-Term Storage Fees
The good news is that LTSFs are completely avoidable with the right strategy. Here are several actionable steps to keep your inventory moving and your fees under control:
1. Monitor Inventory Age Weekly
Make it a habit to check your Inventory Age Report weekly. Set alerts or use inventory management software that integrates with Seller Central to notify you when items approach the 181-day threshold.
2. Create Removal Orders
If you have products that aren’t selling and are approaching the 181-day mark, you can create a removal order to have Amazon return the inventory to you. This often costs less than paying long-term storage fees.
Alternatively, consider disposing of the inventory through Amazon if the cost of storage and return outweighs the product’s value.
3. Run Clearance Promotions
Before your inventory hits the long-term storage window, run a promotion or coupon to clear it out.
Ideas:
- Limited-time discounts
- Lightning Deals (if eligible)
- Amazon Coupons
- Social media promotions to drive traffic
Even if you have to break even or take a small loss, it’s often better than paying unnecessary storage fees.
4. Send Inventory in Smaller Batches
Instead of sending all your inventory at once, send in smaller, more frequent shipments based on sales velocity. This helps keep inventory fresh and avoids overstocking slow movers.
5. Bundle Slow-Moving SKUs
If you have multiple slow movers, consider creating a bundle to increase perceived value and sell-through rate. This can be a great way to clear aged inventory while offering something unique to customers.
6. Optimize Your Listings
Sometimes inventory doesn’t sell simply because the listing isn’t optimized. Before giving up on a slow-moving item, try:
- Improving product images
- Adding keywords to the title and bullet points
- Updating the description and backend search terms
- Enhancing the reviews and customer Q&A
Better visibility and a higher conversion rate can quickly boost sales and clear out aging stock.
7. Use Amazon’s FBA Inventory Age Tool
Amazon offers a built-in tool to help sellers avoid LTSFs. The FBA Inventory Age Tool gives personalized recommendations based on your SKU-level data and shows which units are at risk.
This tool can be accessed through: Seller Central > Inventory > Inventory Planning > Inventory Age
Bonus Tip: Consider Using a 3PL (Third-Party Logistics Provider)
If you have seasonal products or slow movers, store the majority of your inventory at a 3PL warehouse and only send smaller batches to FBA as needed. This gives you more control over how much inventory is at risk and can significantly reduce storage costs.
Many 3PLs offer competitive rates compared to Amazon’s long-term storage fees and give you more flexibility over inventory movement.
Real-Life Example: How One Seller Saved $2,000 with One Email Alert
A mid-size private label seller had unknowingly accumulated aging inventory over the summer. When they received their July statement, they were shocked by a $2,000 charge in unexpected storage fees.
After digging into the Inventory Age Report, they discovered that three SKUs had crossed the 181-day threshold—and were not moving.
They quickly:
- Created a removal order for excess inventory
- Launched a 25% off promotion
- Optimized the listings with better images and bullet points
Within three weeks, they had cleared out the aged stock and prevented another $1,500+ in upcoming LTSFs.
All it took was setting up an inventory age alert and paying closer attention to slow movers.
Final Thoughts: Stay Lean, Stay Profitable
Amazon’s Long-Term Storage Fees are sneaky, but they’re completely avoidable with the right systems in place. By monitoring your inventory age regularly, sending smaller shipments, optimizing listings, and taking proactive steps to move old stock, you can stay lean and protect your profits.
If you’re serious about building a profitable Amazon business, this is one area you cannot afford to ignore.
đź”” Pro Tip: Add a monthly reminder to review your Inventory Age Report on the 1st of each month. That gives you two full weeks to take action before the 15th LTSF charge hits.
Have you ever been surprised by Amazon’s storage fees? Share your experience in the comments below—and don’t forget to share this post with a fellow seller who needs it!
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