Running a successful Amazon FBA business requires sellers to keep a close eye on costs. Among these, Amazon storage fees are often misunderstood and underestimated. Storage costs can silently eat into profit margins if not managed properly.

In this detailed guide, we’ll break down Amazon monthly storage fees vs. long-term storage fees, explain how they are calculated, share strategies to minimize them, and provide actionable insights every seller must know in 2025.

Why Amazon Storage Fees Matter

Amazon FBA (Fulfillment by Amazon) is convenient because Amazon stores, picks, packs, and ships your products. But warehouse space is not free.

Every cubic foot your inventory occupies comes at a cost, and Amazon adjusts these fees depending on:

• Time of year (seasonal changes in demand and space usage)

• Product size and category

• How long your inventory has been sitting in fulfillment centers (FCs)

For sellers with large catalogs or slow-moving SKUs, these fees can add up quickly. Understanding the fee structure helps you:

• Price your products competitively without losing profits

• Avoid unnecessary penalties for aged inventory

• Optimize inventory planning and cash flow

Types of Amazon FBA Storage Fees

Amazon charges two primary types of storage fees:

1. Monthly Storage Fees (MSF) – charged every month for the space your inventory occupies.

2. Aged/Long-Term Storage Fees (LTSF) – charged on units stored for more than 181 days.

Both have different calculation methods and implications for sellers.

Amazon Monthly Storage Fees (MSF)

What Are Monthly Storage Fees?

Monthly storage fees are the baseline charges Amazon applies to all inventory in FBA warehouses. These fees are based on the volume of your inventory in cubic feet and vary by season and product size tier.

Current Monthly Storage Fee Rates (2025)

👉 Notice how Q4 (October–December) rates triple for standard-size items because warehouse demand spikes during the holiday season.

Example Calculation

Let’s say you have 500 standard-size units that take up 50 cubic feet in total.

• Storage in August (off-peak):
  50 cu ft × $0.87 = $43.50/month

• Storage in November (peak):
  50 cu ft × $2.40 = $120/month

That’s nearly a 3X increase in storage cost just because of the holiday quarter.

Amazon Long-Term (Aged) Storage Fees (LTSF)

What Are Long-Term Storage Fees?

Long-term storage fees are extra charges applied to inventory that stays in Amazon warehouses for more than 181 days (6 months).

This fee is designed to discourage sellers from using Amazon FBA as a long-term storage facility and push them to manage inventory turnover more efficiently.

Current Long-Term Storage Fee Rates (2025)

Amazon charges whichever is higher: the fee per cubic foot or the fee per unit.

Example Calculation

Imagine you have 200 units of a slow-moving supplement that has been in storage for 210 days. Each unit is 0.2 cubic feet, totaling 40 cubic feet.

• Fee per cubic foot:
  40 × $1.50 = $60

• Fee per unit:
  200 × $0.50 = $100

Amazon will charge the higher value → $100.

As the inventory ages further, fees increase steeply, making it very expensive to keep unsold stock in FBA.

Monthly vs. Long-Term Storage Fees: Key Differences

How Amazon Tracks Inventory Age

Amazon uses First-In, First-Out (FIFO) logic. This means the system assumes the first units you sent to FBA are the first ones sold.

Your inventory age is visible in Seller Central → Inventory → Inventory Age Report, where you’ll see breakdowns like:

• 0–90 days

• 91–180 days

• 181–270 days

• 271–365 days

• 365+ days

This report is crucial for identifying which SKUs may trigger LTSF and require urgent action.

The Hidden Impact of Storage Fees

Many sellers only calculate Amazon’s referral fee (usually 15%) and FBA fulfillment fee when setting product prices. But storage fees—especially long-term ones—can drastically shrink profit margins.

Example:
If you’re selling a product with $8 profit per unit but it incurs $1–$2 in aged storage fees, your net profit drops by 25%.

For sellers in competitive categories like supplements, apparel, or seasonal items, poor inventory management can even lead to losses.

How to Reduce Amazon Storage Fees

The good news is, sellers can take proactive steps to minimize these fees.

1. Improve Inventory Forecasting

• Use tools like Helium 10, Jungle Scout, or SoStocked to predict demand.

• Factor in seasonality, past sales, and promotions.

• Avoid overstocking SKUs that historically sell slowly.

2. Monitor Inventory Age Regularly

• Check the Inventory Age Report weekly.

• Set alerts when products approach the 181-day mark.

• Create removal or liquidation orders before fees hit.

3. Run Promotions for Aged Stock

• Use Amazon Coupons, Lightning Deals, or Sponsored Discounts.

• Lower your price temporarily to increase sell-through.

• Bundle slow-moving items with faster-selling SKUs.

4. Remove or Liquidate Inventory

If you can’t sell through, create a removal order (ship inventory back to you) or use Amazon’s FBA Liquidations Program.

• Removal fees are usually cheaper than long-term storage fees.

• Liquidation returns a small portion of your cost, instead of paying ongoing fees.

5. Use 3PL Warehouses for Overflow

Third-party logistics (3PL) companies can store excess stock at lower rates than Amazon.

• Keep only 2–3 months’ worth of inventory in FBA.

• Replenish as needed from 3PL storage.

6. Optimize Packaging

Smaller packaging = fewer cubic feet = lower storage costs.

• Use Amazon’s FBA Prep Services or 3PLs to repackage bulky items.

• Especially critical for oversize items.

Common Mistakes Sellers Make

1. Sending too much inventory before validating demand

   • New sellers often ship hundreds of units upfront without testing sales velocity.

2. Ignoring seasonality

   • Sending summer products in winter or vice versa leads to long-term storage fees.

3. Not accounting for Q4 rate hikes

   • Holding slow-moving inventory in October–December is especially costly.

4. Failing to act before the 181-day mark

   • Waiting until the fee hits instead of liquidating/removing inventory early.

Advanced Strategies for Experienced Sellers

A. Dynamic Replenishment

Use a just-in-time inventory model—sending smaller, frequent shipments instead of bulk inventory.

B. ASIN-Level Profit Analysis

Run profitability analysis per SKU:

• Factor in MSF + LTSF + removal fees.

• Drop SKUs where storage fees outweigh profits.

C. Multi-Channel Fulfillment (MCF) + 3PL

Split inventory between Amazon FBA and your 3PL. Use MCF to fulfill Shopify/Walmart orders while keeping FBA lean.

D. Seasonal Storage Planning

For seasonal sellers (e.g., Christmas products, swimwear, or supplements tied to trends):

• Use 3PL storage in off-season.

• Only send stock to FBA 1–2 months before peak demand.

Tools to Help Manage Storage Fees

1. Amazon Seller Central Reports – Inventory Age, Excess Inventory, and Restock Reports.

2. Helium 10 Inventory Protector – Helps forecast and prevent overstocking.

3. SoStocked – Advanced forecasting software.

4. RestockPro – Inventory planning and shipment management.

5. Sellerboard / ManageByStats – Profit analytics with storage fee tracking.

Case Study: How One Seller Cut Storage Fees by 65%

Background:
A supplement seller had 2,500 units sitting in Amazon FCs, with 40% of stock older than 180 days. Their monthly long-term storage fees were $1,200+.

Actions Taken:

• Ran aggressive Lightning Deals to boost sell-through.

• Created removal orders for 500 slowest-moving units.

• Shifted 1,000 units to a 3PL warehouse.

• Adjusted replenishment strategy to 2-month supply at FBA.

Result:

• Storage fees dropped to $420/month.

• Net profit improved by 15% within 3 months.

Frequently Asked Questions (FAQ)

Q1: Do storage fees apply even if my products don’t sell?
Yes. Storage fees are based on warehouse space, not sales. Unsold items still incur costs.

Q2: Are storage fees refundable?
No. Once charged, storage fees are non-refundable.

Q3: Do all categories have the same storage rates?
No. Some categories (like apparel, footwear, or dangerous goods) may have slightly different fee structures.

Q4: When are long-term storage fees charged?
They are assessed monthly on the 15th, starting after 181 days in storage.

Q5: Should I always remove aged inventory?
Not always. If you anticipate a seasonal surge (e.g., holiday items), it may be worth paying fees instead of removing.

Final Thoughts

Amazon storage fees both monthly and long-term are a critical part of every seller’s cost structure. While monthly fees are predictable and manageable with proper planning, long-term fees can quickly drain profits if inventory sits unsold. The key to success lies in forecasting demand accurately, monitoring inventory age closely, and taking proactive actions such as running promotions, liquidating slow movers, or leveraging 3PL warehouses. By staying on top of these costs, sellers not only protect their margins but also maintain a healthier, more scalable Amazon FBA business.