Amazon FBA Storage Fee Calculation: Understanding the Costs

Mar 21, 2024 | Amazon FBA | 12 comments

Amazon FBA Storage Fee Calculation: Understanding the Costs




Amazon’s Fulfillment by Amazon (FBA) storage fees are a critical component of any seller’s overall costs. Understanding how much Amazon charges for storage and how to calculate these fees properly is essential for maximizing profits and making informed business decisions.

Amazon charges for storage based on the volume of space your products take up in their fulfillment centers. The fees are categorized into two types: monthly inventory storage fees and long-term storage fees.

Monthly inventory storage fees are charged on a monthly basis and are calculated based on the volume of space your products occupy in cubic feet. Amazon charges $0.75 per cubic foot for standard-size items from January to September, and $2.40 per cubic foot for October to December. For oversized items, the rates are higher, with $0.48 per cubic foot from January to September, and $1.20 per cubic foot for October to December.

To calculate your monthly inventory storage fees, multiply the total volume of your products in cubic feet by the applicable rate based on the time of year.

Long-term storage fees are charged for items that have been stored in Amazon’s fulfillment centers for more than 365 days. These fees are calculated based on the volume of space your products occupy and are charged at a rate of $6.90 per cubic foot or $0.15 per unit, whichever is greater.

To calculate long-term storage fees, multiply the volume of your products in cubic feet by the rate of $6.90 per cubic foot. If the per-unit rate is higher, multiply the number of units by $0.15 to calculate the total fee.

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It’s important to manage your inventory efficiently to minimize storage fees. Consider factors such as product demand, seasonality, and sales velocity to avoid overstocking and accumulating excessive storage fees.

Utilizing Amazon’s FBA calculator can help you estimate storage fees and analyze the impact of different pricing strategies on your profitability. By understanding how much Amazon charges for storage and calculating these fees accurately, you can make informed decisions to optimize your inventory and maximize your profits on the platform.


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12 Comments

  1. @keypoint1293

    Every month you are being charge $1.15 storage fee. You can't calculate profit by just deducting a single month storage fee.

    Reply
  2. @iumair.gujjarr

    Please stop sharing your sales,earning balance and and Money screenshots unless its part of learning.. We are tired of this shit. If you earning, its good. Keep it, don't sell your content by such scrap

    Reply
  3. @adambaruch6787

    I dont think its there anymore do you need to wait a month for that to show up or something because im not seeing it

    Reply
  4. @amadtalat4706

    Woow amazing such a waste of time watching your video nothing useful out in your video and you were spitting words through out the video such a silly content dont make any more video plz.

    Reply
  5. @giribandi8406

    Hi,
    I am being charged fee on canada and mexico, where i don't sell, kindly help on this immediately. how to stop and exit from those stores

    Reply
  6. @ruffasportscards

    How much would DVD’s and blu ray movies, maybe books, video games, board games stuff like that cost for the housing fee

    Reply
  7. @monkeymann5973

    As storage fees are paid per m^2, in your example are your flower holders packaged ready to be sent to the customer and the m^2 is calculated based on this storage method? Or are they stored in a more effective way palletised and need to be handled before being sent to the customer?

    Reply
  8. @borntodi3

    After Calculating so you paid amazon 428$ for just fees for one month and earned 463? what is your profit percentage ?

    Reply
  9. @allenpasson8042

    I knew about sku central [by clicking the sku], what you showed here helped me dial in on sku economics area…super helpful…thanks!

    Reply

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