What is Amazon FBA Storage?

In simple terms, Amazon FBA allows you to store your products in their warehouse. When a customer places an order, Amazon handles the packaging and delivery. It’s a great way to save time and effort. However, storing your products in their warehouse isn’t free, and the cost you pay depends on how much space your products take up and the time of year.

How Are Amazon FBA Storage Fees Calculated?

The fee Amazon charges for storage depends on two things:

• The size of your products (calculated in cubic feet).
• The season—fees are higher during busy times like October to December when demand for storage goes up.

For standard size items:

• January to September: ₹53 per cubic foot.
• October to December: ₹170 per cubic foot.

For oversized items:

• January to September: ₹34 per cubic foot.
• October to December: ₹85 per cubic foot.

As you can see, the charges can increase significantly during the festive season, so planning your stock wisely during that period can help keep costs under control.

Different Types of FBA Storage Fees

Let’s take a quick look at the different fees Amazon charges for storage:

• Monthly Storage Fees: These are regular charges you pay for storing products every month, and they vary depending on the time of year and the size of your items.
• Long-Term Storage Fees: If any of your products stay in Amazon’s warehouse for more than 365 days, you will be charged extra. The long-term storage fee is ₹490 per cubic foot or ₹11 per unit, whichever is more.
• Removal Fees: If you want to avoid long-term storage charges, you can ask Amazon to return the products to you. However, they will charge a fee for this—₹36 for standardized items and ₹51 for oversized items.
• Disposal Fees: If your products aren’t selling and you don’t want them returned, Amazon can dispose of them for you at a slightly lower cost than removal fees.

How to Keep Amazon FBA Storage Costs Down

You don’t want your storage fees to eat into your profits. Here are a few tips to help you reduce costs:

• Manage Your Inventory Smartly: Don’t send more stock than necessary to Amazon’s warehouse. Send only what you expect to sell in the next few months.
• Check Amazon’s Inventory Reports: Amazon provides useful reports like the Inventory Age Report, which shows you how long your products have been stored. You can use this information to offer discounts or promotions before they hit the 365-day mark.
• Remove Unsold Stock: If certain items aren’t selling, consider removing them before long-term storage fees apply. This will save you money in the long run.
• Consider Fulfillment by Merchant (FBM): For slow-moving items, you can choose to store and ship them yourself through FBM instead of using FBA. This helps you avoid monthly storage fees.

Is Amazon FBA Worth the Cost for Indian Sellers?

Even though FBA has storage charges, the benefits often outweigh the costs. Amazon FBA gives sellers access to a larger market, and products stored in FBA are eligible for Prime shipping, which can boost your sales. As long as you manage your inventory well and avoid unnecessary long-term storage fees, FBA can help you grow your business.

Frequently Asked Questions (FAQs)

1. How are Amazon FBA storage fees charged? Storage fees are charged monthly. The bill for a given month is usually reflected in your account between the 7th and 15th of the following month.
2. What are long-term storage fees? Long-term storage fees apply to any products stored in Amazon’s warehouses for more than 365 days. These fees are charged monthly.
3. Can I remove my products to avoid long-term storage fees? Yes, you can request Amazon to send the items back to you through a removal order. This helps you avoid the long-term storage fees.
4. Why do storage fees increase in certain months? Storage fees increase in the festive season (October to December) as the warehouse space demand increases.
5. How can I view the storage fees? You can view the storage fees on your Amazon Seller Central account using the Inventory Age and Inventory Performance Index reports.
6. Do all products have the same storage fee? No, storage fees depend on the size of the product. Standardized and oversized items have different rates.
7. What should I do if my products aren’t selling? You can offer discounts or promotions to increase sales. If the products still aren’t moving, consider removing them before long-term fees apply.
8. Are storage fees lower during the offseason? Yes, storage fees are lower from January to September. Keeping this in mind while planning your stock can help you save money during the festive season.
9. Is it worth using FBA despite the fees? Many sellers find the benefits like increased sales and less hassle outweigh the costs, but it depends on your business.