Inventory Management Tips to Avoid Long-Term Storage Fees

Long-term storage fees kick in on inventory sitting in Amazon's fulfillment centers past a set age threshold, on top of regular storage fees — and because they accrue quietly, sellers often notice them only after checking a monthly statement.

Check the inventory age report regularly

This report flags exactly which units are approaching the long-term threshold, giving enough lead time to act — run a promotion, discount the SKU, or initiate a removal before the fee applies.

Use the inventory performance index as an early warning

A declining IPI score often reflects slow-moving or excess stock before it shows up as a specific fee — treating IPI as a leading indicator, not just a compliance number, helps catch the problem earlier.

Forecast before ordering, not after

Overordering based on optimistic demand forecasts is the root cause of most long-term storage situations. A conservative reorder quantity that undershoots slightly is almost always cheaper than excess stock aging into long-term fees.

When to remove instead of wait

If a SKU clearly isn't moving and a discount hasn't helped, a removal order (returning inventory to you or disposing of it) is often cheaper than continuing to pay storage — especially once long-term fees are close to applying.

Sources and further reading

Marketplace rules change; these are the official pages to check against before you act on anything here.

• Fulfilment by Amazon (FBA)
• Amazon selling fees and plans
• Listing Health & FBA Reimbursements (our service page)