FBA long term storage fees

Why do you charge for long-term storage?

Inventory that is overstocked or stored indefinitely in Fulfilment Centres (FC) limits ability to provide space for fast-selling products required by customers. The Long-Term Storage Fee (LTSF) helps ensure that we continue to provide high levels of service to all the sellers and provide right products to customers. The cost of long term storage space is not calculated into monthly storage fee. That is why we have introduced LTSF. Inventory units that sell before they've been in FCs for six months will not be charged LTSF. Likewise, any units for which you submit a removal request prior to the inventory assessment date will not be charged LTSF as well, subject to eventual removal of the inventory.

Which of my products will be charged LTSF and what will be the charges?

You can view the units of your inventory which will be eligible for LTSF on the next assessment date using Seller Central reports:

• Inventory Age View gives you information regarding the age of inventory units, the number of units that will be eligible for the LTSF on the next assessment date, and the estimated LTSF amount for those units (assuming no further sales). You can also see opportunities for you to increase traffic or sales conversion to help sell through your aged inventory. Learn More.
• Inventory Health Report gives you information regarding the age of inventory units, the number of units that will be eligible for the LTSF on the next assessment date, and the estimated LTSF amount for those units (assuming no further sales). You can also see opportunities for you to increase traffic or sales conversion to help sell through your aged inventory.Learn More.
• Recommended Removal Report automatically calculates on an ASIN-by-ASIN basis the quantity you would need to remove (assuming no further sales) to avoid the LTSF. You can then click the "Begin Removal Process" button to pre-populate a removal order and request to have those units returned or disposed of. Learn More.

Using these reports, you will be able to identify inventory that is stored for long period in the FC and will be eligible for LTSF, assuming no further sales. As we release more such inventory management tools, we will continue to send updates through your Seller Central account.

Won't LTSF eliminate the selection FBA sellers are able to offer to the customers?

No. You are allowed to keep one unit of each ASIN that is included in the LTSF program in the FC without incurring the fee. This is based on the condition that none of the units of that ASIN has been in fulfilment centres for less than six months.

What if I have some units of an ASIN that have been in Amazon fulfilment centres for more than six months and some that have been in Amazon fulfilment centres for less than six months?

Only the units that have been in fulfilment centres for more than six months will be charged LTSF. The ASIN units that have been in fulfilment centres for less than six months won't be charged. Please note that inventory age will be calculated on First In First Out (FIFO) basis.

From what date is inventory age calculated?

Inventory age is calculated from the date a unit is received in the fulfilment centre on a FIFO basis across fulfilment network. This means that for the purpose of determining how long inventory has been in fulfilment centres, we will consider for a sale or removal of a unit by deducting it from the inventory that has been in fulfilment network the longest, regardless of which physical unit was actually shipped or removed.

Will I be double-charged LTSF for a unit that has been stored in a fulfilment centre for more than 12 months? In other words, will it be charged higher of INR 15 per unit or INR 425 per cubic foot and higher of INR 30 per unit or INR 850 per cubic foot at the same time?

No, a specific unit of aged inventory cannot be subject to both the charges at the same time. In other words, it will fall into one of the following three categories:

• Inventory in an Amazon fulfilment centre for less than six months as of the monthly assessment date (not charged)
• Inventory (all categories) in an Amazon fulfilment centre for 6 to 12 months as of the monthly assessment date (charged higher of INR 15 per unit or INR 425 per cubic foot)
• Inventory in an Amazon fulfilment centre for more than 12 months as of the monthly assessment date (charged higher of INR 30 per unit or INR 850 per cubic foot)

If I have inventory of two different CDs that has been in a fulfilment centre for more than a year, will I be charged higher of INR 30 per unit or INR 850 per cubic foot for each?

No. You are allowed to keep one unit of each ASIN on hand that will not be charged the LTSF, if all your units of the ASIN are older than six months. If you have only one unit each of two different CDs in fulfilment centres for more than a year, and those are the only ASINs you have in fulfilment centres, then you would not be charged LTSF for either of them. Any additional units of those ASINs that are included in the program would be charged LTSF.

How can I avoid LTSF?

You can attempt or sell or remove the units in your FBA inventory which will be eligible for LTSF before the LTSF Assessment Date to avoid LTSF.

• Manage your aged inventory - To view information regarding the age of your units in FBA and manage your inventory, go to Inventory Health Report or Inventory Age View. This page shows you the number of units that will be subject to the LTSF on the next charge date (assuming no further sales) and identifies opportunities for you to increase traffic or sales conversion to help sell through your LTSF inventory. You can also create removals from this view. Learn More.
• Create removal for your LTSF eligible units - View the Recommended Removal Report to see the units you would need to remove on an ASIN-by-ASIN basis to avoid the long-term storage fee on the next Assessment Date (assuming no further sales). Click the "Begin Removal Process" button to pre-populate a removal order to have those units returned or disposed of. Learn More.

Does the removal have to be completed by the assessment date to avoid LTSF or just requested?

You only need to request a removal to avoid LTSF. Inventory units in sellable condition that you have requested for removal will not be charged LTSF. These units will continue to be available for sale until the removal is completed. You will not be charged for the removal till inventory has been removed.

Is LTSF being charged in place of the monthly Inventory Storage Fee or in addition to it?

This fee is in addition to the monthly Inventory Storage Fee. The monthly Inventory Storage Fee will continue to be charged on all units in inventory each month. LTSF will be charged on units that have been in fulfilment centres for more than six months

If an item sells shortly after LTSF is charged, will a portion of the fee be refunded?

LTSF is charged on the units in the inventory which are older than six months and are eligible for LTSF as on the assessment date i.e., the last day of every month.

What about inventory that is unsellable?

LTSF will not be charged on unsellable inventory units.

Will items eligible for LTSF still be available for sale to customers?

Yes, the items will continue to be available for sale to customers.

When will I see the LTSF charge applied to my account?

LTSF charge for a particular month is applied on your account in the first week of the next month.

For example LTSF applied to seller account in the first week of March, 2018 is due to the LTSF accrued for the month of February, 2018.

Will I see LTSF charge in my invoice?

LTSF charge for a particular month is applied on your account in the first week of the next month. LTSF charge shown in your monthly invoice corresponds to the LTSF accrued for previous month.

For example LTSF for the month of February, 2018 charged to your account in March, 2018 will appear in your monthly tax invoice for March, 2018.

How do I view details of my units which have been charged LTSF?

You can view the itemised details of your most recent Long-Term Storage Fee (LTSF) charges in Long-Term Storage Charge report. The report includes product details, quantity, per unit volume, and the total amount for each Stock keeping unit (SKU) to which the fee was applied.

Note that the Long-Term Storage Charge report displays the LTSF charge details of the most recent Long Term Storage Charge cycle only. You may consider downloading a copy of this report and store it for reference.