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.
You can view the units of your inventory which will be eligible for LTSF on the next assessment date using Seller Central reports:
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.
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.
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.
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.
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:
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.
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.
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.
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
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.
LTSF will not be charged on unsellable inventory units.
Yes, the items will continue to be available for sale to customers.
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.
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.
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.