FBA Long Term Storage Fees

Why do you charge for long-term storage?

Inventory that is overstocked or stored indefinitely in fulfilment centres limits ability to provide space for fast-selling products required by customers. The Long Term Storage Fee helps to 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 Long Term Storage Fees. Inventory units that sell before they have been in fulfilment centres for five months will not be charged Long Term Storage Fees. Likewise, any units for which you submit a removal request before the inventory assessment date will not be charged Long Term Storage Fees as well, subject to eventual removal of the inventory.

Which of my products will be charged Long Term Storage Fees and what will be the charges?

You can view the units of your inventory which will be eligible for Long Term Storage Fees 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 Long Term Storage Fees on the next assessment date, and the estimated Long Term Storage Fees amount for those units (assuming no further sales). You can also see opportunities for you to increase traffic or sales conversion to help to 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 Long Term Storage Fees on the next assessment date, and the estimated Long Term Storage Fee amount for those units (assuming no further sales). You can also see opportunities for you to increase traffic or sales conversion to help to sell through your aged inventory. Learn More.
• Recommended Removal Report automatically calculates on an ASIN-by-ASIN basis the quantity that you would need to remove (assuming no further sales) to avoid the Long Term Storage Fees. You can then click the "Begin Removal Process" 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 fulfilment centre and will be eligible for Long Term Storage Fees, assuming no further sales. As we release more such inventory management tools, we will continue to send updates through your Seller Central account.

Will LTSF not eliminate the selection that 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 Long Term Storage Fee programme in the fulfilment centre 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 five months.

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

Only the units that have been in fulfilment centres for more than five months will be charged Long Term Storage Fees. The ASIN units that have been in fulfilment centres for less than five months will not be charged. Please note that inventory age will be calculated on First-In, First-Out (FIFO) basis.

From which date is inventory age calculated?

Inventory age is calculated from the date on which 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 Long Term Storage Fees 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 five months as of the monthly assessment date (not charged)
• Inventory (all categories) in an Amazon fulfilment centre for 5 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, then 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 Long Term Storage Fees, if all your units of the ASIN are older than five 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 that you have in fulfilment centres, then you would not be charged Long Term Storage Fees for either of them. Any additional units of those ASINs that are included in the programme would be charged Long Term Storage Fees.

How can I avoid Long Term Storage Fees?

You can attempt or sell or remove the units in your FBA inventory which will be eligible for Long Term Storage Fees before the Long Term Storage Fee Assessment Date to avoid Long Term Storage Fees.

• Manage your aged inventory - To view information regarding the age of your units in FBA and manage your inventory, please go to Inventory Health Report or Inventory Age View. This page shows you the number of units that will be subject to the Long Term Storage Fees on the next charge date (assuming no further sales) and identifies opportunities for you to increase traffic or sales conversion to help to sell through your Long Term Storage Fee inventory. You can also create removals from this view. Learn More.
• Create removal for your Long Term Storage Fee eligible units - View the Recommended Removal Report to see the units that 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). Please click the "Begin Removal Process" 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 Long Term Storage Fees or just requested?

You only need to request a removal to avoid Long Term Storage Fees. Inventory units in sellable condition that you have requested for removal will not be charged Long Term Storage Fees. 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 Long Term Storage Fee 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. Long Term Storage Fees will be charged on units that have been in fulfilment centres for more than five months.

If an item sells shortly after Long Term Storage Fee is charged, then will a portion of the fee be refunded?

No. Long Term Storage Fee is charged on the units in the inventory which are older than five months and are eligible for Long Term Storage Fees as on the assessment date that is the last day of every month.

What about inventory that is unsellable?

Long Term Storage Fees will not be charged on unsellable inventory units.

Will items eligible for Long Term Storage Fees still be available for sale to customers?

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

When will I see the Long Term Storage Fee charge applied to my account?

Long Term Storage Fee charge for a particular month is applied on your account in the first week of the next month.

For example, Long Term Storage Fees applied to seller account in the first week of March, 2018 is due to the Long Term Storage Fee accrued for the month of February, 2018.

Will I see Long Term Storage Fee charge in my invoice?

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

For example, Long Term Storage Fees 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 Long Term Storage Fees?

You can view the itemised details of your most recent Long Term Storage Fee 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.

Please note that the Long Term Storage Charge report displays the Long Term Storage Fee 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.