Amazon Fulfillment by Amazon FBA Fee Changes for 2024

Changes to Storage Utilization and Long Term Storage Fees 2024

This section will discuss the Monthly Inventory Storage fees and Long Term Storage Fee changes for 2024.

Storage Utilization Surcharge

Starting on April 1, 2024, Amazon will be making changes to Storage utilization surcharges. Amazon charges a storage utilization surcharge when sellers overstock inventory compared to recent demand and sell-through in Fulfillment Centers. This ensures that there is storage capacity for available inventory that is in high demand by customers, and it discourages sellers from overstocking inventory and wasting storage space. The surcharge is calculated by variables including Product Size Tier, Current Month, Product Volume, Average Daily Units Stored, Storage Utilization Ratio, and Dangerous Good Classification.  Sellers can view their current storage utilization ratio in the FBA dashboard page of Seller Central.

New more granular storage utilization ratios will be added this year to align surcharges more closely to stocking behavior. There will be a total of 6 storage utilization ratios (up from 2 last year) ranging from 22 weeks to 52+ weeks. These new ratios will result in Sellers receiving a surcharge at lower utilization ratios, 26 weeks in 2023 compared to 22 weeks in 2024. Sellers who have irresponsibly overstocked quantities of their products with 44+ weeks plus utilization will be penalized with higher surcharges of $1.58 per cubic square foot for the ratio of 44 – 52 weeks and $1.88 per cubic foot 52+ weeks. Sellers can reduce these surcharges by closely monitoring inventory sell-through and maintaining stock levels below 22 weeks of utilization.

There are different Storage Utilization Surcharge fee structures used between off-peak periods (January-September) and peak periods (October-December). Depending on the seasonality of your business and customer demand, it is important to consider these costs based on the time of year you would like the inventory. Starting June 1, 2024, products that are auto-replenished by Amazon Warehousing and Distribution are eligible for a storage utilization surcharge waiver.

Aged Inventory Long Term Storage Fee 2024

Long Term Storage Fee or Aged Inventory Surcharge fees will generally stay the same in 2024. Amazon charges inventory long term storage or aged inventory surcharges to discourage sellers from stocking high levels of inventory that does not have high sell-though. This helps keep storage capacity available for high-demand, high-sell products, which improves customer experience.  Items aged between 181-270 days old will see the same Aged inventory surcharges. The only ages ranges that will see an increased surcharge in inventory 271 days or older. See below for surcharge changes to age ranges above 271 days. Sellers can reduce Long Term Storage Fees by pulling the Aged Inventory Surcharge report to get a better understand of current in-stock inventory age and by not stocking over 5 months of demand at a given time.