Amazon India's storage fee is charged for the space your FBA inventory occupies, usually based on volume and time, with extra charges possible for aged stock. A removal fee is charged per unit when you ask Amazon to return or dispose of inventory. Exact rates change, so confirm them in your current Amazon fee schedule and seller agreement.
What the two fees actually are
If you use Fulfilment by Amazon (FBA), your stock sits in Amazon fulfilment centres. Two charges often surprise finance teams because they are not tied to a customer order.
- Storage fee: a recurring charge for the space your inventory occupies in the fulfilment centre.
- Removal fee: a per-unit charge when you instruct Amazon to return your inventory to you or dispose of it.
Both are deducted from your payable balance or shown as fee lines in your payment reports. Neither will appear on a customer invoice, so they are easy to miss in a sales-based margin check.
Fee names, tiers and effective dates change from time to time. Treat the current Amazon India FBA fee schedule in Seller Central, and your accepted seller terms, as the only source of truth for rates. Do not rely on a blog, including this one, for numbers.
How storage fees are built up
Storage charges generally depend on a few drivers. Check each against your current fee schedule.
| Driver | Why it matters | Where to check |
|---|---|---|
| Inventory volume | Bulky products occupy more space, so cost more to hold | Product dimensions in your catalogue and the FBA fee schedule |
| Time in storage | Slow-moving stock stays longer and accrues more charges | Inventory age or inventory health reports |
| Aged inventory | Amazon may apply additional charges to stock held beyond a set period, if your current terms include this | Fee schedule and inventory age report |
| Season | Rates may differ in peak periods, if the schedule says so | Fee schedule effective dates |
A common source of error is dimensions. If the catalogue shows larger measurements than your product really has, you may be charged more than intended. Re-measure a sample of your top SKUs and compare them with what Amazon holds.
How removal fees work
You create a removal order when you want sellable, unsellable or aged stock sent back to you or disposed of. Fees are normally charged per unit, and the rate can depend on the product's size and weight tier and on whether the units are returned or disposed of. Confirm the current structure in the fee schedule.
Points that cause disputes:
- Units listed on the removal order versus units actually shipped or disposed of.
- Fees charged on units that were later cancelled or never processed.
- Stock that was returned damaged or never arrived at your warehouse.
- Removal orders created automatically or by a colleague without finance knowing.
Removal is often cheaper than holding aged stock, but only if you compare the fee against storage still to be charged and the realistic sale value of the units.
Where these charges appear in your settlement
In Seller Central, open the Payments section and download the date-range or transaction reports for your settlement period. Fee types appear as separate transaction lines, though labels vary by report and can change. Removal order details typically sit in the FBA or inventory reports, not the payment report.
To trace a charge, you usually need three documents:
- The payment or settlement report showing the fee line and amount.
- The removal order detail or storage-related report showing units, SKUs and dates.
- The fee schedule or rate card in force on those dates.
Flipkart also has storage-related and other service charges under its own seller terms. The same approach works there: take the rate from your agreement or rate card, then match it with the settlement report and the underlying inventory movement.
GST treatment of marketplace fees and any tax deducted at source follows current rules. Confirm these with your tax adviser and do not assume a rate.
A practical monthly check
- Export the month's payment report and filter all storage and removal lines.
- Export the matching inventory age and removal order reports.
- Compare billed units and dates against actual removal shipments.
- Recompute a sample using the current fee schedule and your catalogue dimensions.
- List differences with SKU, order ID, amount and evidence.
- Raise cases through Seller Central support and record the case ID and date.
- Track whether the credit actually arrives in a later settlement.
Step 7 is where most teams lose money. A promised reimbursement that never lands is just as bad as an error you never found.
Doing this at scale
With a handful of SKUs, a spreadsheet works. With hundreds of SKUs and several settlement cycles, matching fee lines to inventory movements by hand becomes slow. MarketplaceMetrics by Fundle reconciles marketplace sales and settlements, checks commissions and fees against agreed terms, and tracks returns and recovery cases. Myntra Excel reports are reviewed today, and Amazon and Flipkart coverage is a scope discussion, so ask about your specific report formats before assuming support.
Whichever route you choose, keep your own evidence file: fee schedule version, report exports and support case history.
Worked example
Illustrative example only. The ₹ figures below are made up to show the method and are not Amazon rates.
- You create a removal order for 120 aged units of one SKU.
- Assume an illustrative removal fee of ₹12 per unit in your fee schedule.
- Expected fee: 120 × ₹12 = ₹1,440.
- The removal order detail shows only 100 units shipped; 20 were cancelled.
- The payment report shows a fee of ₹1,440, so you were charged on all 120 units.
- Fee for units actually processed: 100 × ₹12 = ₹1,200.
- Possible overcharge: ₹240, to be raised with the order ID, unit counts and both reports as evidence.
Also check whether the 20 cancelled units are still in your sellable inventory. A fee error and a stock error can come from the same removal order.
Questions and answers
Where can I find the current Amazon India storage and removal fee rates?
Open the FBA fee or rate card section in Seller Central and read your accepted seller agreement. Rates, tiers and effective dates change, so download the version in force for the period you are checking and keep a copy.
Why was I charged a removal fee for units I never received?
This can happen when units are cancelled, lost in transit or returned damaged after the fee was posted. Compare the removal order detail with your warehouse receipts, then raise a case with order ID, unit counts and report evidence.
Can I reduce Amazon storage fees?
Usually by holding less slow-moving stock, correcting wrong product dimensions and removing or liquidating aged units before extra charges build up. Weigh removal fees against further storage and expected sale value, using your current fee schedule.
Are storage and removal fees the same on Flipkart?
No. Each marketplace sets its own fee names, structure and rates. Check your Flipkart seller agreement, rate card and settlement reports, then apply the same method of matching fee lines to inventory movements.