Amazon's storage fee is a recurring charge for the space your inventory occupies in its fulfilment centres under FBA. The long-term storage fee is an extra charge on units that stay beyond an ageing threshold. Rates, thresholds and measurement rules are set in Amazon's current FBA rate card, so confirm them in Seller Central before budgeting or disputing any charge.
What the monthly Amazon storage fee covers
Amazon storage fees are charged when your inventory sits in Amazon fulfilment centres under Fulfilment by Amazon (FBA). In general, the charge depends on the space your units occupy and how long they stay. Bulky, slow-selling products therefore cost more to hold than compact, fast-moving ones. The exact basis, slabs and rates are published in Amazon's FBA fee schedule, which is revised from time to time.
Before you model costs, confirm these points in Seller Central:
- Measurement basis: whether charges use volume, weight or size tier for your category.
- Counting method: daily average, month-end snapshot or another method.
- Peak-period changes: whether rates differ at certain times of the year.
- Tax on fees: how GST appears on the fee invoice. Confirm treatment with your tax adviser.
What the long-term storage fee is and when it applies
A long-term storage fee, sometimes described as an ageing or aged-inventory charge, is an additional charge on units that remain in the fulfilment centre beyond an ageing threshold. It exists to push sellers to clear stock that is not selling. Treat it as a separate line from the regular storage fee, because it is calculated differently and can hit you in a month when sales are weak.
The threshold, the way age is counted and the charge itself come from Amazon's current rate card. Do not rely on numbers quoted in old blogs or forum posts. Check these items in the rate card and your reports:
- From which date a unit's age is counted (usually receiving or check-in).
- On which date the ageing snapshot is taken.
- Whether the charge is per unit, per volume, or whichever is higher.
- Any exemptions or special treatment for certain categories or programmes.
Where storage fee mismatches usually come from
Most disputed storage charges trace back to a handful of causes. Check these first when a number looks wrong:
- Wrong dimensions: if the catalogue size or weight is higher than the real product, every unit is charged for more space than it occupies.
- Inbound discrepancies: units received late, short or not yet available can still start an ageing clock or attract charges.
- Unfulfillable or stranded stock: inventory that cannot be sold continues to occupy space.
- Pending removals: units under a removal or disposal order may still show in the charge snapshot.
- Lost or damaged units: if Amazon later reimburses a unit, check that storage was not charged on it for the period it was missing.
- Duplicate or overlapping lines: the same SKU appearing in two invoices or periods.
How to audit storage and long-term fees step by step
- Download the fee and storage reports and the invoices for the month from Seller Central.
- Export the inventory age and inventory ledger reports at SKU level for the same period.
- Recompute the expected fee: average space occupied by each SKU multiplied by the applicable rate from the current rate card.
- Recompute the long-term charge only for units that actually crossed the ageing threshold on the snapshot date.
- Compare your figures with the billed amounts and list variances by SKU.
- Raise a case for each material variance with evidence: catalogue dimensions, physical measurements, ledger entries and dates.
- Track each case until the credit appears in a settlement, and note the settlement it landed in.
Doing this monthly keeps disputes within any time limit Amazon applies. Check your seller agreement and support documentation for the current window.
How to reduce storage and ageing charges
Auditing recovers overcharges, but the larger saving usually comes from inventory decisions. Compare these options per SKU:
| Option | Makes sense when | Check before acting |
|---|---|---|
| Send smaller, more frequent replenishments | Demand is steady but uncertain | Inbound fees and lead times |
| Run a promotion or price cut | Stock is nearing the ageing threshold | Net margin after fees and returns |
| Remove or dispose of units | Sell-through is unlikely | Removal or disposal fee against projected long-term charges |
| Correct catalogue dimensions | Billed space looks higher than actual | Physical measurement of a sample |
Building a monthly review habit
Storage fees rarely get attention because each line is small and spread across many SKUs. A fixed monthly review catches them: a one-page view of storage fee per SKU, units close to the ageing threshold, open cases and credits received.
If your team lacks time for this, MarketplaceMetrics by Fundle reconciles marketplace sales and settlements, checks fees against agreed terms and tracks recovery cases. Myntra Excel reports are reviewed today, and other marketplaces, including Amazon, are in scope discussion. Pricing is a tailored quote.
Worked example
Illustrative example only. The rate and thresholds below are assumed for this exercise and are not Amazon's actual rates.
- One SKU occupies an average of 40 cubic feet in the month. Assumed storage rate: ₹30 per cubic foot per month. Expected storage fee: 40 × ₹30 = ₹1,200.
- The invoice shows ₹1,500 for this SKU. Variance: ₹300.
- On checking, the catalogue lists the carton size as larger than the real pack. Corrected volume is 32 cubic feet, so the expected fee is 32 × ₹30 = ₹960 and the overcharge is ₹540.
- Separately, 60 units cross the assumed ageing threshold. Assumed long-term charge: ₹15 per unit = ₹900. Assumed removal fee: ₹10 per unit = ₹600.
In this made-up case, removing the aged units before the snapshot costs less than the charge, but only if the removal fee and timing in the real rate card match. Run the same comparison with current figures before deciding.
Questions and answers
What is the difference between Amazon storage fee and long-term storage fee?
The storage fee is a regular charge for the space your inventory occupies in Amazon fulfilment centres. The long-term storage fee is an additional charge on units that stay beyond an ageing threshold. Both are defined in Amazon's current FBA rate card, which you should check for exact amounts.
How can I avoid the long-term storage fee on Amazon India?
Track inventory age by SKU, replenish in smaller batches, discount slow stock before it reaches the threshold, and compare removal fees with expected ageing charges. Confirm the current threshold and snapshot date in Seller Central, since these terms can change.
Can I dispute an Amazon storage fee I think is wrong?
Yes. Recompute the fee from your inventory reports and the rate card, then raise a support case with evidence such as correct dimensions, ledger entries and dates. Check Amazon's current rules for the time window within which you can raise such claims.
Do I pay GST on Amazon storage and long-term storage fees?
Amazon fee invoices generally carry GST, but the rate and your input tax credit treatment depend on current law and your registration. Read the tax details on the invoice and confirm the latest position with your tax adviser instead of relying on a fixed figure.