This article applies to selling in: Singapore

FBA long-term storage fees

Note: Long-term storage fees are separate from monthly storage fees and can be avoided with proper inventory planning. FBA will assess long-term storage fees on a monthly basis.
Note: Long-term storage fees has been effective since January 2021, and will be updated on February 15, 2022.

Inventory items that have been in our fulfilment centres for more than 365 days will be charged a long-term storage fee (with GST) of S$192.60 per cubic metre or a minimum fee (with GST) of S$0.11 per unit, starting 15 February 2022. Until then, the current long-term storage fee rates of S$89.88 (with GST) per cubic metre or a minimum fee of S$0.11 per unit (with GST) will apply. The greater of the applicable long-term storage fee (based on the packaged volume of one unit) or per-unit minimum long-term storage fee of S$0.11 will be charged.

Effective Date Inventory cleanup date Amount for items in a fulfilment centre for more than 365 days
January 2021 to February 14, 2022 15th of every month S$89.88 (with GST) per cubic meter or S$0.11 per unit (with GST) (whichever is greater)
February 15, 2022 onwards 15th of every month S$192.60 (with GST) per cubic metre or S$0.11 per unit (with GST) (whichever is greater)

Long-term storage fee notifications

Use the Inventory Age report to identify the inventory that is subject to a long-term storage fee at the next inventory cleanup. Affected inventory appears in the Recommended Removals report six weeks prior to the cleanup date.

In advance of each inventory cleanup, we will notify you of any items in your FBA inventory that have been in our fulfilment centres for 365 days or longer.

Note: FBA accounts for inventory on a First In First Out (FIFO) basis when calculating the long-term storage fee. In practice, however, items shipped to fill customer orders are optimized for cost and speed of delivery, not on a First In First Out (FIFO) basis.

Sample of long-term storage fee (LTSF) calculation

Below example is of the long-term storage fee calculation that is effective since January 2021 until February 14, 2022.

Item Dimensions Units Storage duration Applicable long-term storage fee (charged at S$89.88 (with GST) per cubic metre) Applicable minimum long-term storage fee (with GST) Effective long-term storage fee (with GST)
Toy 28.0 cm x 20.2 cm x 5.0 cm 1 More than 365 days S$0.25 S$0.11 S$0.25
Toy 28.0 cm x 20.2 cm x 5.0 cm 2 More than 365 days S$0.51 S$0.21 S$0.51
Book 21 cm x 15 cm x 1.5 cm 1 More than 365 days S$0.04 S$0.11 S$0.11
Book 21 cm x 15 cm x 1.5 cm 2 More than 365 days S$0.08 S$0.21 S$0.21

Below example is of the long-term storage fee calculation that will be effective from February 15, 2022.

Item Dimensions Units Storage duration Applicable long-term storage fee (charged at S$192.60 (with GST) per cubic metre) Applicable minimum long-term storage fee (with GST) Effective long-term storage fee (with GST)
Toy 28.0 cm x 20.2 cm x 5.0 cm 1 More than 365 days S$0.54 S$0.11 S$0.54
Toy 28.0 cm x 20.2 cm x 5.0 cm 2 More than 365 days S$1.09 S$0.21 S$1.09
Book 21 cm x 15 cm x 1.5 cm 1 More than 365 days S$0.09 S$0.11 S$0.11
Book 21 cm x 15 cm x 1.5 cm 2 More than 365 days S$0.18 S$0.21 S$0.21

Frequently asked questions

Why do you charge for long-term storage?

Inventory that is overstocked or stored indefinitely in our fulfilment centres limits our ability to provide space for fast-selling products customers want. Long-term storage fees help us to ensure that we can continue to provide high levels of service to all sellers and provide customers with products they want.

Which of my products will be charged the long-term storage fee, and how much I will be charged?

The Recommended Removals report identifies inventory that is subject to a long-term storage fee. This report automatically calculates the number of items that you need to remove on an ASIN-by-ASIN basis (assuming no further sales) to avoid the long-term storage fee, and pre-populates a removal order request for those items. The report only identifies those items that are subject to long-term storage fees within six weeks prior to each cleanup date.

Does the removal have to be completed before the inventory cleanup date to avoid the long-term storage fee or just submit the removal request?

It is sufficient to submit the removal request before the inventory cleanup date to avoid the long-term storage fee for requested items, but the removal does not need to be complete. Inventory in sellable condition will be available for sale and you will not be charged the long-term storage fee for items you have requested to remove or dispose of, unless you cancel your removal request.

Is the long-term storage fee in lieu 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 be charged each month. In addition to the monthly storage fee, the long-term storage fee is charged monthly for inventory that is stored in our fulfilment centres for more than 365 days.

If an item sells shortly after the long-term storage fee is charged, will a portion of the fee be refunded?

No. The long-term storage fee is charged for storage that has been provided, it is not an upfront cost so it will not be refunded.

From what date is inventory age calculated?

The fee is based on the date an item is checked in at the fulfillment centre.

Will items processed for the long-term storage fee still be available for sale to customers?

Yes. While these items may be moved to a different physical location within a fulfilment centres, they will be available for purchase by customers and eligible for Amazon Prime and free shipping.

If I remove items eligible for long-term storage fees, when can I send another shipment of those items to Amazon?

To maintain inventory health and consistency across sellers, any ASINs that are removed after triggering long-term storage fee criteria should not be re-sent to the inventory for eight weeks following the removal.

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