Many Amazon sellers have been startled by unexpected Long-Term Storage Fee (LTSF) charges from FBA. This isn't accidental. Managing FBA inventory requires ongoing attention, as prolonged storage not only ties up capital but also generates substantial fees. This article examines FBA's storage duration policies and LTSF calculation methods to help sellers minimize unnecessary expenses.
FBA Inventory Storage Limits and Automatic Removal
Amazon has established strict storage duration policies for FBA inventory. Beginning April 4, 2025, in major marketplaces including the U.S. and Europe, any FBA inventory remaining in fulfillment centers for more than 270 days (including both sellable and unsellable items) will automatically trigger removal processes, typically resulting in disposal or destruction. Without seller intervention, stagnant inventory will be forcibly cleared.
Sellers do retain the option to keep overaged inventory by disabling the automatic removal feature in Seller Central under Settings → Fulfillment by Amazon → Automatic Removal settings. However, disabling removal doesn't equate to indefinite storage—overdue inventory still accrues both long-term storage fees and monthly storage charges.
Calculating Long-Term Storage Fees
Amazon conducts inventory audits on the 15th of each month to assess storage duration. For inventory exceeding time limits, LTSF is calculated as follows, in addition to standard monthly storage fees:
- 271–365 days in storage: $0.15 per unit per month
- Over 365 days in storage: $15 per cubic foot monthly (approximately $220 per cubic meter)
The fee structure varies by storage duration. Items stored 271-365 days incur per-unit charges, while inventory exceeding 365 days switches to volumetric pricing. Bulkier items consequently face disproportionately higher LTSF burdens.
The Risk of Multiple Fee Accumulation
Beyond LTSF, sellers must monitor potential overflow charges. Inventory surpassing Amazon's allocated storage capacity triggers additional "overage fees," meaning stagnant stock could simultaneously incur monthly storage fees, long-term storage fees, and overage charges—a costly triple threat to profitability.
Strategic Inventory Management Recommendations
Proactive inventory control can prevent excessive storage costs:
- Optimize turnover: Regularly analyze sales metrics to adjust inventory strategies and prevent dead stock accumulation.
- Implement clearance sales: Accelerate sales of aging inventory through promotions or discounts.
- Consider removal: For inventory unlikely to sell with prohibitive storage costs, evaluate removal or disposal options.
- Leverage management tools: Utilize Amazon's inventory age tracking features to monitor stock and take timely action.
Effective FBA inventory management demands continuous oversight. Understanding storage regulations and fee structures enables sellers to develop cost-efficient inventory strategies that protect profit margins.