On the 15th of each month, Fulfillment by Amazon (FBA) conducts an inventory cleanup. On these dates, inventory that has been in KSA fulfillment centers for more than 365 days incurs a long-term storage fee (LTSF) of 30 SAR per cubic foot.
All sellable inventory units that have been in Amazon FCs for over twelve months are eligible for monthly LTSF charges. Following are the LTSF rates*:
Long-term Storage Fees
|Inventory cleanup date||Items in fulfillment centers more than 365 days|
|15th of every month||30 SAR per cubic foot|
*Exclusive of VAT
Multiply length x width x height in centimeters to get the volume. Divide the volume by 28,316.84 cubic centimeters (30.48cm x 30.48cm x 30.48cm = 28,316.84), which is the equivalent of 1 cubic foot. Example: A Unit measuring 47cm x 12cm x 10cm divided by 28,316.84 = 0.199 cu. ft.
Prior to the assessment date, you can attempt to sell or remove the units that will be eligible for LTSF to avoid being charged LTSF. You can view units of your inventory which will be eligible for LTSF and the estimated LTSF that you might be charged for those units using the Inventory Age View and the Inventory Health Report.
The examples below illustrate the long-term storage fees.
Inventory cleanup date: 15th of each month
|Toaster: 25.5 x 18.5 x 17 cm||Storage duration||Applicable LTSF|
|1 unit||More than 365 days||8.50 SAR|
|2 units||More than 365 days||16.99 SAR|
|10 units||More than 365 days||84.96 SAR|
|Cabinet: 65 x 18 x 18 cm||Storage duration||Applicable LTSF|
|1 unit||More than 365 days||22.31 SAR|
|2 units||More than 365 days||44.62 SAR|
|10 units||More than 365 days||223.12 SAR|
Use the Inventory Age and Inventory Health reports to identify which ASINs in your inventory are subject to long-term storage fees. For each ASIN, you can see your inventory by the amount of time it has been in a fulfillment center:
This information can help you estimate the number of items that will have been in a fulfillment center for more than 365 days by the next inventory cleanup date.
The Recommended Removals report can also help you identify items subject to long-term storage fees. This report automatically calculates, on an ASIN-by-ASIN basis, the number of items you would have to remove to avoid long-term storage fees — assuming no further sales.
To find the Inventory Age page, go to the Inventory tab in your seller account, then Inventory Planning. For the Inventory Health and Recommended Removal reports, go to the Reports tab, then Fulfillment.
The long-term storage fee is in addition to the monthly inventory storage fee. Assessment is based on the date an item is received in the fulfillment center.
Only items that have been in a fulfillment center for more than 365 days will be assessed a long-term storage fee.
FBA calculates inventory age on a first-in-first-out (FIFO) basis across the entire fulfillment network. Items sold or removed are deducted from the inventory that has been in the fulfillment network the longest, regardless of which unit was actually shipped or removed.
Active management of older inventory can help you avoid long-term storage fees. To remove older inventory before the next inventory cleanup date, you can:
Submit a removal order: If you submit a removal order for inventory before the cleanup date, that inventory won’t incur a long-term storage fee, even if it isn’t physically removed before the cleanup date. The deadline for submitting a removal order is 11:59 p.m. (UTC+0) on the 14th of the month. Inventory in sellable condition will be available for sale until the removal is complete. You will not be charged a removal order fee until the inventory has been returned to you or disposed of.
Set up automated removals: Inventory designated for removal based on your automated long-term storage fee removal settings as of 15th of each month will not be subject to long-term storage fees. To set up automated removals, go to the Settings menu in Seller Central and click Fulfillment by Amazon.
You can enable removal of all inventory subject to long-term storage fees or select a price range to determine which items are removed. You can also keep inventory priced above a certain amount in the fulfillment center and pay the long-term storage fees for those items only, and have the rest returned to you or disposed of. Standard removal fees apply. For more information, see Remove inventory automatically.
Any items that you don’t remove and that are in sellable condition will continue to be available for sale and will be eligible for Amazon Prime and free shipping.