Amazon sellers are always chasing for more profit. But for many, rising costs are silently eating into their margins. One of the biggest culprits? Storage fees. It is one of the common factors that cuts your margin.
If you’re using Fulfillment by Amazon (FBA), you’re paying for storage whether your products sell or not. Amazon doesn’t care if your inventory moves fast or slow. If it’s sitting in their warehouse, you’re paying rent.
Still, you can cut your storage costs significantly. And that’s where Manage Amazon comes in. We’ve helped sellers reduce their FBA expenses, optimize product storage, and finally breathe easier at the end of the month.
What Are Amazon FBA Storage Fees?
FBA storage fees are what Amazon charges to hold your products in its warehouses. These are calculated based on:
- Volume of your inventory (measured in cubic feet)
- Time of year (Q4 is more expensive)
- Product size tier (standard or oversized)
There are two types of storage fees:
- Monthly inventory storage fees (charged for all stored products)
- Aged inventory surcharge (formerly long-term storage fees)
The more space your products take up, and the longer they sit, the more you pay. Now let’s tackle how to fix that.
15 Practical Tips to Reduce Your Amazon FBA Storage Costs
1. Track Inventory Aging Weekly
Every product in your FBA inventory has a timer. Once it hits 180 days, Amazon starts charging you extra for aged inventory. These charges may seem small at first, but they stack up fast. That’s why weekly tracking is critical.
Use Amazon’s reports to monitor aging inventory. Set a reminder to review SKU age every Friday. This will help you make faster decisions before extra charges kick in.
2. Use Amazon’s Inventory Dashboard
Amazon gives you the tools , use them. The Inventory Performance Index (IPI) shows how efficiently you’re managing storage. A low IPI score leads to storage limits and higher fees.
Keep your IPI above 400 by reducing excess inventory, increasing sell-through rates, and keeping listings active. Your dashboard also gives tailored recommendations. Act on them before they become expensive problems.
3. Remove Slow-Moving Stock
If something hasn’t sold in 90 to 120 days, it’s dragging down your IPI and racking up fees. Amazon will charge you aged inventory fees after 180 days and hit you harder past 270.
The fix? Create a removal order and send the units back to your own storage or sell them elsewhere. You can also use Amazon’s FBA Liquidations program to get back some of your investment.
4. Adjust Reorder Quantity and Frequency
Sending 500 units because you got a bulk deal feels good until you pay to store 400 of them for six months. Instead, rely on historical sales data to calculate how many units you actually need.
Smaller, more frequent shipments reduce risk, lower storage costs, and help you avoid the long-term storage trap.
5. Bundle Low-Selling Items
A product may not sell alone but could do better in a bundle. For example, if you have 50 slow-moving phone cases and 100 fast-selling chargers, combine them into a bundle with a better value proposition.
This clears out excess inventory and keeps your IPI healthy. Amazon even allows you to create virtual bundles without physically packaging them together.
6. Use a Third-Party Warehouse
Don’t treat FBA as a storage unit. Send a portion of your inventory to a third-party logistics (3PL) provider. Then, use that 3PL to replenish FBA stock as needed. This strategy saves money and gives you more flexibility. It’s especially useful for seasonal items or oversized goods.
7. Launch Discounts or Coupons
If inventory’s just sitting, spark urgency with a short-term discount or coupon. Use Amazon’s “Coupons” tab to create offers that show up in search results and on listings.
Even a 5% discount can improve your click-through rate and push sales. The quicker you sell, the less you pay in storage fees.
8. Lower Prices Strategically
Sometimes taking a small loss is smarter than paying monthly storage for a slow-moving item. Lower the price temporarily to improve sell-through.
Check your competitors, calculate your minimum break-even price, and adjust. Just don’t race to the bottom , make it strategic, not desperate.
If done right, even a modest discount can help you increase product sales and turn idle stock into fresh cash flow.
9. Repackage Oversized Products
Amazon charges higher fees for oversized items. If your packaging is just slightly over the limit, you’re losing money. Review your dimensions, and if possible, make adjustments.
For example, switching from a bulky box to a poly mailer can drop your item into a cheaper tier and save you money every month.
10. Enroll in FBA Liquidations
Dead stock doesn’t just sit there , it costs you. Instead of letting fees pile up, use Amazon’s FBA Liquidations program to recover a percentage of your costs.
Amazon will sell the product to a wholesaler and pay you a small portion. It’s not ideal, but it’s better than paying monthly fees on unsellable stock.
11. Manage FBA Shipping Plans More Tightly
Too many sellers overestimate demand and dump all their units at once into Amazon. A smarter method is sending in smaller quantities based on current sales data.
This keeps your inventory lean, improves IPI, and avoids overstocking. Use tools that forecast demand so your shipping plan stays aligned with actual sales trends.
12. Improve Listing SEO and Sales Velocity
The faster your products sell, the less you pay for storage. Make sure your listings are optimized, strong titles, quality images, and clear bullet points.
Use keyword tools to update your content and run small ad campaigns to increase visibility. More sales mean less dead weight in storage.
13. Use “Manage Excess Inventory” Tool
Amazon gives you a built-in tool to identify excess stock. Use it weekly. It tells you which products are costing you and suggests price reductions, removal, or liquidation.
The sooner you act, the more you save. Don’t ignore these alerts.
14. Check Seasonal Trends
FBA storage is expensive in Q4. And storing off-season products only adds to the waste. For example, don’t send swimsuits in October.
Keep seasonal stock in your own warehouse or with a 3PL until the season starts. This keeps your FBA footprint lean and costs low.
And if you’re looking to shift to more consistent sellers, exploring the best eCommerce niches can help you stock products that move faster and reduce long-term storage needs.
15. Use Manage Amazon Automation
We built Manage Amazon to take care of exactly these problems. Our tools automate inventory aging alerts, pricing suggestions, and restock planning.
We even monitor FBA fees and recommend ways to save. You stay focused on sales while we handle the backend. It’s not about cutting corners , it’s about cutting waste. That’s what good automation does.
FBA Storage Fees vs. FBA Fulfillment Fees vs. Referral Fees
Many sellers confuse these charges. Here’s how they’re different:
| Fee Type | What It Covers | How It’s Charged |
| FBA Storage Fees | Space in Amazon’s warehouse | Monthly, based on cubic feet |
| FBA Fulfillment Fees | Picking, packing, shipping, customer service | Per unit, based on size and weight |
| Referral Fees | Amazon’s cut of each sale | Percentage of sale price (8%–15%) |
These are core to understanding how much does Amazon FBA cost. Each fee stacks, so managing one helps your total cost drop.
Do FBA Storage Fees Vary by Product Size or Type?
Yes. Here’s a simple breakdown with examples:
| Product Type | Size Tier | Monthly Fee (Jan–Sep) | Monthly Fee (Oct–Dec) |
| T-shirt | Standard | $0.87 per cubic ft | $2.40 per cubic ft |
| Blender | Oversized | $0.56 per cubic ft | $1.40 per cubic ft |
| Sofa Cushion | Extra Large | $0.78 per cubic ft | $1.20 per cubic ft |
Note: Fees differ slightly for apparel, footwear, and Amazon FBA India fees. Always review your product tier under FBA pricing.
How Are Long-Term Storage Fees Calculated?
Amazon now uses the aged inventory surcharge. Here’s how it works:
- Products stored for 181–270 days: $0.50 per unit or $0.75 per cubic foot (whichever is greater)
- 271–365 days: $1.00 per unit or $1.50 per cubic foot
- Over 365 days: $6.90 per unit or $0.15 per unit per day
These charges are on top of regular storage fees. That’s why reducing long-term storage is one of the smartest ways to reduce your Amazon FBA costs.
Manage Amazon: Cut Storage Costs with Smart Automation
Many sellers try to do this manually, spreadsheets, guesswork, overstocking. It adds up fast.
Manage Amazon automates the hardest parts:
- Tracks your aging inventory daily
- Suggests removal orders or discounts
- Syncs seasonal demand to your shipping plans
- Keeps your IPI high and storage fees low
We don’t just show reports. We take action. And no, Amazon automation is not a scam. It’s smart selling.
If you’re struggling with inventory pile-up, paying too much in Amazon FBA warehousing fees, or unsure of how much of a cut does Amazon take, let us handle it.
From FBA shipping costs to preventing account suspensions, we make sure you don’t fall into the same traps that most sellers do. We even help optimize product listings to boost product sales and identify good selling products on Amazon.
Frequently Asked Questions:
What’s the best way to lower Amazon FBA fees?
One of the best ways to reduce FBA costs is by managing inventory more efficiently. Keeping slow-moving items low, watching seasonal storage spikes, and choosing lightweight, small-dimension products can make a real difference. Many sellers also save by using the FBA Revenue Calculator before sending stock. Programs like Low-Price FBA and smarter packaging are game changers too.
Why are Amazon FBA fees considered high?
Amazon’s FBA fees rose after the company faced major financial setbacks in 2022, with losses around $2.7 billion. To recover, it adjusted its fulfillment pricing in 2023. These fee hikes help cover rising costs related to shipping, labor, and warehouse operations.
What do Amazon FBA storage fees actually cost?
Monthly storage fees depend on how much space products take up and the time of year. Items stored between January and September cost less per cubic foot than those held during peak months like October to December. The larger or older the inventory, the more it can add up over time.
How are FBA storage charges calculated?
Amazon calculates storage based on the daily average volume a product occupies, measured in cubic feet. Fees apply monthly and reflect the item’s fully packaged size, not just the product itself. Seasonality and inventory age also play a big role in the final numbers.
How can Amazon storage fees be avoided?
Avoiding extra storage charges starts with smart inventory planning. Stock levels should match real sales data, and slow-moving items need to be flagged early. Using tools like the IPI dashboard helps sellers monitor what’s working and what’s just taking up shelf space.
Final Thoughts
Amazon FBA makes selling easier, but it’s far from cheap. If you ignore your storage costs, they’ll eat your profit alive.
The good news? Every tip in this blog is proven, practical, and ready for action. Whether it’s adjusting your shipping strategy, bundling slower products, or using Manage Amazon’s automation tools.
