Amazon charges long-term storage fees (LTSF) for inventory that remains in their fulfillment centers for over 365 days (one year). These fees are assessed twice a year, typically in February and August, and are calculated based on the volume of inventory stored.
Current Long-Term Storage Fees:
Standard-size items: $6.25 per cubic foot
Oversize items: $12.50 per cubic foot
These fees can quickly become costly for used booksellers, especially for slow-moving inventory or books with lower profit margins.
Used books often have longer selling cycles due to varying demand and competition. When books remain in storage for extended periods, long-term storage fees can significantly reduce profitability.
Example Scenario:
Sale price of a book: $15
Referral fee: $3
FBA storage and shipping fees: $4
After 1 year: $6 long-term storage fee
Total Fees: $13
Net Profit: $2
In this example, the long-term storage fee consumes over 30% of potential profits, highlighting the importance of proactive inventory management.
1. Monitor Inventory Turnover
Regularly review your inventory reports to track sales velocity.
Identify books that haven’t sold in 6–9 months and take action.
Remove or reprice books that are unlikely to sell soon.
2. Use Inventory Removal and Returns
Utilize Amazon’s removal order service to return unsold books for a small fee.
Consider disposing of books with minimal resale value.
Regularly removing stagnant inventory prevents accumulating fees.
3. Optimize Your Listings
Enhance titles, descriptions, and keywords for better search visibility.
Add high-quality images and accurate book condition details.
Improved listings can help attract buyers and reduce storage time.
4. Reprice Inventory
Lower prices for slow-moving inventory to encourage sales.
Run promotions or offer discounts for books nearing the 365-day mark.
Use repricing tools to stay competitive and maintain profitability.
5. Diversify Your Sales Channels
Expand beyond Amazon by listing on platforms like eBay, AbeBooks, and Etsy.
Reaching diverse audiences helps sell books faster, reducing storage needs.
Diversifying sales also reduces reliance on Amazon's FBA warehouses.
6. Maintain a Lean Inventory
Avoid overstocking by focusing on fast-selling titles.
Evaluate demand trends to avoid storing low-demand books.
A lean inventory minimizes storage fees and maximizes profitability.
Missing or Incorrect Inventory Reports
Check Amazon Seller Central’s Reports tab for inventory updates.
Ensure your settings display accurate metrics, such as sales velocity and age.
Books Not Selling Despite Optimizations
Reassess keywords and ensure they align with current search trends.
Double-check pricing to remain competitive.
Difficulty Removing Inventory
Verify that your account settings allow for removal orders.
Contact Amazon Seller Support if the system restricts removals.
“How do I know if I’m being charged long-term storage fees?”
Check your FBA Inventory Age Report in Seller Central, which displays how long each book has been stored.
“What if I can’t afford removal fees?”
Consider selling books at a steep discount to clear inventory and avoid LTSF.
“Can I dispute long-term storage fees?”
Amazon does not waive these fees, so proactive management is critical.
Q: How are long-term storage fees calculated?
A: Fees are based on the volume of inventory stored (in cubic feet) and the type of item (standard or oversized).
Q: How can I avoid long-term storage fees altogether?
A: Focus on fast inventory turnover, lean inventory management, and selling on multiple platforms.
Q: When are long-term storage fees charged?
A: Fees are assessed twice a year, in February and August.
Q: What happens to inventory after long-term storage fees are applied?
A: Inventory remains in Amazon’s warehouse until sold, removed, or disposed of. Additional fees will continue to accrue for unsold items.
By following the tips and strategies outlined in this article, you can better manage your used book inventory on Amazon FBA and minimize the impact of long-term storage fees, ensuring a more profitable business.
