E-Commerce Strategies
May 14, 2025
Amazon's 2025 storage fee updates are here, and sellers need to adapt quickly. Here's what you need to know:
Standard storage fees are now $0.78 per cubic foot (January–September) and $2.40 per cubic foot during peak season (October–December).
Long-term storage fees apply after 181 days, starting at $1.50 per cubic foot and increasing to $6.90 per unit for inventory stored over a year.
New "smart storage" tools and split processing fees aim to simplify cost tracking.
Aged inventory surcharge adds significant costs for items stored over 365 days, making fast inventory turnover critical.
Actionable tips to reduce fees:
Audit inventory regularly and clear out slow-moving stock.
Use Amazon FBA Liquidations to recover value from excess inventory.
Plan around peak seasons to avoid higher fees.
Leverage Amazon's updated fee calculators and inventory tools for better cost management.
Managing storage costs in 2025 requires smarter inventory strategies and proactive planning. Stay ahead with these insights to protect your margins.
Amazon Storage Fees: What You Need to Know to Save Money | Tips from Seller with 400K+ Reviews
Major Fee Changes for 2025
Amazon has introduced updates to its fee structure for 2025, focusing on storage costs that vary based on product size and weight. These changes aim to better align fees with the dimensions and weight of the items.
Size and Weight Categories
Standard-Size Apparel: Fees range from $3.43 to $7.17, depending on the item's weight and dimensions [1].
Oversized Non-Apparel Items: Charges are calculated per pound. For lighter items, the cost begins at $9.73 plus $0.42 per pound. Heavier items (over 90 pounds) see rates starting at $158.49 plus $0.83 per pound [1].
These adjustments reflect Amazon's efforts to create a more tailored pricing structure for sellers.
Monthly vs. Long-Term Storage Costs
Amazon applies monthly storage fees to all inventory and tacks on extra long-term storage fees for items kept in their warehouses for over a year. While monthly fees fluctuate depending on the product type and the season, long-term storage fees can significantly increase your costs. Knowing the difference between these charges is key to keeping your expenses in check.
The aged inventory surcharge is another expense to watch out for. This fee can add up quickly, making it essential to keep your stock moving. If your inventory turnover slows down, these charges will stack on top of your regular monthly fees, leading to much higher costs.
Here’s how sellers can manage these fees effectively:
Audit your inventory regularly to spot slow-moving or outdated products.
Adopt dynamic pricing and run targeted promotions to boost sales and clear out older stock.
Act quickly with removal orders for items nearing the long-term storage threshold.
Keep an eye on Amazon's Inventory Health reports to identify products that might trigger additional charges.
How to Lower Storage Fees
Cutting down storage fees in 2025 starts with smart inventory management.
Stock Rotation Best Practices
Keeping your Inventory Performance Index (IPI) score above 400 is crucial to avoid storage restrictions. Use a reorder point formula to strike the right balance between sales and stock levels. Be mindful of how long your products sit in storage - items held for over 271 days start to rack up long-term storage fees, and anything older than 365 days could face charges up to 13 times the standard rate. To stay on top of this, regularly audit your inventory using real-time tracking tools to identify and address surplus stock.
For immediate relief from excess inventory costs, consider programs designed to tackle this issue head-on.
Amazon FBA Cost-Saving Programs
Pair your inventory rotation strategy with Amazon's FBA Liquidations program. This option allows you to recover 5–20% of your product's value while stopping additional fees from piling up. Below is the updated fee structure for processing liquidations:
Item Type and Category | Weight Range | Processing Fee |
|---|---|---|
Standard-size items | 0–0.5 lb | $0.25 |
0.5–1.0 lb | $0.30 | |
1–2.0 lb | $0.35 | |
Over 2.0 lb | $0.40 + $0.20 per lb above 2 lb | |
Oversize and special handling items | 0–1.0 lb | $0.60 |
1.0–2.0 lb | $0.70 | |
2.0–4.0 lb | $0.90 | |
4.0–10.0 lb | $1.45 | |
Over 10.0 lb | $1.90 + $0.20 per lb above 10 lb |
Seasonal Inventory Planning
Another way to reduce fees is by syncing your inventory levels with seasonal demand. Storage fees tend to spike during peak months (October through December), often doubling or tripling compared to off-peak times. To handle this, try these strategies:
Use Amazon's Fulfillment Center Storage System to optimize product placement.
Run targeted ad campaigns to move slow-selling stock before peak season hits.
Automate liquidation removals for both fulfillable and unfulfillable inventory.
Take advantage of Amazon Outlet Deals to clear out aging stock before fees increase.
Tracking your inventory turnover ratio (Cost of Goods Sold ÷ Average Inventory) can also guide your decisions. This metric helps you identify when to roll out promotions or explore alternatives like Amazon's SPN service provider network for overseas storage solutions.
For sellers looking for tailored advice on managing inventory and slashing storage costs, eStore Factory (https://estorefactory.com) offers Amazon consulting services customized to your business goals.
Storage Fee Calculator Tools
Amazon's 2025 fee calculator tools are taking the guesswork out of storage costs by offering precise projections. These tools are designed to help sellers track and manage storage expenses across multiple marketplaces with ease.
2025 Amazon Fee Calculator
The latest Amazon FBA Fee Calculator is built to deliver accurate fee estimates based on exact product dimensions. It automatically identifies the right size tier for your product, using these categories:
Small Standard Size: Up to 166 in³, 1 lb or less
Medium Standard Size: Up to 1,728 in³, 3 lbs or less
Large Standard Size: Up to 10,368 in³, 10 lbs or less
Oversize: Anything larger
The tool also applies category-specific referral rates, such as:
8% for electronics
15% for most general categories
17% for clothing and accessories
One of the key updates for 2025 is a refined dimensional weight calculation, enabling sellers to better predict storage costs throughout the year. The calculator now clearly displays both monthly and peak season storage rates, helping sellers plan more effectively. Plus, it integrates smoothly with other planning tools for a more streamlined experience.
Storage Cost Planning Tools
Amazon has also upgraded its inventory management tools to give sellers a better handle on their costs. The FBA Revenue Calculator and Fee Preview report now offer deeper insights to aid in cost planning. Here's what they bring to the table:
Feature | Capability |
|---|---|
Storage Projection | Forecasts monthly and long-term fees |
Inventory Aging | Monitors how long products have been stored |
Size Optimization | Recommends packaging improvements |
Peak Season Planning | Estimates storage fee changes during busy periods |
Another bonus? These tools now work seamlessly with Amazon Global Logistics (AGL), allowing sellers to include inbound placement service fees in their cost calculations. This means you can get a clear picture of your landed costs, even when managing inventory across international marketplaces.
For sellers looking to stay ahead, eStore Factory's consulting services offer expert guidance on using these tools effectively. They can help craft strategies to keep storage costs in check all year long.
Conclusion: Action Steps for Sellers
The changes in Amazon's 2025 storage fee structure call for careful planning and smart strategies to keep your business profitable. Here's how you can stay ahead and manage your storage costs effectively:
Keep an Eye on Aging Inventory
Amazon's long-term storage fees can add up quickly: $1.50/cu ft for items stored 181–270 days, $3.80/cu ft for 271–365 days, and $6.90 per unit for anything over 365 days. Regularly monitor your inventory and take action before hitting these costly thresholds.
Plan Your Storage Calendar Wisely
Timing is everything when it comes to managing storage costs. Avoid high fees by scheduling stock arrivals during non-peak months (January through September) and keeping inventory levels low during the peak season (October through December).
Storage Period | Standard Size Rate | What to Do |
|---|---|---|
January–September (Non-Peak) | $0.78/cu ft | Stock up thoughtfully |
October–December (Peak) | $2.40/cu ft | Limit inventory |
181–270 days | $1.50/cu ft surcharge | Clear out older stock |
271–365 days | $3.80/cu ft surcharge | Liquidate quickly |
Streamline Inventory Practices
Efficient inventory management is critical. Use a strict FIFO (First In, First Out) approach to move products quickly and avoid long-term fees. Set up alerts for aging stock and consider splitting shipments to keep inventory fresh.
Leverage Amazon's Tools
Take advantage of Amazon's inventory planning tools to estimate storage costs and fine-tune your stock levels. These tools can help you make informed decisions and adjust your strategy as needed.
Staying on top of your inventory and storage fees can make a big difference in your bottom line. Proactive management will be essential to protect your profits in 2025. For more personalized advice and solutions, check out eStore Factory's expertise in inventory and fee optimization.
FAQs
What are the best strategies to manage inventory and avoid Amazon's long-term storage fees in 2025?
To sidestep Amazon's long-term storage fees in 2025, staying on top of your inventory game is essential. Use the reports available in Seller Central to regularly check the age of your inventory. If you spot items that have been sitting for more than 180 days, it's time to act. Options like offering discounts, running limited-time promotions, or liquidating excess stock can help clear out stagnant products, free up storage space, and cut down on fees.
Smart inventory planning is just as important. Avoid overstocking by accurately forecasting demand and restocking only when necessary. Striking the right balance between supply and demand not only helps keep storage costs in check but also keeps your cash flow steady. A little organization and strategy can go a long way in managing these fees effectively.
How can I reduce Amazon storage fees during the busy holiday season from October to December 2025?
To keep Amazon storage fees in check during the busy holiday season, focus on efficient inventory management. Start by trimming down excess stock and promptly removing items that aren't selling well. This approach helps you avoid hefty long-term storage fees. Plus, maintaining a steady inventory turnover rate allows you to benefit from Amazon's tiered fee structure, which favors sellers with streamlined stock management.
Keep a close eye on your inventory levels and leverage Amazon's removal reports to spot underperforming products. Consider offering discounts or running promotions to move slow-selling items and free up storage space. By planning ahead and staying on top of your inventory strategy, you can effectively manage costs during this hectic time of year.
How can Amazon's new smart storage tools and fee calculators help sellers save on storage costs?
Amazon has introduced smart storage tools and fee calculators aimed at helping sellers streamline their inventory management and cut down on storage costs. These tools offer real-time insights and predictive analytics, allowing sellers to pinpoint slow-moving products, predict storage requirements, and make proactive adjustments to stock levels.
The fee calculators enable sellers to estimate storage costs based on their current inventory and projected sales trends. This not only supports more effective financial planning but also helps sellers make the most of their storage space while steering clear of unnecessary fees. By utilizing these tools, sellers can maintain a leaner and more cost-efficient inventory approach.
