Long-Term Storage Fees (LTSF) are additional charges Amazon applies to sellers who keep inventory in fulfillment centers for extended periods.
These fees are meant to encourage sellers to manage inventory efficiently and avoid overstocking slow-moving products. LTSF is charged on top of standard monthly storage fees and can significantly impact profitability if inventory is not actively monitored and optimized.
- When it applies: Inventory stored beyond Amazon’s aging thresholds (typically over 181 days, with higher fees after 365 days) becomes subject to long-term storage charges.
- How fees are calculated: Charges are based on the greater of the inventory’s cubic volume or a per-unit minimum fee, making excess or unsold stock costly over time.
- How to reduce costs: Sellers can prevent LTSF by improving sales velocity, running promotions, adjusting pricing, forecasting demand accurately, or removing excess inventory before fees apply.
