Reminder: Aged inventory surcharge

Aged inventory surcharge (previously known as the long-term storage fee) is charged on inventory units stored in Amazon fulfillment network for 181 days and above.

Aged inventory surcharges are assessed using an inventory snapshot on the 15th day of each month and is in addition to the monthly inventory storage fee.

We calculate inventory age on a first-in, first-out basis across the entire fulfillment network. Items that are 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. For example, if an associate picks and ships a unit that arrived in the fulfillment center only recently, we will still deduct that unit from the oldest inventory in stock.

To address aged inventory and avoid surcharges, we’ll review our inventory regularly and take proactive steps to manage it effectively. This may include optimizing our product listings, adjusting pricing strategies, running promotions to clear out older inventory, or liquidating excess stock through clearance sales.

By staying vigilant and implementing proactive measures, we can mitigate the risk of aged inventory surcharges and maintain a healthy inventory turnover rate.

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