How to reduce Amazon FBA storage and removal fees

Reducing Amazon FBA storage and removal fees starts with keeping inventory levels tightly aligned to actual sales velocity and using regular reviews to prevent stock from sitting too long in fulfilment centres. By monitoring performance metrics and adjusting reorder quantities, UK sellers can minimise charges that apply to excess or slow-moving stock.

This guide outlines concrete steps that early-stage founders and e-commerce sellers in the UK can take to control inventory, reduce long-term storage costs and optimise overall fulfilment expenses while selling on Amazon and other marketplaces.

Understand how Amazon calculates storage and removal fees

Amazon charges storage fees based on the volume of space your inventory occupies in their fulfilment centres and the length of time it remains there. Long-term storage fees apply to items that stay in FBA warehouses beyond a set period, typically adding extra costs per cubic foot or per unit after that point. Removal fees cover the cost of having unsold stock sent back to you or disposed of.

These fees change periodically, so always check Amazon Seller Central for the current rates. The key is to avoid letting inventory age beyond the point where additional charges kick in. Regular analysis of how quickly products sell helps you stay ahead of these costs rather than reacting after they appear on your invoice.

Track sales velocity and set reorder limits

Calculate your average weekly or monthly sales for each product using Amazon’s reports. Divide total units sold by the number of weeks or months in the period to find velocity. Use this figure to decide how much stock to send into FBA at any one time. A practical rule is to send only enough to cover expected sales for the next 30 to 60 days, depending on supplier lead times.

For example, if a product sells 15 units per week on average, aim to keep no more than 90–180 units in FBA. Adjust this number downwards during slower seasons such as January after the Christmas peak. Review velocity every four weeks and update your reorder quantities. This prevents overstocking and reduces the risk of triggering long-term storage fees.

Use FBA inventory reports to identify slow movers

Download the Inventory Age and Inventory Performance Index reports from Seller Central on a weekly basis. These show how long each SKU has been in FBA and flag items approaching or already in long-term storage. Sort the reports by age and focus first on anything older than 90 days.

Create a simple spreadsheet with columns for SKU, units in stock, days in FBA, weekly sales and projected weeks of cover. Mark any line where weeks of cover exceed 12 as a priority for action. This systematic check lets you catch problems early rather than waiting for the monthly bill to highlight them.

Practical tactics to clear excess UK inventory

When you identify excess stock, several UK-specific options exist. First, create a removal order in Seller Central to have the stock returned to your address or a 3PL warehouse. Factor in courier costs from the fulfilment centre to your location; many UK sellers use services such as Royal Mail or DPD for smaller volumes. Alternatively, dispose of the stock through Amazon’s disposal service if the product value is very low.

Another route is to sell slow-moving lines on other UK marketplaces such as eBay, Etsy or OnBuy at a reduced price. Bundle them with faster-selling items or use them as gifts with purchase on your own website. Some sellers also supply the excess to local independent retailers or wholesalers in Kirklees and surrounding West Yorkshire areas. Whichever method you choose, act before the item reaches the long-term storage threshold to avoid the extra monthly charge.

Optimise fulfilment by mixing FBA and FBM

Not every product needs to be in FBA. For items with low or unpredictable sales, consider fulfilment by merchant (FBM). This keeps the stock on your premises or with a UK 3PL so you avoid storage fees entirely. Use FBM for seasonal products that you can ship yourself during peak periods.

Many UK sellers run a hybrid model: keep core bestsellers in FBA for Prime eligibility and hold slower lines in their own warehouse or with a fulfilment partner in northern England. Compare the total cost of storage plus removal against the postage cost of sending directly to customers. Update this comparison every quarter because both Amazon fees and Royal Mail or courier rates change.

Set up automated alerts and routines

Use Amazon’s automated notifications for low stock and excess inventory warnings. Combine these with a weekly 30-minute routine where you review the inventory performance dashboard. Many sellers create a simple checklist: check velocity, flag items over 90 days old, decide action (remove, discount, bundle), and place removal orders if needed.

Tools such as spreadsheet templates or basic inventory software can automate parts of this process without extra cost. The goal is to make inventory management a repeatable habit rather than a monthly fire-fighting exercise. Consistent attention to these details typically keeps storage and removal fees to a minimum.

Review supplier order quantities and lead times

Long supplier lead times often force larger orders that then sit in FBA. Negotiate shorter delivery windows with UK or EU suppliers where possible. If you import from further afield, reduce minimum order quantities or use sea freight for bulk and air for smaller top-up orders. Align your purchase order quantities directly to the sales velocity figures you calculated earlier.

For instance, if lead time is six weeks and weekly sales are 20 units, a sensible order might be 140–200 units rather than ordering 500 at a time. This tighter control reduces both cash tied up in stock and the volume exposed to storage charges. Revisit supplier terms every six months as your sales patterns evolve.

Frequently asked questions

How often should I check my Amazon FBA inventory levels?

Check your inventory performance and age reports at least once a week. This frequency lets you spot slow-moving stock before it incurs long-term storage fees. Set a recurring calendar reminder and spend 20–30 minutes reviewing the data and taking action on any items older than 90 days.

What is the best way to remove excess stock from Amazon FBA in the UK?

Create a removal order in Seller Central and choose return to your UK address or a local 3PL. For small quantities, use Royal Mail or a courier such as DPD. Act early to avoid long-term storage charges. If the product has very little value, disposal through Amazon may be the cheapest option.

Can I avoid long-term storage fees completely?

You can minimise them significantly by sending in only enough stock to cover 30–60 days of sales and by regularly removing or discounting items that sell slowly. A hybrid approach using both FBA and FBM for different products also helps keep overall storage costs down. Consistent monitoring is essential.

Should I use FBA for every product I sell?

No. Reserve FBA for your fastest-selling lines that benefit from Prime delivery. For slower or seasonal items, fulfilment by merchant or a UK 3PL often works out cheaper when you factor in storage and potential removal fees. Review the numbers for each product every quarter.

How do I calculate the right amount of stock to send to FBA?

Divide your average weekly sales by the number of weeks you want to cover (usually four to eight). Adjust for supplier lead time and any upcoming promotions. Update the calculation monthly because sales velocity can change quickly, especially for new or seasonal products.