Amazon FBA Storage Fees Are Rising in 2025 – Here’s How to Keep Costs Low

Amazon’s fulfillment services have long been a cornerstone for sellers aiming to reach a vast customer base efficiently. However, with the announcement of the Amazon storage fee increase in 2025, it’s crucial to understand these changes and implement strategies to reduce FBA storage costs and avoid unnecessary fees.

Understanding the 2025 FBA Storage Fee Changes

In 2025, Amazon has announced that it will not increase U.S. referral and FBA fees and will not introduce any new fee types. Additionally, some fees will be lowered, and additional benefits will be provided to support new selection growth.

For a breakdown of Amazon’s 2025 fee changes, check out our blog here.

Strategies to Minimize FBA Storage Fees

While the fee structure remains stable, effective inventory management is essential to reduce long-term storage costs and avoid extra FBA fees. Here are actionable strategies to help you keep your FBA storage costs in check:

1. Optimize Inventory Levels

Accurate Demand Forecasting: Utilize historical sales data and market trends to predict future demand accurately. This ensures you maintain optimal stock levels, reducing the risk of overstocking.
Regular Inventory Audits: Conduct periodic reviews to identify slow-moving or obsolete stock. Implementing promotions or discounts can help clear out these items, freeing up storage space.

2. Leverage Amazon’s Inventory Management Tools

Amazon provides tools to help sellers optimize inventory and reduce FBA long-term storage fees. One of the most important is the Inventory Performance Index (IPI) Dashboard:

IPI Score & Impact on Fees – A low IPI score can lead to storage restrictions and overage fees, while a high score helps avoid these costs.
Key Metrics to Monitor:
- Excess Inventory – Overstocked products that could lead to long-term storage fees.
- Sell-Through Rate – Ensuring inventory moves efficiently to avoid unnecessary storage costs.
- Stranded Inventory – Products that can’t be sold due to listing issues, requiring action.
Recommended Actions: The dashboard suggests price adjustments, restocking strategies, and removal options to help sellers maintain an optimal inventory balance.

By actively managing your IPI score, you can avoid unnecessary storage costs and improve inventory efficiency.

3. Utilize Removal and Liquidation Options

Removal Orders: If certain products aren’t selling as expected, consider creating removal orders to return the inventory to you, thus avoiding long-term storage fees.
FBA Liquidations: This program allows you to recover a portion of your inventory cost by liquidating unsold products through Amazon’s wholesale partners.

4. Optimize Packaging and Product Dimensions

Compact Packaging: Reducing the size of your product packaging can decrease the storage space your inventory occupies, leading to lower storage fees.
Product Bundling: Combine complementary products into a single offering. This strategy can increase sales velocity and reduce the number of individual items stored.

5. Explore Alternative Fulfillment Options

Third-Party Logistics (3PL): Partnering with 3PL providers can offer more flexible storage solutions, especially for products with fluctuating demand.
Seller-Fulfilled Prime (SFP): This program allows you to fulfill orders directly while still displaying the Prime badge, potentially reducing reliance on FBA storage.

Quick Tips for Lowering Amazon FBA Storage Fees
-Monitor your IPI score to avoid storage restrictions
-Remove or liquidate slow-moving inventory before long-term fees hit
-Use compact packaging to reduce storage space
-Leverage 3PL storage for non-essential FBA inventory

FAQs About Amazon FBA Storage Fees in 2025

Why are Amazon FBA storage fees increasing in 2025?

Amazon adjusts its FBA storage fees to optimize fulfillment efficiency and account for changes in warehouse costs. Managing inventory effectively can help sellers reduce expenses.

How can I lower my FBA long-term storage fees?

Improve your IPI score, remove excess inventory, optimize product dimensions, and leverage Amazon’s liquidation program.

What happens if my IPI score is too low?

Amazon may restrict your storage limits, leading to additional fees or preventing you from sending in more inventory.

How Seller Labs Can Help

Navigating inventory management complexities is crucial for minimizing storage fees. Seller Labs offers tools designed to streamline this process:

Restock App: Provides insights into optimal restocking quantities and timing, helping prevent overstocking and stockouts.
Inventory Alerts: Helps sellers stay on top of inventory changes by notifying them when stock levels drop, allowing proactive replenishment.

By implementing these strategies and leveraging the right tools, you can effectively manage your inventory and keep Amazon FBA storage fees to a minimum in 2025 and beyond.

Avoid paying more in Amazon FBA storage fees!

Start optimizing your inventory today with Seller Labs’ powerful tools.

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