Glossary Term
FBA Inventory Age
A metric that tracks how long your products have been sitting in Amazon fulfillment centers, used to calculate long-term storage fees.
The Cost of Slow Inventory
Amazon is a fulfillment center, not a storage warehouse. They want products to move in and out quickly. Once your inventory passes the 180-day mark, it starts accruing much higher storage fees. Keeping a close eye on your "Inventory Age" is vital for maintaining a healthy cash flow.
Strategies for Aging Inventory
If your inventory is getting old, you have a few options: run a "Liquidations" sale, create a "Removal Order" to bring it back to your warehouse, or use an "Outlet Deal" to move it quickly. Managing these transitions requires fast re-labeling and organization to get the products ready for their next destination.
- Inventory over 180 days is subject to surcharges.
- Directly impacts your Inventory Performance Index (IPI).
- Use "First-In, First-Out" (FIFO) strategies to manage stock.