Storage Fee
Also known as: Warehousing Fee, Inventory Storage Fee, Storage Charges
Definition
Storage fees are charges for holding inventory or packages in a warehouse, fulfillment center, or carrier facility. These fees incentivize efficient inventory movement and compensate facility operators for space used.
Types of Storage Fees
Warehouse/3PL Storage
- Pallet storage - Monthly fee per pallet position
- Bin storage - Fee per bin or shelf location
- Cubic storage - Based on cubic feet used
- Square footage - Fee per square foot of floor space
FBA Storage
- Monthly storage - Per cubic foot, varies by season
- Long-term storage - Items over 365 days
- Aged inventory surcharge - Items 181-365 days
Carrier Storage
- Terminal storage - Freight held at carrier facility
- Will-call storage - Packages awaiting pickup
- Undeliverable storage - Failed delivery items
Typical Storage Rates
| Type | Typical Rate |
|---|---|
| Standard pallet | $15-35/month |
| 3PL per cubic foot | $0.40-0.75/month |
| Amazon (Jan-Sep) | $0.87/cubic foot |
| Amazon (Oct-Dec) | $2.40/cubic foot |
| Carrier terminal | $25-100/day after free days |
How to Reduce Storage Fees
- Improve inventory turns - Sell faster
- Right-size inventory - Order smaller, more frequent replenishments
- Liquidate slow movers - Clear out aged inventory
- Optimize space usage - Stack efficiently, use vertical space
- Coordinate timing - Align inbound with outbound
Storage Fee Calculations
Many 3PLs calculate based on:
- Average inventory - Daily snapshot averaged over month
- Peak inventory - Highest level during month
- End of month - Snapshot on last day
Seasonal Considerations
Storage costs often increase during peak seasons:
- October-December for retail
- Summer for produce/cold storage
- Holiday inventory builds
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