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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.