Chapter 5.2: Storage, returns and other fees
What you'll learn: what it costs to keep stock in Amazon's warehouses, the surcharges for stock that sits too long, how returns and refunds are charged, and which fees UK-only sellers don't pay at all.
Monthly storage
Amazon charges a monthly fee for the space your stock takes up, measured in cubic feet (1 cubic foot is about 28,300 cm³). The rate is higher from October to December, when warehouse space is in demand.
| Product type | January to September | October to December |
|---|---|---|
| Standard size (not dangerous goods) | £0.76 per cu ft | £1.51 per cu ft |
| Clothing, eyewear, footwear and bags (standard size) | £0.62 per cu ft | £0.82 per cu ft |
| Oversize | £0.55 per cu ft | £0.87 per cu ft |
Rates exclude VAT. Dangerous-goods rates and full details: Monthly storage fees (Seller Central).
For a small item this is pennies. Our boxed toy from 5.1 (38 × 20 × 5 cm) takes up about 0.13 cu ft, so it costs about 10p a month from January to September and about 20p from October to December. Storage only becomes significant for bulky items or stock that doesn't sell, which is why steady sellers matter so much.
Surcharges for stock that sits too long
Two surcharges encourage sellers to keep stock moving. Neither should trouble a beginner who buys sensibly, but it's good to know they exist.
- Aged inventory surcharge: stock that has been in Amazon's warehouses for 241 days or more is charged an extra monthly fee, which rises the longer it stays. Aged inventory surcharge (Seller Central)
- Storage utilisation surcharge: applies when you hold a lot of stock compared with what you sell (more than about 22 weeks' worth). New sellers are exempt for their first 52 weeks after their first shipment, and so are sellers storing under 25 cubic feet. Storage fees (Seller Central)
The simple habit that avoids both: buy quantities you expect to sell within a couple of months, and review slow sellers regularly (Chapter 28 covers pricing and repricing).
Returns and refunds
Amazon customers can return most items, and some returns carry a fee:
- Clothing and footwear: a returns processing fee on every returned unit where the customer had free returns, equal to 50% of the item's fulfilment fee.
- Other categories: a fee applies only to returns above a threshold return rate for that category. Sellers who ship fewer than 25 units a month are exempt.
- Refund administration fee: when you refund a customer, Amazon refunds most of the referral fee but keeps an admin fee of £5.00 or 20% of the referral fee, whichever is less.
Details: Returns processing fees (Seller Central) and Amazon UK Learn.
Fees UK-only sellers don't pay
You may see these mentioned in videos or forums, especially US ones. If you sell only on Amazon.co.uk, they don't apply to you:
- Inbound placement fee: a US fee for how stock is split between warehouses. There's no UK equivalent.
- Low-inventory fee: in Europe this is charged only in some EU stores under the Pan-European FBA programme. It isn't charged on UK sales.
US fees work differently (different referral minimums, price-banded fulfilment fees and the two fees above). The tool works the same way, but always use the UK figures in this handbook and in your ArbiSource UK account.
Other costs to keep in mind
These aren't Amazon referral or fulfilment fees, but they all affect your profit:
- Your monthly plan: £25 + VAT for Amazon Professional (Amazon UK pricing), plus your ArbiSource subscription.
- Prep supplies: FNSKU labels, polybags, bubble wrap and boxes, or a prep centre's per-unit charge.
- Shipping to Amazon: usually charged per box. Each box can weigh up to 23 kg (Chapter 26).
- Removals and disposals: a fee if you ask Amazon to send back or dispose of unsold stock.
- Optional extras: deals, coupons and advertising, if you choose to use them.
In ArbiSource
- Storage: if you add how many months you usually hold stock under Account → Settings → Additional Costs, ArbiSource estimates storage on every product from its size and category, allowing for the higher October to December rates. This is optional, and it's fine to leave it until you know your typical selling speed (4.3).
- Slow sellers: the sales estimate and price history graph on each result (Part 3) help you avoid stock that would sit long enough to attract surcharges.
Checklist
- I know storage is charged per cubic foot and rises from October to December
- I know the aged inventory surcharge starts at 241 days, and that new sellers are exempt from the utilisation surcharge for 52 weeks
- I know clothing and footwear returns carry a fee on every free return
- I know the inbound placement and low-inventory fees don't apply to UK-only sellers