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This article applies to selling in: Canada

FBA Inventory Age

The FBA Inventory Age view gives you information regarding the age of your units in FBA. This page shows you the number of units in each age group, the number of units that will be subject to the long-term storage fee (LTSF) on the next charge date and the estimated LTSF amount for those units (assuming no further sales). The view also shows your recent sales performance for each SKU and identifies opportunities for you to increase traffic or sales conversion to help sell through your aged inventory.

Important: Inventory Age is intended to provide you with information to help manage your inventory levels, but use of this tool should not be a substitute for your own judgment about demand for your products. Many factors may influence the actual demand for your products, including price fluctuations, consumer demand shifts and changes in competing offers for those products.

Frequently asked questions

How is inventory age determined?

Inventory age is based on the number of days for which a unit is in a fulfilment centre. FBA accounts for inventory on a first-in-first-out basis across our entire fulfilment network. This means that each sale or removal will be applied to the inventory that has been in our fulfilment network the longest, regardless of which physical unit was actually shipped or removed.

Which products are shown in the Inventory Age view?

Any product that has at least one unit available for sale in FBA is shown in the Inventory Age view.

What is the long-term storage fee (LTSF)?

On 15 February and 15 August of every year, FBA conducts an inventory assessment. On these dates, inventory that has been in Amazon fulfilment centres for more than 365 days incurs a long-term storage fee (LTSF) of CAD $ 800 per cubic metre. The Inventory Age view shows your LTSF-eligible units and the estimated LTSF amount as of the next charge date, assuming no further sales. You can click on the estimated LTSF to see a breakdown of the unit counts and LTSF amount. For more information about long-term storage fees, please see our FBA Long-Term Storage help page.

How should I use this page to manage aged inventory?

Our goal is to help you easily identify aged inventory that may incur long-term storage fees and provide recommended actions aimed at helping you better manage the investment return on your inventory. In some cases, the recommendation may be to remove units from your inventory, in other instances, we may not recommend any action if your inventory levels are not in excess. Select Improve Recommendation in the drop-down menu to ensure that we have accurate information for these SKUs. Several factors influence our recommendations:

SKU-level alerts

  • Quality alert – Indicates that the listing may be incomplete or incorrect. Customers search and browse the Amazon catalogue using specific product details. If your listing information is incomplete or incorrect, it becomes more difficult for buyers to find, evaluate and purchase your inventory. Clicking Edit Listing will allow you to edit the listing and fix quality issues.
  • Low traffic – Indicates that a low number of potential buyers have seen the listings. Use the Improve Keywords feature in the actions list to optimize how your listing appears in searches. The Advertise Listing feature allows you to advertise through Sponsored Products to drive additional traffic to your listing.
  • Low conversion – Indicates that potential buyers are viewing the listing but do not follow through and purchase the product. Ensuring a high-quality detail page through the Edit Listing feature and pricing competitively through Create Sale or Lower Price helps improve conversion rates. In some cases, due to low demand, we may recommend removing some of the inventory if removal is more cost effective than incurring storage fees.

Demand and Sell-through

In addition to the alerts, you can also view how many units of a product have been sold over the last 7, 30, 60 and 90 days by hovering over a product’s Units Sold column. The Sell-through column allows you to see your sales divided by the average number of units available at fulfilment centres during the past 90 days. If you find that you have items that you’d like to remove from your inventory, click Create removal order from the action menu.

Inventory Settings

In your Inventory Settings, you can enter details about your inventory cost structure to help us to make better recommendations. These settings include:

  • Cost of purchase – The cost of your products as a percentage of their current selling price. The default value is 50%. You can also enter unit cost at the SKU level for more accurate recommendations.
  • Cost of capital – The minimum return that you want to earn on your inventory. The typical range is 0–25%. The default is 15%.
  • Recovery rate – The expected recovery as a percentage of the cost if you removed your inventory from Amazon and sold the inventory on your own. The recovery rate should refer to all of your inventory, not a single unit. For example, if there are five units of a SKU, and you can recover 50% on all units through liquidation, then the input should be 50%. However, if you can only recover 50% of three units and 0% for two units, the input should be 30%. The default is 30%. If you do not have a set channel to recover costs through, such as a buy-back contract with your supplier, we suggest you set this value to 0%.

What if I want to use different inputs to identify potentially excess inventory?

You can set your own unit cost and recovery rate per SKU by selecting Improve Recommendations in the drop-down menu. You can make changes to your default settings by clicking the Inventory Settings link. After making changes, please allow up to 24 hours for the changes to be reflected in your recommendations.

How can I provide feedback about the Inventory Age view?

Your feedback is important for helping us improve our inventory management tools. If you think that there may be an opportunity for improvement, please provide us with your feedback in one of the following ways:

  • Rate the page using the Tell us how we're doing link on the Inventory Age view
  • Email inventoryplanning@amazon.com

Glossary of Terms

Available quantity

The number of units that are available for fulfilment through FBA.

Cubic metres

The volume in cubic metres that the ASIN is taking up in Amazon fulfilment centres. Available units x volume per unit = cubic metres.

Storage type

Category of the product for which storage limits are set. Products are categorized into one of six possible storage types: standard-size, oversized, clothing, footwear, flammable or aerosol.

Inventory age (days)

Shows a breakdown of your FBA units by age group. We separate your units into the following age groups: 0–90 days, 91–180 days, 181–270 days, 271–365 days and 365+ days.

Est. LTSF

Shows the estimated long-term storage fee amount that will be incurred on the next charge date (15 August or 15 February) and the number of units subject to the fee, assuming no further sales or removals of the item.

Low conversion (yellow alert icon)

An alert that indicates that fewer buyers are purchasing the product after viewing the listing relative to other listings in the same category.

Low traffic (yellow alert icon)

An alert that indicates that the ASIN listing has a low number of viewers compared to other ASINs in the same category.

FBA sell-through

The rate at which your units sold and shipped over the past 90 days divided by the average inventory available at fulfilment centres during that time period. Tracking your sell-through rate can help you determine whether you need to take action to improve traffic or conversion for your products.

Recommended sales price (create sale)

Sales price recommended to help you sell through your inventory based on your current inventory settings. This value may be different from the lowest price or Buy Box price. We recommend that you keep your product at this price until you have sold through your excess inventory.

Recommended sale duration (create sale)

If a sale is recommended, this is the estimated sale duration in days that would likely help you sell through your excess inventory.

Recommended removal quantity (create removal order)

Estimated quantity of inventory that would likely benefit from removal instead of being charged storage fees.

For a more detailed analysis of your FBA inventory age, you can download the full report as a .txt file by selecting the Download Report button in the upper left of the page. See Inventory Age Report for more information.

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