How to Use Amazon Repricing to Clear Slow-Moving FBA Inventory Before Long-Term Storage Fees Hit

Last verified: September 2026

FBA sellers pay Amazon’s aged inventory surcharge on any unit stored for more than 271 days. The fee compounds monthly, and the longer the stock sits, the worse the math gets. Most sellers know this. But they do not adjust their repricing minimum prices to respond. The result: inventory ages past the fee threshold while a minimum price set months ago prevents it from clearing. This article gives you the break-even calculation, the minimum price adjustment, and the rule configuration to move aged stock before fees make the decision for you.

TL;DR: Amazon’s aged inventory surcharge charges per unit per month on stock stored 271 days or more. The moment total projected fee cost exceeds the loss on a discounted sale, selling below cost is the financially correct decision. Lower your minimum price temporarily in RepricerExpress to trigger competitive repricing at the reduced floor. Monitor sell-through weekly. Restore your normal minimum once stock clears.

What Amazon’s aged inventory surcharge is and when it charges

Amazon charges a monthly aged inventory surcharge on FBA inventory stored for more than 271 days. The fee is assessed on the 15th of each month based on the units present in the fulfillment center at that point.

Amazon renamed its “long-term storage fee” to the “aged inventory surcharge” in April 2023. Sellers still commonly call it LTFS, and the underlying mechanic is the same: the longer your inventory sits, the more it costs you beyond the standard monthly storage rate.

The surcharge applies in two tiers:

• 271 to 365 days: $0.50 per cubic foot, with a minimum charge of $0.10 per unit
• More than 365 days: $1.50 per cubic foot, with a minimum charge of $0.15 per unit

These charges come on top of the standard monthly storage fee ($0.78 per cubic foot January through September; $2.40 per cubic foot October through December for standard-size items).

The 15th of the month is the critical date. Inventory present on the 15th is assessed at whatever age it has reached. Inventory that sells before the 15th avoids that month’s assessment entirely.

Two scenarios where this matters most:

1. Inventory approaching the 271-day threshold. A rule change in the next 30 days can clear it before the first surcharge hits.
2. Inventory already past 271 days and accumulating monthly surcharges. Every additional month costs more; the break-even case for a discounted sale gets stronger as fees compound.

For a general overview of Amazon’s storage fee structure, see our guide to Amazon long-term storage fees. For practical tactics to prevent inventory reaching the surcharge threshold in the first place, see our guide to avoiding Amazon storage fees.

The break-even calculation: when selling below cost beats paying the fee

The break-even question is straightforward: is the total projected surcharge you will pay higher than the loss on a discounted sale? If yes, the discounted sale is the correct financial decision.

Here is the framework:

Break-even liquidation price = COGS minus total projected surcharge costs

If you can sell the item at or above the break-even price, the liquidation recovers more than paying the fee while waiting for a full-price sale.

Worked example:

• COGS per unit: $10.00
• Unit size: 0.5 cubic feet
• Current inventory age at next assessment: 295 days (in the 271-365 day tier)
• Months remaining in the 271-365 day tier before crossing 365 days: 2 months
• Surcharge rate: $0.50 per cubic foot = $0.25 per unit per monthly assessment
• Projected surcharge over 2 months at this tier: $0.50 per unit
• After 365 days, surcharge rate jumps to $1.50 per cubic foot = $0.75 per unit per month

If the stock does not clear in 2 months, the fee compounds:

• 2 months at $0.25 per unit = $0.50
• Then $0.75 per unit per month at the 365-day-plus rate

Total surcharge over 5 months (2 months at the 271-365 rate, then 3 months at the 365-plus rate): $0.50 + $2.25 = $2.75 per unit

Break-even liquidation price: $10.00 minus $2.75 = $7.25

Any sale at $7.25 or above recovers more than doing nothing and paying fees. A sale at $7.00 costs you $3.00 total (COGS loss). But paying $2.75 in fees while waiting for a sale that may or may not come at $10.00 or above also costs you $2.75, plus the risk of the stock never selling.

Additional factors to account for in the calculation:

• FBA fulfillment fee: applies whether you sell now or later, so it is equal in both scenarios and does not change the break-even
• Amazon referral fee: same logic; applies to any sale at any price
• Opportunity cost of working capital tied up in unsold inventory: real but harder to quantify; it argues further in favor of the discounted sale
• Probability that the stock will sell at full price within the next 90 days: lower probability favors liquidation

If the item has not sold in 271 days at its current price, the likelihood of a full-price sale in the next 30 to 60 days without a price change is low. The break-even calculation makes explicit what the holding cost is.

Identifying at-risk inventory in Seller Central before the deadline

The Inventory Age report in Amazon’s Fulfillment by Amazon dashboard gives you a view of units by days-in-storage bracket. Pull it before the 15th of each month to identify what is approaching the 271-day threshold.

To access the Inventory Age report:

1. In Seller Central, go to Inventory, then FBA Inventory
2. Select the Inventory Age tab or navigate to Inventory, then Inventory Planning, then Inventory Age
3. Sort by the Age column to surface the oldest units first
4. Filter to show units in the 181-270 day bracket (approaching the first threshold) and the 271-day-plus bracket (already paying surcharges)

Amazon also surfaces a Recommended Actions panel within the FBA Inventory dashboard that flags units with upcoming or active storage fee risk. Checking this before the 15th each month gives you the window to act.

What to look for:

• Units in the 181-270 day bracket: approaching the first surcharge threshold. A sell-through in the next 90 days avoids the first assessment.
• Units in the 271-365 day bracket: already paying the lower surcharge tier. Run the break-even calculation to determine whether to discount.
• Units past 365 days: paying the higher tier. The break-even calculation almost always favors immediate action at this point.

Export the report and sort by total projected surcharge cost, not age alone. A large quantity of small, low-value items may generate more total fee exposure than a smaller quantity of high-value items that rank higher in an age sort.

Setting temporary minimum prices to trigger a sell-through

Lower the minimum price in RepricerExpress for the at-risk ASINs to a level at or above the break-even price. The repricer will then compete down to that floor to win the Buy Box and move units.

The process:

Step 1: Calculate the break-even minimum for each ASIN

Using the formula above: Break-even minimum = COGS minus projected surcharge costs. Add a small buffer above the calculated floor. This is your temporary liquidation minimum.

Example: if the break-even is $7.25, set the minimum at $7.50 to maintain a small buffer above the true break-even floor.

Step 2: Update the minimum price in RepricerExpress

Navigate to the ASIN in RepricerExpress, select the rule assigned to it, and update the minimum price field. Note the change date so it does not get left at the liquidation floor after the clearance event.

If you manage multiple ASINs under the same rule, change the minimum at the ASIN level rather than the rule level to avoid lowering the floor for items that do not need liquidation.

Step 3: Set a competitive target appropriate for clearance mode

In clearance mode, the goal is sell-through, not margin. Set your competitive target to match or undercut the lowest FBA offer rather than holding a spread above competitors. The objective is to hold the Buy Box at the minimum price floor, not to preserve a margin buffer above the market.

Step 4: Set a maximum price consistent with the current market

A maximum price above the current market will not prevent Buy Box wins, but it prevents the rule from pricing above where the item can realistically sell in a clearance scenario. Set it at or slightly above the current Buy Box price.

Using RepricerExpress Safe Mode: Before applying the clearance minimum to live inventory, use Safe Mode to preview where the rule would price the ASIN. Safe Mode runs the repricing logic without applying live price changes, giving you a preview of the output before committing to the adjustment.

For a walkthrough of Buy Box mechanics and how repricing rule configuration affects your Buy Box win rate, see our guide to winning the Amazon Buy Box. To build a broader rule structure that handles competitive, seasonal, and clearance scenarios across your catalog, see our guide to advanced FBA repricing rules.

Monitoring sell-through rate and adjusting the floor if clearance is too slow

Check sell-through weekly. If units are not moving at the current floor, lower the minimum further toward true break-even, or past it if total surcharge cost warrants selling at a loss.

What “too slow” means depends on your timeline:

• Next LTFS assessment within 14 days: you need rapid sell-through. Consider lowering the floor more aggressively and checking daily.
• Next assessment 30-plus days out: a slower turn is acceptable. Weekly monitoring is sufficient.

Weekly check process:

1. Pull the Inventory Age report and compare unit count week over week for the at-risk ASINs
2. Check Buy Box win rate for those ASINs in RepricerExpress
3. If units are not declining: check whether your minimum is holding the Buy Box, or whether a competitor is undercutting your floor

Three reasons clearance can stall:

1. Your floor is still too high for the market. The Buy Box price is above what buyers will pay for the item. Lower the minimum.
2. A competitor holds the Buy Box below your floor. You cannot compete at their price. Consider Amazon’s removal or disposal options if the break-even cannot be reached.
3. The listing has a conversion problem unrelated to price. No images, poor reviews, suppressed listing. Price changes will not fix these. Investigate the listing before lowering further.

If unit velocity is healthy but you are carrying more stock than will clear before the deadline, consider a partial approach: lower the floor on a portion of the units and hold standard pricing on the rest, using FBA removal orders for remaining stock that cannot clear at any price above the Amazon disposal cost.

For stock that cannot sell at any price above the Amazon Liquidations rate, Amazon offers FBA Liquidations (selling units to liquidation buyers at a fraction of cost) and FBA Disposal Orders. These are last-resort options, not repricing solutions. They set the floor below which a repricing-driven clearance is preferable. For additional strategies to move stagnant stock beyond price adjustment, see our guide to increasing sales on slow-moving inventory.

Restoring normal repricing rules once stock clears

Once the at-risk units have cleared, restore your standard minimum prices. A temporary liquidation floor left in place after the clearance event permanently reduces your margin on replenished stock.

The restoration process is straightforward but easy to overlook under operational pressure. Build it into your monthly inventory routine.

Step 1: Set a calendar reminder for the day after your target clearance date

Flag the date you expect units to clear (before the next 15th assessment). On that date, confirm whether the ASINs are at zero or near-zero for the at-risk units.

Step 2: Restore the standard minimum price in RepricerExpress

Navigate back to the ASIN-level minimum price you changed, confirm the at-risk units have cleared, and restore your normal minimum using the standard formula: (COGS + Fulfillment Cost) divided by (1 minus Referral Fee % minus Target Margin %).

If you also run PPC on this ASIN, use the extended formula that includes your average ACoS: (COGS + Fulfillment Cost) divided by (1 minus Referral Fee % minus Target Margin % minus Average ACoS %).

Step 3: Verify the competitive target is appropriate for standard mode

In clearance mode, the competitive target was set to match or undercut the lowest FBA offer. In standard mode, you likely want a small spread above the lowest offer or a targeted position relative to competitors. Restore this setting at the same time as the minimum.

Step 4: Document what worked

Note the minimum price you used, how long clearance took, and the sell-through rate at that floor. This gives you a calibrated starting point for the same ASIN on the next replenishment cycle if aging becomes an issue again.

Key Takeaways

• Amazon’s aged inventory surcharge (formerly LTFS) charges per unit per month from 271 days of storage: 0.50percubicfoot(0.10 per unit minimum) from 271-365 days, and 1.50percubicfoot(0.15 per unit minimum) past 365 days
• The break-even liquidation price is COGS minus the total projected surcharge you would otherwise pay. Any sale above that price recovers more than holding the inventory and paying fees
• Lowering the minimum price in RepricerExpress to the break-even floor lets the repricing rule find Buy Box-winning prices down to that floor without requiring manual price changes on every ASIN
• The 15th of the month is the assessment date. Inventory that sells before the 15th avoids that month’s surcharge entirely
• Restore standard minimums once at-risk stock clears. A liquidation floor left active after clearance permanently reduces margin on replenished inventory

Action Plan

1. Pull the Inventory Age report in Seller Central: Inventory, then FBA Inventory, then the Inventory Age tab
2. Filter for units at 181 days or older. Export and sort by total units and projected fee exposure
3. For each at-risk ASIN, calculate break-even minimum: COGS minus total projected surcharge over the next 3 months
4. Update the minimum price field for each ASIN in RepricerExpress to the break-even minimum (or slightly above for a buffer)
5. Set the competitive target to match or undercut the lowest FBA offer for clearance mode
6. Preview the output in Safe Mode before applying live
7. Check sell-through weekly in the week before the 15th. Adjust the floor downward if units are not moving
8. Once stock clears, restore standard minimum prices and competitive targets immediately

Frequently Asked Questions

1. How do I clear FBA inventory before long-term storage fees?

Lower your minimum price in your repricer to a level where your rule can compete for the Buy Box at a discounted price. The minimum price is the floor the repricing rule works down to when competing. If your current minimum is set above the competitive range, the rule cannot price low enough to win the Buy Box and generate sell-through. Calculate the break-even price (COGS minus projected fees), set the minimum at or slightly above that level, and let the rule compete down to it. Check the Inventory Age report in Seller Central to identify which ASINs need this treatment before the 15th of each month.

2. Should I lower my price to avoid Amazon long-term storage fees?

Yes, in most cases, when total projected fee cost exceeds the loss on a discounted sale. Amazon’s aged inventory surcharge of 0.50percubicfoot(0.10 per unit minimum) from 271-365 days, and 1.50percubicfoot(0.15 per unit minimum) past 365 days, accumulates monthly and compounds quickly. For a small item at 0.5 cubic feet already in the 271-365 day bracket, you are paying $0.25 per unit per month. If that item has been sitting at a price above the market for 9 months with no sale, the probability of a full-price sale in the next 30 days is low, and fees will keep accumulating. A sale below cost that recovers more than the fee total is the financially correct outcome.

3. How do I use repricing to liquidate slow-moving inventory?

Set a temporary minimum price in RepricerExpress equal to or slightly above your break-even price for the at-risk ASIN. Your break-even is COGS minus the total aged inventory surcharge you would otherwise pay. Then set your competitive target to match or undercut the lowest FBA offer rather than holding a spread above competitors. This puts your rule in clearance mode: it will price down to the liquidation floor to win the Buy Box and drive sell-through, without requiring you to set a specific sale price manually. Once the aged stock clears, restore your standard minimum price.

4. How do I calculate whether it’s worth selling at a loss to avoid LTFS?

Calculate total projected surcharge cost: multiply the per-unit monthly surcharge by the number of months you expect the stock to remain unsold. Compare this to the loss per unit on a discounted sale (current minimum price minus COGS). If projected surcharges exceed the loss per unit, the discounted sale recovers more. For items already past 365 days, the $1.50 per cubic foot surcharge rate means the math almost always favors immediate action. Use Amazon’s Inventory Age report to find the units, calculate the break-even minimum per ASIN, and adjust your RepricerExpress minimums accordingly before the next 15th assessment date.

5. What happens to my repricing rules after the clearance event?

The temporary minimum price you set for the clearance event stays in place until you change it. Once at-risk stock clears, navigate back to the ASIN-level minimum in RepricerExpress and restore your standard minimum using the full cost formula: (COGS + Fulfillment Cost) divided by (1 minus Referral Fee % minus Target Margin %). If you run PPC, add your average ACoS to the denominator. Also restore your competitive target from match/undercut mode back to whatever spread above the market your standard rules use.

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