Back to Blog

2026-01-20

Amazon Inventory Management: Avoiding Stockouts and Long-Term Storage Fees

How to manage Amazon FBA inventory to avoid stockouts, overstocking, and unnecessary storage fees.

Poor inventory management silently destroys Amazon profits. Stockouts tank your ranking. Overstocking racks up long-term storage fees. Here is how to find the balance.

Reorder Point Formula

Calculate your reorder point: (Average Daily Sales x Lead Time in Days) + Safety Stock. This tells you exactly when to reorder.

Lead Time Matters

Know your full lead time: manufacturing, shipping to Amazon, and FBA receiving. Most sellers underestimate receiving time, which can add 1 to 3 weeks during peak periods.

Long-Term Storage Fees

Amazon charges long-term storage fees for inventory sitting over 181 days. Monitor your aged inventory report monthly and create removal orders for slow movers before fees hit.

IPI Score

Your Inventory Performance Index score affects your storage limits. Keep it above 400 by reducing excess stock, improving sell-through rate, and fixing stranded inventory.

Need help optimising your Amazon operations? Get in touch for a free consultation.


Want Help With Your Amazon Account?

Book a free 15-minute call. No pressure, no obligation.

You Might Also Like

2027-02-10

The Flow Line Commerce Approach to E-Commerce Growth

How we help brands grow on Amazon and beyond. Our methodology and what makes us different....

Read More

2026-03-10

Ecommerce Product Photography on a Budget: DIY Guide for UK Sellers

How to take professional-looking product photos for your ecommerce listings without expensive equipment — smartphone tec...

Read More

2026-11-25

Handling Negative Amazon Reviews: A Professional Approach

Negative reviews happen. How you respond determines whether they damage or strengthen your brand....

Read More