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How are storage fees computed?

Parker White
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Storage Fees

Deliverr charges a storage fee for each SKU with units in inventory in Deliverr's fulfillment network.

To compute a SKU's storage fee, you need the following:

  • Unit's length, width, and height
  • Number of units of the SKU in inventory
  • Month
  • Time in inventory

Deliverr's storage fees depend on all these factors. Beginning March 1st, 2020, fees start at the following rates:

  • From January through September, the standard fee is $0.72 / cubic foot / 30 days.
  • From October through December, the standard fee is $2.40 / cubic foot / 30 days.

 

Long-Term Storage Fees

Starting on February 1st, 2021 Deliverr will charge long-term storage fees for units in inventory for more than 365 days. 

For units that are in inventory for more than 365 days, the future long-term storage fees will be as follows:

  • The per cubic foot rate is $6.90 / cubic foot / 30 days.
  • The per unit minimum is $0.15 / unit.

To see which items are affected, go to sellerportal.deliverr.com/reports and create an 'Inventory - Units in Long Term Storage’ report. Items that are non-zero in the last column, 'Units >= 365 days old," will be charged at a different rate.

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We encourage you to create promotions for these items to clear out inventory, or if desired create a removal order to send those items to you. 

Notes:

  • Long term storage fees will be stopped when the shipment for removal is created / requested.
  • FIFO (first in, first out)
    • When accounting for storage fees, Deliverr does operate on a FIFO basis. This means that we decrement counts based on the oldest units first. This will move you out of the long term storage tier faster and decrease the size of your bill.
    • When considering actual fulfilled units for a customer order or a removal order, Deliverr does not do FIFO. We choose which actual unit to fulfill a given order based on which warehouse location plus carrier that we believe can best fulfill the service level of that particular order. Within a given warehouse, there is no guarantee which item will be fulfilled.

 

 

Fee Calculation

Unit Volume

To calculate the unit volume for a SKU, take the length, width, and height (in inches) of a single unit of the SKU. Multiply length x width x height to get the volume in cubic inches. Convert this volume to cubic feet by dividing by 1728.

Round this volume up to the nearest hundredth to get the value on which Deliverr computes the storage fee.

Example: We have a SKU with units of dimensions 20" x 16" x 8". The volume in inches is 20 * 16 * 8 = 2560 cubic inches. In cubic feet, this volume is 2560 / 1728 = ~1.48148 cubic feet. We round this value up to 1.49 cubic feet. This is the volume on which Deliverr will compute the storage fee.

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