To access Benchmarking, navigate to Analytics > Benchmarking
What is a long term vs. short term storage fee ratio?
Your long term vs. short term storage fee ratio measures your long term storage fees as a percentage of your short term storage fees. A lower percentage means less of your revenue is spent on storage fees. A higher percentage means you're spending more on long terms storage fees.
How is my fee ratio calculated?
Your fee ratio is calculated as:
Long Term Storage Fees / Total Storage Fees
For example, if your long term storage fees in the period were 25 and your total storage fees were 100, your fee ratio would be:
25 / 100 = 0.25
Your long term vs. short term storage fee ratio is presented as a percentage, so 0.25 becomes 25%.
How can I compare my fee ratio to industry averages?
Link My Books benchmarking feature allows you to compare your fee ratios with other businesses of similar size selling on the same channel.
To access Benchmarking, navigate to Analytics > Benchmarking
On the bell curve, you will see the median, lower quartile and upper quartile figures. These represent how other businesses in your cohort are performing.
Your result is shown in comparison to these industry averages and is placed into one of the following 4 quartiles:
Bottom 25%
Lower 50%
Upper 50%
Top 25%
A lower ratio is better as this means you're spending less on long term storage fees, which are more expensive.
Tips to improve your fee ratio
Ultimately to lower your ratio you need to decrease your spending on long term storage fees.
Some tips on how to do that are (written by Chat GPT):
Inventory & Replenishment
Forecast to a target “days of cover” (not “as much as we can send”)
Set a SKU-level target (e.g., 30–45 days for fast movers; lower for slow/seasonal). Use a basic ROP formula so you don’t overfill FCs:
Reorder Point = (Avg Daily Sales × Lead Time Days) + Safety Stock.
Audit monthly; throttle SKUs consistently above target.Ship little & often via a 3PL buffer
Stage bulk stock at a low-cost 3PL and drip small FBA/WFS replenishments. This cuts cubic feet sitting in marketplace FCs and protects you from restock cap surprises.
Move Aging Stock Fast
Run “Aged Inventory Sprints” at fixed age thresholds
Before aged-inventory surcharges kick in (e.g., ~6 months+), trigger automatic actions: temporary price drops, coupons, sponsored ads, and listing refresh. Measure 90-day sell-through and require a lift before the next shipment.Choose removal/liquidation when the math says so
Compare (next 90 days’ expected storage & aged surcharges) vs removal/liquidation fees and net margin if sold elsewhere. If storage+surcharges > removal+resale margin, pull the stock.
Cost & Size Engineering
Right-size packaging to drop a size tier
A small reduction in dimensions can move a SKU into a cheaper size band, cutting both storage and pick/pack fees. Test polybags or thinner cartons; aim for the biggest dimensional breakpoints first.Split fulfillment modes by velocity
Keep your A-SKUs in FBA/WFS for Prime-speed conversion. List slow movers as FBM/3PL (or only FBM off-season). You still show availability without paying premium storage for dust collectors.
Ops Hygiene (Quiet Fee Killers)
Kill stranded/unsellable inventory weekly
Stranded, suppressed, or hazmat-flagged SKUs rack up storage while not selling. Add a Friday checklist: fix listing errors, reconcile “unsellable,” and convert returns to refurb/used-like-new if allowed.Enforce restock guards at the inbound stage
Block inbound if:
DOH (Days of Inventory on Hand) > target × 1.5, or
90-day sell-through < threshold (e.g., 1.5×), or
SKU is within 30–60 days of aged-fee trigger.
This prevents well-meaning over-shipments.
Portfolio Strategy
Rationalize the long tail (ABC + contribution)
Quarterly, cut or pause C-SKUs with low contribution margin after fees and ads. Replace with higher-ASP bundles/variants that move volume faster per cubic foot.Bundle & seasonally throttle
Use kitting/virtual bundles to lift ASP and velocity (fewer units idling). For seasonal items, push hard only inside the demand window; off-season, switch to FBM or 3PL staging and halt FBA sends.
Remember to regularly reassess your strategy and stay informed about changes in the terms and conditions of the online marketplaces you use to ensure you're optimising your cost structure effectively.
If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].