To access Benchmarking, navigate to Analytics > Benchmarking
What is a long term storage fee ratio?
Your long term storage fee ratio measures your long term storage fees as a percentage of your revenue. A lower percentage means less of your revenue is spent on long term storage fees.
How is my fee ratio calculated?
Your fee ratio is calculated as:
Long Term Storage Fees / Total Revenue
For example, if your long term storage fees in the period were 25 and your revenue was 1,000, your fee ratio would be:
25 / 1,000 = 0.025
Your long term storage fee ratio is presented as a percentage, so 0.025 becomes 2.5%.
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):
Prevention (stop stock from aging out)
Set aging gates with hard inbound stops
Define gates at 90 / 120 / 150 / 170 days in FC. At 120d, freeze inbound; at 150d, require a written plan (price/ad/bundle); at 170d, default to removal/liquidation. Make inbound ASN rules in your WMS/3PL to block shipments for SKUs past the gate.Replenish to Days-of-Cover, not pallets
Tie POs to target DOH by velocity band (e.g., A: 30–40d, B: 20–30d, C: 10–15d) with auto-throttle when on-hand > 1.5× target. This prevents today’s overfill becoming tomorrow’s LTSF.
Acceleration (sell before the fee hits)
Aged-inventory sprint playbooks by SKU class
At 120–150d, auto-apply a 3-lever sprint:
Pricing: step discounts (e.g., −5% at 120d, −10% at 150d).
Demand: short-burst ads to exact terms (sponsor only profitable queries).
Offer: coupon or bundle add-on to raise conversion.
Require a sell-through lift (e.g., >1.5× baseline) within 14 days or escalate to exit.
Bundle/kitting to reset demand
Create fast-moving 2-packs/variety kits that consume aged singles. Aim for bundles that keep you in the same or cheaper fee tier while increasing ASP and throughput.
Exit (cheapest way out before the penalty)
Removal vs. keep: run the LTSF math
For any SKU ≥150d, compare:
Keep = Expected 60-day gross profit − (60-day storage + aged surcharges)
Remove = Removal fee + 3PL inbound + clearance discount loss
If Remove < Keep (or Keep < 0), pull it. Make this a weekly report with an auto decision.Use marketplace programs deliberately
Where available, enroll aged units into Outlet/Deals, Liquidations, or Grade & Resell/Refurb before the LTSF date. Prioritize the option with the highest net recovery and the fastest clock.Switch fulfillment mode for slow/seasonal
Move borderline SKUs from FBA/WFS to FBM via your 3PL just before LTSF. Keep the listing alive, but stop paying premium storage while you work the price/ads.
Hygiene (silent LTSF killers)
Weekly “stranded & suppressed” purge
Aged units become expensive fast if they’re unsellable. Every Friday: fix suppressed listings, merge duplicates (policy-compliant), resolve hazmat flags, and process “unsellable” to refurb/donation programs to stop the LTSF clock.Supplier contracts with RTV/buy-back
Negotiate return-to-vendor windows (90–120 days) or exchange credits for slow movers. Even a 10–15% restocking fee can beat months of LTSF + markdowns.
Governance (make it automatic)
SLA the timeline
Publish a 1-page SOP with non-negotiables:
Day 90: Pricing/ads test live.
Day 120: Inbound freeze, bundle plan created.
Day 150: If lift < target, schedule removal/liquidation.
Day 170: Execute exit; zero units cross LTSF date.
Owner: Inventory Manager. Review: weekly aged-stock stand-up (15 minutes, dashboard-driven).
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].