Amazon’s FBA Inventory Age Report is a powerful tool for sellers to track the age of their inventory stored in Amazon’s Fulfillment Centers. By using this report, sellers can monitor how long their products have been sitting in Amazon’s warehouses, which can help optimize inventory management, prevent long-term storage fees, and improve overall profitability. Here’s how you can use the FBA Inventory Age Report effectively:

Step 1: Access the FBA Inventory Age Report

To get started, you’ll need to access the FBA Inventory Age Report through Amazon Seller Central:

1. Login to Amazon Seller Central: Go to Amazon Seller Central and log into your account.
2. Navigate to Reports: On the top menu, hover over the “Reports” tab.
3. Click on “Fulfillment”: From the dropdown menu, select “Fulfillment” under the “Inventory” section.
4. Choose “Inventory Age”: In the “Inventory” section, select “Inventory Age” from the list of reports available.
5. Download the Report: You can download the report in CSV format by clicking on the “Download” button.

The report will provide detailed information about how long your products have been stored in Amazon’s fulfillment centers. It typically includes the following columns:

• SKU: The unique identifier for your product.
• Product Name: The name of your product.
• Quantity: The amount of inventory stored in Amazon’s warehouses.
• Age of Inventory: The age of the inventory (how long it has been stored at the fulfillment center).
• Inventory Value: The total value of the inventory in each age category.
• Age Categories: Products are categorized into different age buckets, such as 0-30 days, 31-60 days, 61-90 days, and so on.

Step 2: Understand the Age Categories

The Inventory Age Report divides your inventory into various age buckets, each representing a period of time. Here’s how to interpret the age categories:

1. 0–30 Days: Items in this category are your most recently received inventory. These items are the least likely to incur long-term storage fees, and you’ll likely want to focus on keeping inventory in this category.
2. 31–60 Days: These items have been stored for over a month and are starting to age. You might want to monitor these products closely to avoid holding them too long, especially if they’re not selling quickly.
3. 61–90 Days: Inventory in this category has been stored for two to three months. At this point, items may be subject to long-term storage fees, so you should consider running promotions, discounts, or adjusting pricing to boost sales.
4. 91+ Days: Products in this category have been sitting in the warehouse for over three months. Long-term storage fees are charged for inventory that has been in the warehouse for more than 365 days, so it’s crucial to take action with these items, whether that’s running a sale, removing them, or returning them to avoid additional fees.

Step 3: Take Action Based on the Data

Once you have accessed and understood the report, here’s how to take action on the insights:

1. Identify Slow-Moving Products: Look for products that are in the 31–60 days and 61–90 days categories. These items may be at risk of incurring long-term storage fees, so it’s a good idea to consider strategies for increasing their sales.
   • Offer Discounts or Promotions: Run price promotions, bundle deals, or lightning deals to move older inventory.
   • Optimize Listings: Review your product listings for keywords, descriptions, and images to make them more attractive and increase conversion rates.
   • Use Advertising: Invest in Amazon Sponsored Products or other forms of advertising to boost visibility for slow-moving items.
2. Take Action on Overstayed Inventory: For items in the 91+ days category, you might want to consider more aggressive actions:
   • Remove Inventory: If the items aren’t likely to sell, consider removing them from Amazon’s warehouses. You can choose to have them returned to you or disposed of.
   • Liquidation: If returning the items isn’t feasible, you can explore liquidation options, such as selling to a liquidation company or offering steep discounts to move the stock.
   • Run Promotions: For older inventory, run clearance sales to incentivize purchases and avoid paying long-term storage fees.
3. Prevent Future Stockpiling: Use the data to prevent future inventory from accumulating. For example, you can use this report to forecast the sales velocity for different products and adjust your inventory restocking strategy accordingly. Maintaining an optimal stock level and regularly analyzing the age of your inventory helps prevent overstocking and unnecessary storage fees.
4. Take Advantage of FBA’s Inventory Performance Dashboard: In addition to the Inventory Age Report, Amazon provides an Inventory Performance Dashboard, which can offer insights into how well your inventory is performing across various metrics, including aging inventory. Monitoring this dashboard regularly can help you adjust your strategies before problems arise.

Step 4: Keep Track of Long-Term Storage Fees

Long-term storage fees are charged by Amazon for items that have been stored for over 365 days. These fees can significantly impact your profit margins, so keeping track of inventory that’s nearing that mark is essential. The FBA Inventory Age Report will help you spot these items in advance so you can take action and avoid these fees by either removing or discounting old inventory.

Amazon typically charges long-term storage fees twice a year (in February and August), so make sure to download and review the report in advance to take corrective actions.

Step 5: Use the Report for Better Inventory Forecasting

Analyzing the FBA Inventory Age Report regularly can provide valuable insights into your sales patterns, allowing you to improve inventory forecasting. By comparing how fast inventory turns over in different categories, you can better predict demand and make smarter purchasing decisions. This way, you can avoid overstocking products that might not sell quickly and also ensure you have enough inventory of your best-sellers.

Step 6: Use FBA’s Automated Tools for Inventory Management

While manually analyzing the report is important, Amazon also provides several automated tools to help streamline inventory management:

• Restock Inventory Tool: This tool helps you plan and automate your restocking process based on the data from your Inventory Age Report and other sales metrics.
• Automated Repricing: Repricing tools can help adjust prices dynamically for older inventory, helping you move stock more effectively.

Conclusion

The FBA Inventory Age Report is an indispensable tool for Amazon sellers looking to optimize inventory management, reduce long-term storage fees, and improve profitability. By understanding the report’s age categories and using the data to make informed decisions about pricing, promotions, and stock removal, sellers can maintain a healthy inventory turnover rate and avoid unnecessary costs. Regularly reviewing this report and using the insights to forecast demand and adjust strategies will keep your Amazon FBA business running smoothly and profitably.