Storage Fees Explained

Storage Fees Explained

Storage fees are charged for inventory occupying space in the YouParcel warehouse. Managing your inventory levels efficiently is the best way to control storage costs.

How Storage Is Calculated

Storage is billed based on the space your inventory occupies, measured at the pallet position or cubic foot level depending on your agreement. A monthly snapshot of your inventory is taken on a defined date to calculate the storage charge for that period.

Long-Term Storage

Inventory that has been in the warehouse for more than 180 days may be subject to long-term storage surcharges. YouParcel will notify you when inventory approaches this threshold. Options to avoid long-term storage fees include running promotions to sell through slow-moving SKUs, returning inventory to yourself, or arranging liquidation.

Tips to Minimize Storage Costs

  • Send replenishment shipments in quantities aligned with your order velocity. Avoid sending 6 months of stock when you can predict 60-day demand.
  • Review inventory aging reports regularly and act on slow-moving SKUs before they hit long-term thresholds.
  • Consolidate fragmented pallet positions where possible by requesting a consolidation service.

Requesting an Inventory Aging Report

Submit a ticket to request an inventory aging report at any time. The report shows units on hand by SKU with the date each lot was received, helping you identify which items are at risk of long-term fees.

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