February 5, 2024

How Are Storage Fees Computed?

Storage Fees

Yaca charges a storage fee for each SKU with units in inventory in Yaca’s fulfillment network.

To compute a SKU’s storage fee, the following is needed:

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

Yaca’s storage fees depend on all the above factors. Storage fees could start around the following rates:

  • From January through September, the standard fee is $0.0251 per cubic foot, per day
  • This is equivalent to $0.75 per cubic foot over 30 days
  • From October through December, the standard fee is $0.050 per cubic foot, per day
  • This is equivalent to $1.50 per cubic foot over 30 days

Long-Term Storage Fees

Yaca charges long-term storage fees for units in inventory for more than 150 days.

For units that are in inventory for more than 150 days, the future long-term storage fees will be as follows:

  • The standard fee is $0.10 per cubic foot, per day
  • This is equivalent to $3.00 per cubic foot over 30 days
  • The per unit minimum is $0.15 per unit, per day

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 a warehouse decrements those units in the inventory, soon after a removal is created in the Customer Portal or via email
  • FIFO (first in, first out)
  • When accounting for storage fees, Yaca does operate on a FIFO basis. This means that we decrement counts based on oldest units first. This will move you out of long-term storage tier faster and decrease the size of your bill.
  • When considering actual fulfilled units for a customer order or removal order, Yaca 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 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, 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 1728.

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

Example:

We have a SKU with units of dimensions 20″ x 16″ x 8″. The volume in inches is 20168 = 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 Yaca will compute the storage fee.