Storage Charges

UPS warehouses your product in an ambient temperature warehouse.  We accurately maintain and track your inventory while your product is in our possession. Please keep the following in mind:

  • We base your Average Daily Storage on inventory measured at End of Day
  • Standard (Short-Term) is product stored less than six (6) months.
  • Long Term is product stored for longer than six (6) months. This is calculated from On Hand minus your Units Shipped within same 6 months.
  • Long Term is supplemental to the Standard (Short Term Storage). There is not a peak months factor for Standard or Long Term storage.  

 

Short Term Storage Calculation:

At the end of each day, the UPS eFulfillment Warehouse Management system (WMS) will sum up the number of units in each warehouse for each SKU. At the end of the month, it will add up the daily sum for each SKU and then divide by the calendar days in the month to come up with the average daily units stored for each SKU. The WMS will multiply the average daily units, the SKU size and the monthly rate of $0.92/cubic feet to get the monthly charge.

EXAMPLE:  The dimensions of XYZ are 6” X 6” X 12” = 432 cu in.

1728 cu in = 1 cu ft.

432 cu in/1728 cu in = 0.25 cu ft.

The average daily storage for one month for XYZ was 100.  

The storage calculation for XYZ is as follows: 100 X 0.25 cu ft X $0.92 = $23.

 

Long Term Storage Calculations:

The Long Term Storage Fees are charged when product for a single merchant account is stored in the network for more than six (6) months. The Long Term Storage Fees are calculated at the end of each month for the previous six (6) months.

UPS eFulfillment will measure the On Hand inventory units, collectively for all SKUs, at the beginning of month one (1) and subtract the total of units shipped, collectively for all SKUs, in months one (1) through six (6).

  • • If the collective units shipped over the six (6) months is greater than the collective inventory from the beginning of month (1), Long Term Storage Fees will NOT be charged,
  • • If the collective units shipped over the six (6) months is less than the collective inventory from the beginning of month one (1), Long Term Storage Fees will be charged. The unit difference is the Long Term Storage Units.

The Long Term Storage Fees will be calculated based on Long Term Storage Units, the Cu Ft dimensions of the specific Long Term Storage SKUs, and the Long Term Storage fee.

The Long Term Storage SKUs will be determined by comparing the month one (1) On Hand inventory of each SKU compared to each SKU’s units shipped over the same six (6) months as above. The weighted average of the Cu Ft per unit will be calculated based the inventory at the end of month six (6).

Long Term Storage Units
x
Weighted Average Cu Ft per Long Term Storage Unit
x
Long Term Storage rate
=
Monthly Long Term Storage Fee

The Long Term Storage Units are capped by the Short Term Storage Units for the respective SKUs and billing period.

    Scenario #1  Scenario #2 
  Collective Inventory at Beginning of Month 1  1,000 1,000
minus (-)  Collective Units Shipped Months 1 thru 6 900 1,100
equals (=) Long Term Storage Units 100 0
  Current Month Storage Units for Long Term SKUs 90 0
lesser of previous two

Billed Long Term Storage Units
(lesser of Long Term & Current Units)

90 0
times (x) Weighted Average Cu Ft per Long Term Storage Unit 0.25 0.25
times (x) Long Term Storage Rate $4.90 $4.90
equals (=) Long Term Storage Fee $110.25 $0.00
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