How Is My Storage Bill Calculated?

Wouldn’t it be great if there was a simple bill for storage? Well we have that!

Unlike the constant extra charges for storage with Amazon, (fourth quarter increase, long term storage, etc), Freight only charges a fixed rate per cubic foot per 30 day cycle (month), all year long.

Even better is that you are only charged for the days in storage rather than by the month.

When is storage billed?

Starting in Feb 2022, Freight is moving to a staged billing cycle in order to reduce the impact to your business all at once at the first of the month as it has been in the past. Below is the billing schedule. This is great news for you, as it gives you time in between payments to collect additional Amazon payouts or further adjust your cashflow more steadily.

UK - Feb 1-10, Billed on Feb 11; From March on, billed on the 11th each month

US - Feb 1-20, Billed on Feb 21; From March on, billed on the 21st each month

CA and AU - Feb 1-28, Billed on Mar 1; Remains on the 1st of each month

What can cause my bill to be different between months?

Your bill may fluctuate month to month because of:

• CBF changes mid billing cycle

• Differences in the amount of days in the month (here is looking at you February)

• Exchange rate if you are billed in GBP

Charging you for only what you use makes things look messy even though they still follow the simple $1.15 per CBF per month (30 days).

Maybe you are saying please show me what you mean…

To ensure accurate measurements your storage fees are based on the daily average volume (measured in cubic feet) for the space your inventory occupies in our warehouses. 

That means that if you have an average of 1 CBF of product for a standard month of 30 days you would be billed the cost for a single CBF for the storage that month.

So for example: 10 CBF stored for 30 days -> Average of 10 CBF stored each day for 30 days (Quantity 10.00CBF at a cost of $0.95) -> $9.50

But what if you didn’t have 10 CBF for all 30 days? Let’s say you had 10 CBF stored for the month of February. What would that look like?

Using our example cost above 10 CBF stored for 28 days -> Average of 10 CBF stored each day for 28 days (Quantity 9.34CBF at $0.95) -> $8.87

But what if you disposed of stock or did a replenishment order?

Let’s say you had the following storage:
10 CBF stored for 15 days and only 5 CBF stored for another 15 days -> Average of 0.25 CBF stored each day for 30 days (Quantity 7.48CBF at $0.95)  -> $7.11

Now that we understand the basics of how it works, let's look at what your invoice will look like. Rather than write out all of the changes in a long paragraph which would get confusing. We have opted for using the term quantity. The quantity is your average CBF per the amount of days of storage for the month. 

Here is what your invoice would look like (with only 3 days) without using quantity:

Open

Pretty intense right? So to save you and us from doing a ton of manual math we put all of these details into quantity.

So your invoice now looks like this:

Open

Charging on a daily use rate saves you money and mirrors how the industry operates (including how Amazon charges storage).

Definitions for the categories on your bill are as follows:

Quantity is the Average Storage Volume (measured in Cubic Foot)

Unit Price is the storage price charged by the month for your CBF. As mentioned earlier the current storage rate can be found in the price link above (if you are billed in GBP this rate will change with the exchange rate)