Calculating storage costs

Brands are billed weekly for storage costs. However, in line with industry standards, storage costs are quoted monthly. In case this causes confusion, here’s an explanation.

Let’s say your monthly quoted storage cost is $0.99/cubic foot. Storage will be calculated weekly using the peak cubic consumption during the previous period (typically a week, but may vary depending upon how the month end falls), and normalizing by the period length relative to the calendar days in the month. If you deliver additional stock to your Warehut part way through a period, your storage charge for that period may be adjusted for the part week of additional cubic consumption. You’ll be billed for storage and SKU maintenance for the next period in advance.

Week 1: Lets say that your initial batch of stock arrives at Warehut on 10 March, which is a Wednesday. Your first weekly invoice (normally on a Friday) will include a storage charge for the week ending 12 March, for the 3 days 10, 11 and 12 March. Your invoice will also include a storage charge for the next 7 days of storage, to 19 March, based on your storage volume on 12 March, multiplied by 7 days.

Week 2 onwards: On 19 March, you’ll be billed storage for the week ending 26 March, based on the quantity of goods in stock on 19 March.

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If your total stock volume in storage at Warehut has never exceeded 10 cubic feet, you may be charged a flat monthly storage fee, to simplify your billing. You’ll be billed for storage and SKU maintenance for the next period in advance.

Your flat monthly storage fee is based on your maximum recorded stock volume over the past 12 months, rounded up to the next cubic foot (up to $9.90/month). For example, if your maximum total stock volume over the past year is 2.3 cubic feet of goods (2 small boxes) and you’re currently storing 1.9 cubic feet of goods, you would be charged for 3 cubic feet of storage per month ($2.97/month), regardless of whether or not your stock volume reduces over the course of the month as your goods sell.

Brands with more than three missed, delayed or failed payments may be charged for storage and SKU maintenance monthly in advance.

Contact your customer service rep for assistance!