Storage Rules & Fees

Purpose

This guide explains how eFulfillment Service (EFS) stores, manages, and bills for your inventory. It covers warehouse storage standards, organization methods, and how storage fees are calculated.

Table of Contents

1. How Inventory Is Stored
2. FIFO Inventory Rotation
3. Product Labeling Rules
4. Inventory Organization
5. Storage Fee Overview
6. Long-Term Storage
7. Inventory Counts & Audits
8. Accessing Storage Reports
     8a. Advance Shipping Notice (ASN)
9. Storage Optimization Tips
     9a. Product Preparation Guidelines
10. Important Reminders

1. How Inventory Is Stored

All products received at EFS are scanned by the barcode, and assigned to specific storage locations within the warehouse.

Storage types are determined by the size and quantity of your products:

Storage Type Description Common Use
Bin Storage Small, individual product units stored in shelf bins. Jewelry, cosmetics, small accessories.
Shelf Storage Medium-sized items stored on warehouse shelving. Books, apparel, boxed goods.
Pallet Storage Full cartons or bulk cases stored on pallets. High-volume SKUs, wholesale cartons, or large products.

Your inventory may use multiple storage types depending on product mix and volume.

2. FIFO Inventory Rotation

EFS follows a First In, First Out (FIFO) inventory system by default. This means the oldest received stock is shipped first, ensuring product freshness and reducing long-term storage buildup.

For Products with Expiration Dates:

  • Must be clearly visible on outer packaging
  • Minimum 180 days from expiration at time of receipt
  • Lot numbers must be scannable if tracking is required
  • Items with shorter shelf life will be placed in “Hurt” category until client approval
  • Expiration dates must be printed on the master carton in large, readable font (preferably 36-point or larger)
  • FEFO (First Expired, First Out) available upon request

If your product requires FEFO (First Expired, First Out) handling, contact your Client Care Specialist to request this service.

3. Product Labeling Requirements

Every item must have a visible, scannable barcode that matches its SKU in the Fulfillment Control Panel (FCP).

Labeling Requirements:

  • Use manufacturer barcodes or EFS-generated labels
  • Remove duplicate or conflicting barcodes
  • Bundle kits or multi-packs in sealed, labeled packaging
  • Apply SKU labels before sending products to the warehouse
  • Barcodes must be scannable without opening or unwrapping packaged items

Improperly labeled products may be held until corrected, which can delay order fulfillment.

Accepted Barcode Formats:

EFS scanners support the following barcode types:

  • Code 128, Code 11, Code 39, Code 39 Full ASCII, Code 93
  • ITF (2 of 5 Interleaved)
  • GS1-128 (UCC-EAN128), GTIN
  • EAN-8, EAN-13, EAN-14, EAN-8 Composite, EAN-13 Composite
  • UPC-A, UPC-E, UPC-A Composite, UPC-E Composite
  • PDF 417, Micro QR Code, QR Code, QR Code Mobile, Data Matrix

Creating Your Own Barcode Labels:

If you need to create barcode labels yourself, refer to the support article “How Do I Create My Own Barcode SKU Label?” or use the following recommended tool:

Important: If products arrive without scannable barcodes, EFS will apply labels at an additional cost ($22.50 setup fee per job + $0.25 per label).

4. Inventory Organization

Inventory is automatically organized based on:

  • SKU and product type
  • Size and weight
  • Sales frequency

High-volume products are stored closer to fulfillment lines for faster picking, while slow-moving or bulk items are placed in deeper storage zones. You can view all inventory quantities by SKU under Quick Links → View Items in your FCP.

5. Storage Fee Overview

Storage fees are billed monthly and depend on your product volume and space usage.

Rates are calculated automatically by EFS’s warehouse management system and appear on your weekly invoice summary. If you need current pricing details, contact [email protected] or your Client Care Specialist.

5a. Pallet Standards

Acceptable pallets must meet the following criteria:

  • Standard size: 40″ wide x 48″ deep
  • Maximum height: 54″ (taller pallets will be restacked)
  • Sturdy construction with intact slats and supports
  • Wood pallets only (no composite/sawdust-compressed blocks or plastic pallets)

Situations requiring replacement:

  • Two or more broken, split, or missing top or bottom slats
  • Damaged or broken main supports (the three perpendicular heavier studs)
  • Pallets using composite or sawdust-compressed blocks as separators
  • Non-standard dimensions (not 40″ x 48″)
  • Plastic pallets
  • Pallets exceeding 54″ in height (when safety requires reduction to two shorter pallets)
  • Any pallet showing structural weakness that could present safety issues

5b. Non-Compliance Fees

The following fees can apply when shipments don’t meet EFS requirements:

  • No ASN submitted before arrival
  • Missing packing list (not included with shipment or sent in advance)
  • New SKUs not added to FCP before arrival
  • Boxes exceeding 50 lbs (OSHA safety limit)
  • Improper address format (must include “c/o EFS Receiving Department”)
  • Unscheduled container delivery (containers must be scheduled via ASN calendar link)

Hold Fees (items that cannot be processed within 72 hours)

  • Minimum of one pallet; individual items assessed standard storage fees

Quality Sort Required:

  • Applied when shipments arrive with damaged items or mixed SKUs in the same box
  • Client notification provided before processing

Pallet Handling Fees:

  • For EFS-provided pallets when shipments arrive with 15+ unpalletized boxes
  • For hand-unloading shipments with 15+ boxes

For up to date fees or pricing, contact [email protected] or your Client Care Specialist.

6. Damaged/Defective Inventory (‘Hurt bin”)

Items placed in hurt bins include:

  • Damaged items from customer returns
  • Defective items from new shipments
  • Items that cannot be sold in current condition

Hurt Bin Management Process:

  • Monthly newsletter sent on the 15th listing all hurt inventory by SKU
  • Newsletters sent to email address configured for return notifications (Client Info > Manage Email)
  • Client has 30 days to request return or disposal
  • All hurt bins cleared on the 30th of each month
  • Automatic disposal after 30 days if no instructions received

How to View Hurt Inventory:

  1. Go to Reports → Inventory Spreadsheet
  2. Select “Show only SKUs with hurt inventory greater than zero”
  3. Or go to Client Info → View Inventory and filter by hurt status

Important: Monitor your hurt bin proactively. Check your dashboard rather than requesting staff assistance. Submit disposal or return instructions via the Zendesk ticket system before the 30-day deadline.

7. Inventory Counts & Audits

Regular Cycle Counts

EFS will perform a yearly inventory count upon your request to maintain accuracy. Typical inventory accuracy rate: 95-97%

If a discrepancy occurs, EFS will investigate through:

  • Receiving and shipment logs
  • Location history

Updates are reflected automatically in your FCP once resolved. Email notifications are sent when inventory is updated.

Client-Requested Audits

Clients may also request additional full inventory audits by contacting the Support Team, these are billed at the warehouse rate of $22.50 per ½ hour.

Audit Details:

  • Available upon request via Support Team
  • Fees may apply for audits outside standard schedules
  • Submit request through Zendesk ticket system
  • Allow 3-5 business days for completion

8. Accessing Storage Reports

You can review your storage activity in the Fulfillment Control Panel by:

1. Going to Reports → Inventory Spreadsheet

2. Exporting results as a spreadsheet for reconciliation or cost analysis

* Show only SKUs with good inventory greater than 0
* Show only SKUs with hurt inventory greater than 0

* Exclude memo SKUs 

This report lists all inbound and outbound movements, along with current storage totals.

8a. Advance Shipping Notice (ASN)

All inbound shipments require an ASN before arrival.

How to Submit an ASN:

  • Access via link on your FCP dashboard: Client Info > Quick Links
  • Include tracking numbers and carrier information
  • Attach packing list to ASN or submit via support ticket
  • For containers or 24+ pallet shipments: Schedule delivery via the calendar link in the ASN

ASN Requirements:

  • Submit one ASN per shipment (even if multiple shipments arrive same day)
  • Complete when inventory ships or is preparing to ship
  • If information is unavailable (e.g., tracking number), fill in available details and edit later
  • Email copy to yourself for easy editing access

Missing ASNs result in $50 non-compliance fee and processing delays.

Container and Large Shipment Scheduling:

  • Required for: Sea freight containers and shipments with 24+ pallets
  • Use the company name registered with EFS (not supplier/manufacturer/freight carrier name)
  • Supplier/manufacturer should contact EFS directly:
    • Call toll-free: 1-866-922-6783, press “2” for Customer Service
    • Contact Client Care Account Rep directly
    • Do not use Zendesk (reserved for EFS clients only)

9. Storage Optimization Tips

Cost-Saving Strategies:

  • Delete unused SKUs to avoid bin minimums ($0.45-$0.25 per bin)
  • Consolidate SKUs and reduce duplicates
  • Use kits or bundles for slow-moving inventory
  • Schedule regular inventory reviews in your FCP
  • Set reorder points to maintain ideal stock levels
  • Remove discontinued products promptly to free up space
  • Review hurt inventory monthly (notifications sent on 15th)
  • Coordinate large shipments to avoid overflow fees

Inventory Planning:

  • Consider case packs vs. individual units for high-volume items
  • Monitor slow-moving inventory for potential removal
  • Use FCP reports to track storage costs by SKU
  • Plan for seasonal fluctuations in inventory levels

Consistent organization helps lower storage costs and keeps your fulfillment process running efficiently.

9a. Product Preparation Guidelines

Different product types require specific preparation before shipping to EFS:

Product Category Packaging Requirements Labeling Requirements Examples
Textiles/Soilable Items • Polybag or protective wrapper required • Scannable barcode label Apparel, plush items, fabrics
Powder/Pellets/Granular & Small Items • Retail packaging acceptable
• Small items (longest side < 3″) need extra protection		 • Scannable barcode label Baby products, exposed toys, vitamins, nutraceuticals, skin care products
Adult Products • Black or opaque polybag/wrapper required
• Discreet packaging		 • Scannable barcode label Items with nudity/profanity
Products with Expiration Dates • Protective packaging/shrinkwrap
• 180+ days from expiration at receipt
• Expiration on master carton (36pt font)		 • Scannable barcode label
• Lot #/expiration date must be visible		 Foods, beverages, vitamins, products packaged with food
Liquids (>8 oz, no double seal) • Tape over twist tops recommended
• Suitable for plastic bottles		 • Scannable barcode label Plastic bottles
Fragile/Glass Items • Bubble wrap required
• Box or polybag required		 • Scannable barcode label China, dishware, picture frames, clocks, mirrors, liquids in glass bottles/jars
Sharp/Pointed Items • Bubble wrap required
• Box required		 • Scannable barcode label Scissors, tools, metal materials
Bundled Products • Box, polybag, or shrink wrap
• Pre-bundled before arrival		 • Scannable barcode on exterior Multi-packs, kits

Key Notes:

  • All products require a scannable barcode label unless otherwise specified
  • Non-liquid items without expiration dates generally have the most flexible requirements

Important Notes:

  • Perishable items are not allowed in warehouse
  • Non-perishable items must be lot-controlled with 180+ days until expiration
  • If items cannot be pre-prepared, EFS can prepare them at receiving for a fee.
  • See complete Receiving Guide for detailed requirements by category

10. Important Reminders

✓ All shipments require ASN before arrival
 ✓ Include packing list with every shipment
 ✓ Products must have scannable barcodes
 ✓ Schedule containers/24+ pallets via calendar link
 ✓ Box weight limit: 50 lbs (OSHA requirement)
 ✓ Review hurt bin monthly (notifications sent 15th)
 ✓ Delete unused SKUs to reduce storage costs
 ✓ Maintain 180+ days until expiration for dated products
 ✓ Use proper address format:

[Your Company Name]
c/o EFS Receiving Department
807 Airport Access Rd., Unit D
Traverse City, MI 49686

Support: Submit tickets via Zendesk system or contact [email protected]

Next Steps and Additional Resources

Continue to: Inventory Alerts & Reorder Points Guide. That guide explains how to set up low-stock alerts and reorder thresholds within your Fulfillment Control Panel to prevent stockouts.