Eshopbox now calculate storage fees based on your peak inventory level during the billing month, instead of pro-rata (average) basis.

This change ensures fair pricing, improves capacity planning, and helps us maintain consistent service quality during high-demand periods.

What does this mean

Eshopbox calculate your storage fee using the highest inventory level recorded at any point during the month

Example:

Why this change

1. Capacity is reserved for your peak - Warehouse space, bin allocation, and operational capacity are planned based on your maximum inventory level, not averages

2. Ensures consistent service during spikes - Peak-based pricing allows us to:

• Handle sudden inventory increases smoothly
• Maintain picking and dispatch SLAs
• Avoid warehouse congestion

3. Fair usage across all clients - This model ensures that clients are charged based on the maximum space and resources utilized, preventing misuse of temporary high-volume storage.

4. Simplifies billing and reconciliation

• No need to track daily inventory fluctuations
• Easy to verify: just check your highest inventory level for the month
• Reduces billing disputes

How is peak inventory calculated

Inventory is tracked continuously across all locations. The highest recorded total inventory level during the month is considered, includes:

• Sellable inventory
• Non-sellable inventory
• Inward in progress
• Outward in progress

How you can reconcile

Depending on your pricing model, you can reconcile storage fees using the following methods:

1. Per unit reconciliation

In the per-unit model, storage is charged based on the number of units at peak inventory level during a billing month.

Steps:

1. In the billing summary sheet, identify the peak short-term quantity and peak long-term quantity for the SKU
2. Verify the weight slab for the SKU
3. Match the Short-term rate per unit / long term rate per unit.
4. Apply the formula:

Storage Fee = Peak Quantity × Rate per unit × Weight Slab × Number of Days

Sample sheet: https://docs.google.com/spreadsheets/d/1RPDkLxnaThT2e-3yIJO4PoiBSzvxcpGz/edit?gid=838463735#gid=838463735

Key columns:

• peak short-term quantity / peak long-term quantity - Peak inventory (short-term / long-term)
• short-term rate per unit / long-term rate per unit - Storage rate per unit (short-term / long-term)
• weight slab - Chargeable weight slab for the SKU
• short-term charge / long-term charge - Calculated storage cost (short-term / long-term)
• total charge - Final storage fee for that SKU

2. Per cubic ft. reconciliation

In this model, storage is based on the space occupied (volume in cubic ft.) during a billing month.

Steps:

1. In the Day wise stock sheet, identify SKU dimensions in cubic ft. for the SKU
2. Match this with peak short-term quantity and peak long-term quantity in the billing summary sheet
3. Match this with Short-term rate per cubic ft. / long term rate per cubic ft. in the billing summary sheet.
4. Apply the formula:

Storage Fee = Volume (in cubic ft.) × Peak quantity × Rate per cubic ft. × Number of Days

Sample sheet:

https://docs.google.com/spreadsheets/d/1RPDkLxnaThT2e-3yIJO4PoiBSzvxcpGz/edit?gid=838463735#gid=838463735

Key columns:

• cubic ft. - SKU dimensions in cubic ft.
• peak short-term quantity / peak long-term quantity - Peak inventory (short-term / long-term)
• short-term rate per cubic ft. / long-term rate per cubic ft.- Storage rate per cubic ft. (short-term / long-term)
• short-term charge / long-term charge - Calculated storage cost (short-term / long-term)
• total charge - Final storage fee for that SKU

FAQs

Is this calculated per warehouse or overall?

Peak is calculated based on your total inventory per location.