Storage Costs Definition

Storage costs are associated with storing products in a warehouse or other storage facility. These storage expenses may include a storage fee, a charge for using the storage space, utilities, insurance, and labour.

Storage costs are incurred by retailers, manufacturers, and other businesses that need to store their inventory for some time.
In some cases, businesses may incur extra costs, such as demurrage fees, if their products are stored longer than the agreed-upon timeframe.

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