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Monthly storage fee promotion for maintaining target inventory

By maintaining target inventory levels of eligible, popular standard-size products, you will get a monthly storage fee discount of 50% to 75%. Sufficient inventory is critical for offering faster delivery speeds on fast-moving products because it allows Amazon to place units close to customers.

The promotion began June 1, 2019, and will run through January 31, 2020.

How the promotion works

The discount involves three steps:


  1. Determine your eligible products

    Products can become eligible in two ways:

    • Unit sales eligibility. Products are eligible when 60 or more units for a standard-size FNSKU are sold in the month that the discount is earned. For example, when an FNSKU sells at least 60 units during July, it becomes eligible for discounted storage fees in July.

    OR

    • Automatic eligibility. Each month, Amazon flags automatically eligible products in the Restock Report. For example, July’s newly eligible FNSKUs are noted in the Restock Report in June. The report includes FNSKU eligibility for the current and following month, along with target inventory levels for both months.
    Note: Oversize, special-oversize, and items that can be sold only through the Dangerous Goods program are not eligible for the promotion. For more information, visit Product size tiers.
  2. Qualify for the discount by maintaining a target inventory range
    How unit sales eligible products qualify How automatically eligible products qualify

    For products that meet the unit sales criteria, you must maintain 4 to 8 weeks of inventory coverage for 21 days of the month.

    Your weeks of inventory coverage target is based on your average daily units sold of the FNSKU in a given month.

    For example, if 62 units of an FNSKU are shipped from FBA in July, your average daily shipped units is two per day. To qualify for the discount in July, you would therefore have to maintain inventory coverage within these thresholds:

    • 4 weeks minimum = 56 units (2 units a day x 7 days a week x 4 weeks)
    • 8 weeks maximum = 112 units (2 units a day x 7 days a week x 8 weeks)

    Based on this example, your inventory coverage of 56 to 112 units for at least 21 days in the month means that you would earn the discount. The Customer Shipment Sales report tracks your daily shipments for FNSKUs.

    For products that are flagged as automatically eligible in the Restock Report (regardless of whether they meet the unit sales criteria), you must maintain a target inventory coverage range for 21 days of the month.

    To qualify, you can either:

    • Follow the recommended inventory coverage target range in the Restock Report to get the discount

    OR

    • Maintain 4 to 8 weeks of inventory coverage (see the adjacent column How unit sales eligible products qualify in this table for details)

    For example, if the Restock Report lists a target inventory range of 60 to 120 units for an FNSKU, the product would qualify for the discount if your coverage meets this target for at least 21 days in a month. The ranges in the report are based on Amazon forecasts.

    The list of automatically eligible products is reset each month based on historical and forecasted sales, taking seasons into account.

  3. The discount is applied to monthly storage fees

    The discount will be reflected in your monthly storage fees when they are billed the following month. Detailed reporting on the FNSKUs that earned the discount can be found in the Monthly Storage Fees report.

Monthly storage fee comparison

Monthly storage fees for eligible products during the promotion, which runs from June 1, 2019, through January 31, 2020:

Month Standard-size (units not qualified for the promotion) Standard-size (units qualified for the promotion)

June - September 2019
January 2020

$0.69 per cubic foot $0.17 per cubic foot
October - December 2019 $2.40 per cubic foot $1.20 per cubic foot

Frequently asked questions

Are the thresholds for weeks of inventory coverage based on the previous or current month?

We use the current month’s sales velocity and inventory coverage you have held to determine whether you maintained 4 to 8 weeks of coverage for you products. For example, we use the end-of-month sales for July to calculate thresholds for July.

Does my product meet the unit sales eligibility criteria if I sell less than 60 units in a month but have 4 to 8 weeks of inventory coverage?

No, only eligible products can qualify for the discount. While having sufficient inventory of popular products helps us ensure faster delivery times, these levels aren’t as beneficial on slower-moving products.

Is there a limit on the discount that I can earn in a month?

There is no limit. You can earn a discount on all of your eligible standard-size products that meet qualification requirements in a given month.

How can I track progress toward my discount?

You can track your progress with the Daily Inventory History report, and for daily shipments the Customer Shipment Sales report. For products flagged as automatically eligible in the Restock Report, the Inventory Level Monitor on Restock Inventory helps you see if an FNKU’s inventory level is on target. If the unit count is green, your inventory level for the FNSKU is on target for the current month. If the unit count is red or yellow, the FNSKU currently has too much or too little inventory to qualify.

The Inventory Level Monitor should be used for estimated inventory levels only. End-of-day snapshots of inventory are used to evaluate qualification requirements, and not all inventory statuses are displayed in the monitor.

If your product does not show an Inventory Level Monitor, it is not flagged as eligible for the current month.

Can I see a list of automatically eligible products that I’m not selling?

No, your Restock Report contains only products that you have sold in the past.

Am I required to hold the target inventory levels for my products to receive Prime free one-day shipping?

While holding sufficient inventory increases the likelihood that a customer will be offered Prime free one-day shipping, it is not required.

What inventory counts toward my inventory coverage to qualify for the promotion?

All inventory in the Amazon fulfillment network counts towards your inventory coverage unless it is in one of the following dispositions: customer damaged, distributor damaged, carrier damaged, and warehouse damaged. Inventory is considered in the Amazon fulfillment network once it has completed the receiving process. Inventory in reserved statuses do count towards your inventory levels.

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