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Update to low-inventory-level fee

by News_Amazon

In December 2023, we announced our plans to launch a low-inventory-level fee to improve inventory health and maintain sufficient inventory levels. Having sufficient inventory that is spread across our fulfillment network ensures that we have enough product close to customers so we can deliver it faster. We’ve seen that when products have sufficient inventory levels they will, on average, generate measurably more sales.

On April 1, 2024, the FBA low-inventory-level fee went into effect, and we announced any low-inventory-level fees charged in April would be credited back. We’re extending this transition period through May 14. By May 31, you’ll be credited back for any low-inventory-level fees incurred between April 1 and May 14. We hope this transition period has helped you get more familiar with the fee and fee management tools. We've seen that the additional time has enabled even more sellers to achieve healthy inventory levels and avoid this fee entirely.

We’ve continued to listen to your feedback and are making three additional changes that are designed to better target these low-inventory-level fees to where you have the most control to ensure healthy inventory:

  1. Because of the greater unpredictability in managing inventory levels for seasonal, end-of-life, and other low-volume products with varying demand, starting May 15, the low-inventory-level fee will not apply to products that have sold less than 20 units in the past 7 days.
  2. Low-inventory-level fees incurred due to excessive inbounding and processing times caused by Amazon or Amazon-managed services will be credited back to you by the 15th day of the following month. For example, May charges with excessive inbound delays will be credited back by June 15.
  3. Prime Day is an important sales driver for your business that is coming up soon, and we want to ensure that you are set up for success. For Prime Day 2024, we'll provide a time-bound exception on low-inventory-level fees for products that are included in Prime-exclusive Lightning Deals and Best Deals. The fee exception will apply for the four weeks following Prime Day when inventory levels may be more unpredictable based on Prime Day sales.

We appreciate your partnership as we continue innovating for you and our shared customers. We’re committed to providing you the right resources and tools so, together, we can get products to customers faster than ever.

You can use FBA Inventory to track your inventory health and identify products at risk of incurring low-inventory-level fees. Additionally, to estimate the low-inventory-level fee for affected products, go to FBA Revenue Calculator. To review historical charges for each product, go to SKU Economics report.

For more information on the FBA low-inventory-level fee and what qualifies, go to Low-inventory-level fee.

For fee updates by type, go to 2024 US referral and FBA fee changes summary.

Tags: News and Announcements
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Seller_SyPGXj255C19X
In reply to: News_Amazon's post

I feel that inbound inventory should also be calculated towards calculating the historical days of supply. How will excessive inbounding and processing times caused by Amazon or Amazon-managed services determined?

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Seller_SPqyukjiOB8bx
In reply to: News_Amazon's post

Just get rid of the stupid fee entirely already!

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Seller_9VXliiwLTFLOi
In reply to: News_Amazon's post

or just remove it? You're making your platform too complicated for new sellers. If you want to increase revenues for Amazon, find a better way where both sellers and Amazon benefits. Stop draining us.

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Seller_m1kvtRZcQzPyz
In reply to: News_Amazon's post

This is way to complex and unnecessary. It's official, when anyone asks me about starting on Amazon, I can't recommend this expensive, complicated platform anymore.

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580
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Seller_hYyESyngjN0kA
In reply to: News_Amazon's post

Managing this fee is way too complex. If you just increased the FBA fee it would have been easier to swallow. I don't want to learn another one of your stupid tools to manage your fees and expenses, I want to focus on growing my business. Hard to do that when I'm constantly looking over my shoulder at how Amazon's going to pull yet another dollar from my bank account.

Its very suspect that you ended the Amazon Lending program at the same time these fees were rolled out. Is it because you knew it would screw over 3P sellers, putting them out of business, and didn't want to get stuck holding the bag?

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601
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Seller_Wmw4utyFCqxCz
In reply to: News_Amazon's post

Amazon add a column / or in the fee estimate that shows the fee amount and if it will be currently charged on the main inventory page for that week.

Ie 2 rows one with one without and the highlighted one is current or similar on the fee estimate or add a row with the inventory inbound etc And make them the columns so we can size them

also add the inventory "health status / historical info on that page

We could see it all in one spot.

The sort feature is nice on the current page

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130
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Seller_HjfyVYcuJdbTf
In reply to: News_Amazon's post

As a new seller, all of my items are Exempted. That's great but I am unable to see what items WOULD GET THE FEE if/when I'm not a new exempted seller.

PLEASE, in reporting show charge then exempt or give us another way to see what would be charged/included in Low Inventory Fees and other fees.

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Seller_UmrCDJCu7DwPR
In reply to: News_Amazon's post

The low inventory fee needs to go - full stop. Backend fees are not cool. It is much easier to manage if you were to increase the base FBA fee.

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Seller_TeK7HYTK7PiOb
In reply to: News_Amazon's post

Translation: Our poorly thought out cash grab has to be modified extensively because we didn't consider all the normal reasons why a seller might not have at least 28 days of inventory at FBA at all times (seasonal, low sales velocity, new product, Amazon taking a month to receive inventory, etc.)

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Seller_COxHjSHk6Vauk
In reply to: News_Amazon's post

Currently, there is no way to see historical report in the system. The "SKU Economics report." as suggested shows nothing.

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