Plan FBA inventory levels using a new metric
We’ve launched a new Minimum Inventory Level metric to help FBA sellers plan inventory levels more effectively, improve delivery speeds, and help them to avoid the recently announced low-inventory-level fee.
We leverage advanced machine learning models to analyze demand forecasts and replenishment settings and recommend the minimum number of units per product that you should have on hand in our fulfillment centers.
Maintaining inventory above the Minimum Inventory Level helps you meet customer demand and offer faster delivery speeds as products can be distributed across local fulfillment centers closer to customers. Sellers who maintain units above the Minimum Inventory Level see a 15% increase in sales over a four-week period on average, though actual results may vary .
To view your Minimum Inventory Level metric, go to FBA Inventory.
The Minimum Inventory Level metric is an additional data point that helps you manage your FBA inventory and works alongside other important tools and metrics:
- Historical days of supply: Effective April 1, 2024, the low-inventory-level fee will apply when both the long-term historical days of supply (last 90 days) and short-term historical days of supply (last 30 days) are below 28 days (4 weeks). To view your historical days of supply, go to FBA Inventory.
- Inventory Performance Index (IPI): Efficient inventory management requires balancing inventory level so that it is not too much (excess) or too little (low or out of stock). Your IPI score reflects how well you reduce excess inventory, fix stranded listings, and improve sell through. Maintaining the Minimum Inventory Level will positively contribute to your IPI score. We’ll update the Inventory Performance dashboard in the coming weeks to reflect this change. To review your IPI score, go to the FBA Inventory dashboard or the Inventory Performance dashboard.
- Capacity limits: Your capacity limits are influenced by your IPI score, as well as other factors such as sales forecasts for your products, fulfillment center capacity, and shipment lead time. Your capacity limits will allow you to carry enough inventory to avoid the low-inventory-level fee, provided you don’t utilize your capacity to hold excess inventory. For more information, go to FBA capacity limits.
- Restock recommendations: Restock recommendations will continue to provide you with specific recommended ship-by dates and replenishment quantities for your next incoming shipments to help you maintain the Minimum Inventory Level. We’re working to bring restock recommendations to the FBA Inventory page for your convenience in the coming weeks.
For more information on how to manage your FBA inventory, go to FBA Inventory overview.
Seller_GnbYMKmd7oQ9W
does not work very well -, your dev team need to fix it
sales last 90 days - $0.00 - 0 units
On hand 1
Min level 3
why have a min level above 1 when the inventory page says I have enough stock for 411 days?
Is this to justify adding the low inventory fee for the 1 item I have left in stock of this sku when it does eventually sell?
Seller_xuvLX6pPQ7wPY
This draconian fee will force many of us out of FBA. Small Standard per Unit Fees anywhere from $0.32 to $0.89 if inventory levels fall below Amazon's "Machine Learning" model for historical levels is unsustainable for us given that our sales are highly seasonal and for a good portion of our catalog, these fees represent 5% to 11% of our sale price. They already took away small and light for these products; it may be that Amazon is forcing us out of FBA by way of over-pricing the service.
Seller_OChH0VD9utdxq
Your advanced ai does not take into consideration when you allow Chinese counterfeiters to drive us out of the market. Some companies are unable to keep certain products in stock, and you are both enabling and promoting this problem, and soon you are going to move to profit off of the issues you caused.
Seller_9MdSmMvZ83jn0
Please add the Minimum Inventory level to the restock report.
Seller_7rNklHYkq1IwY
"Restock recommendations: Restock recommendations will continue to provide you with specific recommended ship-by dates and replenishment quantities for your next incoming shipments to help you maintain the Minimum Inventory Level. We’re working to bring restock recommendations to the FBA Inventory page for your convenience in the coming weeks."
This is not for "our convenience" and you know it. Amazon is forcing these policies down the throats of 3rd party sellers, without consultation or representation. And Amazon is still "working to bring restock recommendations to the FBA Inventory page". So Amazon still has not finalized providing the level of detail necessary for 3rd party sellers to avoid these future penalties based on Amazon's arbitrary and/or faulty algorithms, also developed without consultation or representation.
I wonder how much longer Amazon will be able to engage in this type of activity without costly litigation and/or resulting additional government oversight?
Seller_tAfXR7sVBEoZS
This is a DISASTER. I have closed items that are showing as not having enough stock. Items that are being researched count as out low stock or not being in Amazon's hands. Items that are in transit or waiting check-in don't count. It also does NOT account for sellers intentionally selling out of a product to close it out or rebrand the packaging. It also does not account for adjustments for seaonsal sales or declining sales where we know it is coming better than your bots do. This is just another way for Amazon to take our money. It is NOT helpful. If it was just about being helpful, Amazon would have the numbers to "guide us" and no associated fee!
Seller_Y5detairCattJ
We REALLY need to use a program that looks at trends, seasonality and previous period sales. Why do we look at last 90 or 30 days for January stock levels? We also sell highly seasonal items like cashmere accessories. Our demand forecasting software forecastrx.com has been developed by our team over 7 years. Demand forecasting is the most important piece to improve stock order performance.
We currently utilize FBA, MCF and AWD. Understanding trends (positive, neutral or negative) Seasonality (Xmass, Prime day, other high volume periods that repeat) are critical. We import from 3 countries, 7 manufacturers - all with varying MOQ's, lead times. etc. ForecastRx.com incorporates all factors by SKU/ASIN to develop purchase recommendations and stocking recommendations. The internal tools in Seller Central haven't been designed from the perspective of a seller.
Seller_iobipI6xASRkh
The metric is entirely broken, as has been pointed out numerous times without any resolution.
An new item we listed 3 months ago is telling me
- Sales since creating the ASIN - 17
- Current quantity - 51
- Minimum quantity - 51
- Days of Supply - 173
This is pretty much the same with all ASINs who generate a min level. I have a minimum quantity of 17 on an item we historically only make a few and list one a month on Amazon. Never going to increase that because they are very time consuming to make (almost everything is hand-made).
Amazon's AI system is severely broken as we can see through support, automations, reviews, and so on. Why are we handing more to a broken system? None of this makes any sense.
Amazon has never been able to predict inventory correctly but this seems like Amazon just ignores how broken their things are and keeps giving us broken and useless tools instead of fixing the ones they have so they actually work. Not a good move for long-term growth.
Seller_2LQMd7u0WyTlL
These untested soothsayer shenanigans should be moved to a sandbox, where interested sellers with too much time on their hands can participate in beta testing, if they like.
Seller_uqvrod3gVeu5N
I sell items that are dated. Currently working on selling through the last of 2023 for FBA and starting to send in 2024. Why would I want to keep a "healthy" stock of 61 on something that would be considered expired?
