Low Inventory Fees - Removal
Amazon is charging low inventory fees even though sufficient unites are present at FBA. I have sent 1040 units on June 6th which is~ 60 days of supply. Minimum requirement is 280 units to meet 28 days of supply. On hand is 448 and inbound is 588. Therefore Amazon has enough units. I also tried creating a new shipment to send in additional units and amazon says there are enough units and additional units cannot be sent in. Per unit low inventory fee is $0.70 is being charged.
Case ID - 18015703691 was created, however my request to remove the low inventory fee was denied. This is ridiculous, though there is healthy inventory level maintained, being charged a fee incorrectly and also denied a correct assessment.
Tagging @Topher_Amazonto please look into this case and provide a resolution.
Low Inventory Fees - Removal
Amazon is charging low inventory fees even though sufficient unites are present at FBA. I have sent 1040 units on June 6th which is~ 60 days of supply. Minimum requirement is 280 units to meet 28 days of supply. On hand is 448 and inbound is 588. Therefore Amazon has enough units. I also tried creating a new shipment to send in additional units and amazon says there are enough units and additional units cannot be sent in. Per unit low inventory fee is $0.70 is being charged.
Case ID - 18015703691 was created, however my request to remove the low inventory fee was denied. This is ridiculous, though there is healthy inventory level maintained, being charged a fee incorrectly and also denied a correct assessment.
Tagging @Topher_Amazonto please look into this case and provide a resolution.
9 replies
Seller_i6S8knzW6zU6Z
Hi @Seller_SY66yN1lpE1Q7,
I took another look at Amazon’s fee calculation rules just to double-check.
According to the help page on the Low-inventory-level fee (link) Amazon’s system only counts your current "sellable FBA inventory units", so anything still inbound (like your 588 units) isn’t included in the days-of-supply calculation until it’s fully received.
They use your current sellable inventory (448 units in your case) and your average daily shipped units over the past 30 and 90 days. You have to show more than 28 days of supply on both windows to avoid the fee.
One more thing: the help page says the "historical days of supply" metric only updates once a week, so there can be a delay before your shipment is fully reflected in their calculation.
I know you’re hoping for a refund, but hopefully this explanation is at least a bit helpful while you’re sorting things out.
Wishing you the best,
Michael
KJ_Amazon
Hello @Seller_SY66yN1lpE1Q7
The Low-inventory-level fee help page shared by @Seller_i6S8knzW6zU6Z has details on how this fee is calculated.
I also recommend reviewing the article: Low-inventory-level fee further explained which has details on how the low-inventory-level fee is calculated, and where you can go within Seller Central to review your historical days of supply.
How is the low-inventory-level fee calculated?
Amazon will only charge the low-inventory-level fee when the historical days of supply metric are below 28 days. We will calculate the historical days of supply metric over the short-term (last 30 days) and long-term (last 90 days) and only assess the fee if both are below 28 days. This provides flexibility, as you can avoid the fee through short-term improvements in inventory positions or through long-term management of inventory levels.
The historical days of supply metric is calculated at the parent-product level. For parent-products with less than 28 days of historical supply, the low level inventory fee will be added to the FBA fulfillment fees.
Seller_TTG0TX5GOhqmW
@KJ_Amazon
KJ: Has the LLIF (low HDOS) fee formula changed? We noticed in the last month or so that our overall monthy fee dropped heavily.
In digging further, it seems that while the HDOS # still "exists" in the reports and is below 28 -- many more SKUs are being marked with the flag that the LLIF does not apply.
It seems that the formula may have changed as to when a fee applies vs. does not. I'm thinking maybe it was temporary to cover prime day, or is there an overall change?
Not complaining -- but we need to understand how the system works.
