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Update: Credit for FBA low-inventory-level fees incurred during April 2024

by News_Amazon

As announced in December 2023, the FBA low-inventory-level fee will go into effect on April 1, 2024. This fee applies to products with consistently low levels of inventory relative to their unit sales, which is also referred to as your historical days of supply. Maintaining sufficient inventory levels allows Amazon to effectively distribute products across our fulfillment network, which improves shipping speeds for customers and helps drive more sales for you.

We have heard feedback from a number of sellers that they are still uncertain what the exact effect of this fee will be on their business. To help you better see how this affects your business in real time, we will provide a transition period during the month of April.

We will still charge the FBA low-inventory-level fees incurred between April 1 and April 30, but after the end of the month, we will credit your account for all low-inventory-level fees charged during this period. Our goal is for you to see the end-to-end experience, and understand how this may affect your business so you can further update your inventory management to maintain sufficient inventory levels, drive greater sales, and avoid the fee in the future.

How it will work

Starting April 1, the transition period will begin. You will still be charged the fee on eligible products shipped with historical days of supply below 28 days. Then, we will credit back any charged low-inventory-level fees for units shipped between April 1 and April 30. You can expect to see this credit in May.

Starting May 1, the fee will be charged without a credit back. You can avoid the fee by ensuring that either the long-term historical days of supply (last 90 days) or short-term historical days of supply (last 30 days) are above 28 days (4 weeks). April will give you an opportunity to understand if your current inventory management actions will effectively avoid the fee, or if there are adjustments you can make to avoid this fee so you're prepared going forward.

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

Thank you for your continued partnership.

Tags: News and Announcements
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Seller_l7ZznHogKYJLH
In reply to: News_Amazon's post

Why not be honest and simply tell small business you dont want us here and that Amazon US is now for sellers primarily from China?

This marketplace is a slow death to US sellers...

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Seller_bBJLl4tDFyxgd
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Seller_HpwFdKHSk0i6q
In reply to: News_Amazon's post

I am grateful for the extension, but it really isn't enough. The continued increase in fees means I pass that on to the customer or sell on another marketplace.

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Seller_5ttu1AKpRj26d
In reply to: News_Amazon's post

as a business decision, it don't payoff to lose  your  money on nonsense  inventory charges,  so all "good items " hard to find " (i can't got big quantity)   for a good  price i will sell on other platforms 

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Seller_tpqaa8E80LdPD
In reply to: News_Amazon's post

What if your products are not reorderable? How do we deal with this? I haven't been able to find a place to automatically label my products are not reorderable. We sell items that are only produced to preorders, so they can't be reordered.

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Seller_ALZGvM9vhFf03
In reply to: News_Amazon's post

What report can we use to see that fee applied to each order ????

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Jim_Amazon
In reply to: Seller_ALZGvM9vhFf03's post

@Seller_ALZGvM9vhFf03

We’ve launched a new SKU Economics report to make financial information in the SKU Economics tool more accessible and to illustrate the breakdown of fees, including the recently launched low-inventory-level fee. The report allows you to view the economics of your selection at the FNSKU, MSKU, ASIN, and parent-ASIN level. This single source for historical economics data eliminates the need to merge sales, fees, and ads reports to understand your net proceeds.

To learn more about the data included in the report, go to the help page for SKU Economics report.

-Jim

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Seller_ALZGvM9vhFf03
In reply to: Jim_Amazon's post

Nice. As usual last second report launch with close to zero seller update. Is that report available through API ? I have a feeling I know the answer...

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Seller_V7poGyV8oS610
In reply to: News_Amazon's post

How should we deal with new ASINs we add to Amazon? I'm getting charged the Low Inventory Fee for items I have only had in stock for a few weeks. Since there is very limited history it is pretty hard to have the 28 days of inventory.

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Seller_ltGAvR9qmdawr
In reply to: News_Amazon's post

Just as expected, items that say they are health and have 60+ days of stock on hand are being charged low inventory fees.

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Seller_UmrCDJCu7DwPR
In reply to: News_Amazon's post

This is going to significantly reduce product selection and availability. We are not going to be as willing to carry a larger selection of items. There are too many supply chain factors beyond our control to be able to effectively navigate the new fee structure. This is a poorly thought through policy and it should be reversed.

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Seller_n2KUJ2Y2VfmMt
In reply to: News_Amazon's post

Is there a report that shows the low inventory fees during the month of April instead of waiting until the end of the month to see what sales the low inventory fee was applied to.

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Seller_lFPXQhRzGZWpc
In reply to: News_Amazon's post

This has to be the worst thought-out fee I've ever heard of. Many products are seasonal and therefore sellers are managing inventory levels up and down to suit demand for the season. In many cases, a seller will sell-out of a product entirely at the end of the season because the product is now obsolete. For Amazon to apply a one-size fits-all fee for low inventory levels is nothing more than a price gauge. Rethink and apply the fee ONLY to staples, groceries, books etc however you can't apply a fee like this to anything seasonal like clothing/apparel etc. It's just downright wrong!

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