Update: Credit for FBA low-inventory-level fees incurred during April 2024
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 fulfilment 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
The transition period will begin on April 1. 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 from 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.
Update: Credit for FBA low-inventory-level fees incurred during April 2024
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 fulfilment 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
The transition period will begin on April 1. 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 from 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.
8 replies
Seller_dotifYADa0BWY
Drunk on fees....want more FBA? How about making it less costly for sellers?
Seller_YTOPvZXiYeK5i
Trying to keep 30 days of inventory at Amazon is crazy. #1 many of our items sell in runs, only when Amazon or another seller is sold out. So a 30 day supply often turns into a 180+ day supply when other sellers restock. #2 our storage fees will increase tremendously (see point number 1 Amazon). #3 Amazon's "restock inventory report" has so many bugs in it we often run out of products for weeks or even months before the item appears on the reports, not to mention the reports appear to be a few days old when we request a download. This really impacts both slow and fast selling item stock accuracy. PLEASE fix this. With the number of items I sell (at LOW margins) I expect this fee will cost me $70K per year, assuming half of all the items I sell have less than a 30 day supply on hand. NOT TO MENTION the amount of capital it will take to finance all of the extra inventory, while we pray some predatory seller, or Amazon, does not come along and undercut us to the point where items stop selling completely. It happens all the time! Please, someone give Amazon a run for their money so we can move away from selling on this platform....... Almost forgot, many items I offer only sell in the spring. So at the end of the season I will be paying this fee on every seasonal item I sell as I let stock dwindle, what about sellers that have seasonal items for the holidays, good luck to them. Give us a break.
Seller_WVRGljjwKOlpv
There gonna be one day that Amazon cannot squeeze sellers and give market shares to other platforms, we will see this happen very soon
Seller_ME9zO3b6kTJAy
If this stays that way, im afraid many people will leave amazon. The fact that more people haven't yet made me think this would be a significant tipping point for many. This is a joke fee. A way to squeeze even more then the 70% you are taking from us.
