Amazon has an important update regarding a new fee that will be implemented starting April 1, 2024: the low-inventory-level fee. This fee is designed to address concerns related to consistently low inventory levels compared to customer demand, which can negatively impact distribution network efficiency, delivery speed, and shipping costs.
Fee overview
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Effective date: April 1, 2024
Applicability: Standard-size products with historically low inventory levels relative to demand.
Calculation: The fee is based on the historical days of supply, calculated over both a long-term (last 90 days) and short-term (last 30 days) period. If a product’s historical days of supply fall below 28 days, the fee will apply.
Fee structure: The fee is charged per unit fulfilled and varies based on size tier, shipping weight, and historical days of supply.
Transition period:Fees incurred between April 1, 2024, and April 30, 2024, will be credited back in May, providing a transition period for sellers.
Eligibility and exemptions: The fee applies only to standard-sized products with historical days of supply below 28 days. Certain products are exempt, such as those enrolled in specific programs or auto-replenished by Amazon Warehousing and Distribution.
Don’t let the new low-inventory-level fee slow you down. With our Amazon consultants by your side, you can stay ahead of the game. Contact us today to see how we can help.
