Amazon’s new “low-inventory-level fee” can be a significant expense for sellers who don’t maintain adequate inventory levels. However, One Page Inventory‘s FBA Minimum Inventory Warning filter can help you avoid this fee by identifying products that are at risk of falling below the minimum inventory level.
How is the Fee Calculated?
Effective April 1, 2024, Amazon has implemented a low-inventory-level fee for standard-size products with consistently low inventory relative to customer demand. The historical days of supply metric is calculated at the parent-product level, and the fee will only be applied if both the long-term (90 days) and short-term (30 days) historical days of supply are below 28 days. The fee rates vary depending on the product’s size tier and shipping weight.
What is the Low-Inventory-Level Fee?
The low-inventory-level fee can range from 0.32 to 1.11 per unit, depending on the product’s size tier and shipping weight. This fee can quickly add up, cutting into your profit margins and making it more challenging to maintain a successful Amazon business.
Note: Amazon heard users feedback and is providing a transition period. Low-inventory-level fees incurred for units shipped between April 1, 2024 and April 30, 2024 will be credited back in May.
Who is Subject to the Fee?
The low-inventory-level fee will apply to all sellers who sell standard-size products on Amazon. However, there are some exemptions, including:
- New Professional sellers for the first 365 days
- New-to-FBA parent products for the first 180 days
- Products that are auto-replenished by Amazon Warehousing and Distribution
How Can I Avoid the Fee?
There are a few things you can do to avoid the low-inventory-level fee:
- Maintain adequate inventory levels
- Use Amazon’s auto-replenishment service
- Use OnePageInventory to Manage your inventory levels closely
In the ever-evolving world of Amazon FBA, staying ahead of the curve is crucial for success. By leveraging the Minimum Inventory Filter from OnePage Inventory, you can navigate the new low-inventory-level fee with confidence and continue to grow your Amazon business. Start optimizing your inventory today and take your FBA profits to new heights. Try OPI for free today!
