Avoiding Amazon’s Low-Inventory-Level Fee

For quite some time, Amazon has been imposing hefty storage fees on FBA sellers who have excessive inventory. Now, however, a new challenge arises: the Low-Inventory-Level fee.

What’s the rationale behind Amazon’s introduction of this fee?

According to Amazon, insufficient inventory hampers their ability to efficiently distribute products across their network, leading to slower delivery times for customers and increased shipping costs.

To adhere to this requirement, sellers must maintain a minimum 28-day supply of inventory at Amazon. Failure to do so will result in additional fees being levied.

To keep track of your inventory’s historical days of supply at the product level, navigate to the FBA Inventory page on Seller Central. Here, you’ll find a column labeled “Historical days of supply,” where the system automatically calculates the figure for each product. This column displays the greater value between the short-term (past 30 days) and long-term (90 days) metrics:

Keep an eye on this metric, along with your average inbound check-in times, and keep at least 28 days of inventory in stock at FBA.