Overview

Amazon has announced an extension of the transition credit period for the Pan‑EU low‑inventory‑cost coverage fee, giving sellers additional time before the fee becomes permanent. The update also introduces three rule changes that ease the fee’s impact on seasonal items, Amazon‑induced delays, and post‑promotion inventory drops. Sellers operating across Europe should adjust their replenishment plans now to avoid surprise charges later.

Key Points

• Extended transition credit — The grace period during which Amazon refunds the low‑inventory fee is lengthened by 30 days, allowing sellers to test inventory strategies without immediate cost.
• Higher exemption threshold — Products that sell fewer than 20 units per week over the last 7 days are exempt, replacing the former 5‑unit‑per‑week benchmark that required a 30‑day look‑back.
• Automatic credits for Amazon delays — If inbound or processing setbacks on Amazon’s side cause stock to dip below the threshold, sellers receive a credit by the 15th of the following month.
• Four‑week post‑promotion buffer — Items featured in Prime Day, Black Friday, or other exclusive deals are shielded from the fee for 28 days after the event ends.
• Tool‑driven monitoring recommended — Amazon advises using Manage Inventory, fee‑estimation widgets, and the SKU Economics report to spot at‑risk SKUs before the fee applies.

How the Updated Low‑Inventory‑Cost Coverage Fee Works

1. Eligibility check — Amazon scans each Pan‑EU FNSKU daily; if a product’s average weekly sales over the past 7 days fall below 20 units, the fee is automatically waived. Example: A winter scarf that sold 15 units last week will not incur the fee, even though its inventory sits at 5 units.
2. Delay‑triggered credit — When a shipment is delayed in an Amazon fulfillment center and the resulting stock shortfall would normally generate a fee, the system logs the delay and issues a credit on the seller’s account statement dated the 15th of the next month. Example: A seller’s bulk‑paper shipment arrives two weeks late, dropping inventory to 3 units; Amazon credits the fee that would have been charged for that SKU.