Overview

Amazon offers a referral fee discount program designed to help sellers move excess inventory more efficiently. When sellers follow Amazon's pricing and promotional recommendations for overstocked listings, Amazon passes along savings in the form of reduced referral fees on each unit sold. This incentive aligns seller behavior with inventory health best practices while providing a tangible financial benefit.

Key Points / What Sellers Need to Know

• Eligibility is tied to excess inventory — The discount applies specifically to listings that Amazon has identified as having excess inventory levels, meaning stock that is moving slower than expected relative to demand.
• Discounts range from $0.30 to 25% of the referral fee — For every qualifying unit sold, sellers receive a discount of at least 30 cents per unit, with the maximum discount capped at 25% of the standard referral fee for that item.
• You must adopt Amazon's recommended actions — To qualify for the discount, sellers need to follow the pricing and offer-period recommendations provided in their inventory reports. Simply having excess inventory is not enough.
• Amazon can modify or end the program at any time — The company reserves the right to discontinue or change the details of this incentive without giving sellers advance notice.
• The FBA Inventory report drives recommendations — Amazon's inventory management tools flag listings with excess stock and provide specific sell-through improvement suggestions that trigger eligibility for these discounts.

How the Program Works

Amazon continuously monitors inventory levels across its fulfillment centers and identifies listings where a seller's stock exceeds projected demand. When this happens, the FBA Inventory report flags those ASINs and generates specific recommendations, which typically include adjusting the listing price downward or running a limited-time promotional offer. If the seller adopts the recommended price and offer period, Amazon applies an automatic discount to the referral fee charged on each unit sold under those conditions. The discount is calculated per unit and is deducted from the standard referral fee that would otherwise apply to that product category.