Amazon Rolls Out Suggested Minimum Inventory Level Metric for All FBA Sellers
In December 2024 Amazon launched the Suggested Minimum Inventory Level metric on the FBA Dashboard for every seller. The ML‑driven tool calculates a per‑SKU minimum stock (e.g., 30 units for a 7‑day lead‑time gadget) to keep days‑of‑supply above the 28‑day fee threshold and improve IPI scores.
Overview
Amazon has added a new inventory‑planning metric called the Suggested Minimum Inventory Level to the FBA Dashboard for every Fulfillment by Amazon (FBA) seller. The tool, built on machine‑learning forecasts, proposes a per‑SKU minimum stock amount that aims to keep sellers out of the low‑inventory cost coverage fee and to improve delivery speed. After a pilot that began in late 2024, the feature is now live for the entire seller base.
Key Points
- Machine‑learning recommendation — The system evaluates each product’s sales history, demand forecasts, and your replenishment settings to generate a minimum stock figure.
- Platform‑wide rollout — Email alerts were sent in December 2024, and the metric is now visible to all FBA sellers in the dashboard.
- Fee‑avoidance guidance — Staying above the suggested level helps sellers keep their 30‑day and 90‑day days‑of‑supply above the 28‑day threshold that triggers the low‑inventory cost coverage fee.
- Delivery‑speed benefit — Amazon can allocate inventory to more local fulfillment centers when stock meets or exceeds the recommendation, potentially shortening Prime delivery windows.
- IPI score boost — Maintaining inventory at or above the suggested minimum is reported to the Inventory Performance Index (IPI) calculation, which can raise a seller’s IPI score.
- Restock integration coming — Amazon plans to merge restock recommendations, ship‑by dates, and suggested minimums into a single view on the FBA Dashboard.
How Suggested Minimum Inventory Level Works
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Data aggregation — Amazon pulls historical sales data (e.g., units sold per day over the past 90 days) and combines it with the seller’s replenishment settings such as lead time and safety stock.
Example: A kitchen gadget that sold 120 units in the last 30 days and 360 units in the last 90 days is flagged for analysis. -
Demand forecasting — The platform’s forecasting engine projects future demand for the next 30 days, adjusting for seasonality, promotions, and recent trends.
Analysis & Recommendations
Why This Matters
Keeping inventory above the suggested minimum helps sellers avoid the low‑inventory cost coverage fee that triggers when supply falls below 28 days, and the metric feeds directly into the IPI calculation, potentially unlocking more inbound capacity. Early adopters have already seen IPI lifts from 350 to 380 after aligning stock with the recommendation.
Key Takeaways
- The Suggested Minimum Inventory Level metric became live for all FBA sellers in December 2024 after a late‑2024 pilot.
- The tool uses machine‑learning forecasts and seller lead‑time settings to propose a minimum (e.g., 30 units for a 7‑day lead‑time product).
- Staying above the suggested level helps keep days‑of‑supply over the 28‑day threshold that triggers the low‑inventory cost coverage fee.
- Inventory at or above the recommendation is factored into the IPI score, which can raise the score and increase inbound capacity limits.
Recommended Actions
- →Open Seller Central > Inventory > Manage Inventory, locate the ‘Suggested Minimum’ column on the FBA Dashboard and flag SKUs below the recommendation.
- →Create purchase orders in Seller Central > Orders > Create PO for any SKU below its suggested minimum and bring stock up to or above that level.
- →Monitor the Fees > Low‑Inventory Cost Coverage Fee report weekly to confirm fees are avoided after restocking to the suggested levels.
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