Overview

Amazon introduced the FBA low-inventory-level fee effective April 1, 2024, with a transition period crediting all fees charged during April to give sellers risk-free window to observe impact. The fee targets products with fewer than 28 historical days of supply, measured by long-term (90-day) or short-term (30-day) inventory levels. Permanent charges began May 1, 2024 to encourage adequate stock levels across fulfillment network.

Key Points

• Fee effective April 1, 2024 — Applies to products shipped with fewer than 28 historical days of supply
• April credit period — All low-inventory-level fees charged April 1-30, 2024 credited back to seller accounts for risk-free observation
• Permanent charges from May 1 — Fee applied permanently with no further credits starting May 1, 2024
• 28-day supply threshold — Avoid fee by maintaining long-term (90-day) or short-term (30-day) historical days of supply above 28 days

How Historical Days of Supply Works

• Two measurement windows — Long-term looks at previous 90 days of inventory and sales data, short-term covers last 30 days
• Dual-window flexibility — If either metric exceeds 28 days, fee does not apply, allowing recently restocked sellers to avoid fee
• Sales velocity calculation — Measures how many days current inventory would last based on recent sales velocity

Strategies for Avoiding the Fee

• Increase reorder frequency — Maintain higher safety stock levels for fast-moving products using Inventory Performance Dashboard and restock recommendations
• Use short-term window strategically — Recent large shipment can push 30-day days of supply above 28 days even if 90-day average remains below threshold
• Evaluate low-velocity SKUs — Consider whether infrequently-selling products worth keeping in FBA or better suited for Fulfilled by Merchant

Seller Impact