Overview

Amazon has introduced a low-inventory cost coverage fee targeting Pan-European FBA sellers who consistently maintain insufficient stock levels across European fulfillment centers. The fee applies when a product's historical days of supply drops below 28 days, and it has been fully enforced since May 2024. For sellers running lean inventory strategies, this adds a significant new cost consideration that requires careful restock planning.

What the Fee Covers

The low-inventory cost coverage fee applies to Pan-EU products where inventory levels are consistently low relative to unit sales. Amazon tracks this through a metric called "historical days of supply," which estimates how many days your current stock would last based on recent sales velocity.

The underlying logic is straightforward: when sellers keep too little inventory in the European fulfillment network, Amazon cannot distribute products strategically across multiple warehouses. That leads to longer delivery times and reduced efficiency. This fee effectively passes those added logistics costs back to the sellers contributing to the problem.

How the 28-Day Threshold Works

The critical number is 28 days. If your product's historical days of supply falls below that mark, the fee applies to eligible units shipped through Pan-EU.

Amazon provides two calculation windows, and sellers only need to meet the threshold on one of them to avoid the charge:

• Long-term window — Looks at inventory and sales data over the past 90 days
• Short-term window — Covers only the most recent 30 days

This dual-window approach offers meaningful flexibility. A seller who just received a large restocking shipment can clear the fee based on the 30-day metric, even if the 90-day average is low. Similarly, a brief dip in stock caused by a demand spike will not trigger the fee if the 90-day figure remains healthy. For seasonal products or items with irregular demand, understanding how both windows interact is essential for avoiding unnecessary charges.

The April 2024 Transition Period

Amazon rolled out a transition period during April 2024 to help sellers gauge real-world impact. The fee officially went into effect on April 1, and charges appeared on seller accounts as normal throughout the month. However, Amazon credited back all Pan-EU low-inventory fees for units shipped between April 1 and April 30, with credits applied in May 2024.