Amazon's TIPS Program: How Sellers Can Cut Storage and Removal Fees During Peak Season
Amazon’s Target Inventory for Peak Success (TIPS) runs Oct 1‑Dec 31 2025 for invite‑only sellers moving ≥100 units/week. Eligible SKUs that stay within monthly low/high bands for at least 25 days earn a 25% credit on storage and low‑inventory fees, and over‑stock held 90‑120 days gets a 50% removal‑fee discount.
Overview
Amazon has launched the Target Inventory for Peak Success (TIPS) program, an invite‑only effort that runs from October 1 to December 31 2025 in the U.S. marketplace. The initiative rewards high‑velocity sellers—those moving at least 100 units per week—with sizable cuts to storage and removal fees, provided they keep inventory inside Amazon‑suggested ranges. Sellers who qualify can lower seasonal costs that normally erode profit margins during the holiday rush.
Key Points
- Invite‑only participation — Only sellers who receive a confidential invitation can join, and the program details are protected under Amazon’s Business Solutions Agreement.
- High‑velocity product focus — Eligibility is limited to items that sell 100 + units each week, steering the benefits toward established, fast‑moving SKUs rather than new or slow‑selling listings.
- Monthly inventory targets — Enrolled sellers get a minimum and maximum stock recommendation for each qualified product, refreshed at the start of every month in the October‑December window.
- 25‑day compliance rule — To earn fee credits, a seller must keep each product’s inventory inside the prescribed band for at least 25 days within the calendar month.
- Retroactive fee credits — Storage and low‑inventory‑level fees are billed at the regular rate first; Amazon applies the discount as a credit during the fourth week of the following month.
- Removal‑fee discount window — Products that remain unsold 90‑120 days after delivery qualify for a 50 % reduction on removal fees, but the discount expires once the 120‑day mark is passed.
How the TIPS Program Works
- Enrollment confirmation — The seller sends a brief email to tips‑[email protected] confirming interest. Example: A seller of seasonal décor emails the address and receives a welcome packet within 48 hours.
- Monthly target receipt — At the beginning of each month, Amazon supplies a spreadsheet listing each eligible SKU together with a “low” and “high” inventory threshold. : For a bestselling LED string light, the target range might be 1,200 – 1,800 units for October.
Analysis & Recommendations
Why This Matters
During Q4, storage fees can reach $0.75 per cubic foot and removal fees $0.50 per unit. TIPS can cut those costs by 25% and 50% respectively, translating to up to $800 savings on $3,200 storage fees for a typical high‑volume seller, protecting margins in the peak season.
Key Takeaways
- TIPS is invite‑only and runs from Oct 1 to Dec 31 2025 in the U.S. marketplace.
- Eligibility requires ≥100 units sold per week per SKU and compliance for at least 25 days each month.
- Qualified SKUs receive a 25% credit on storage and low‑inventory fees, issued in the fourth week of the following month.
- Products unsold for 90‑120 days qualify for a 50% discount on removal fees.
Recommended Actions
- →Check Seller Central > Notifications for a TIPS invitation email and confirm via tips‑[email protected].
- →Download the monthly target spreadsheet from the TIPS banner in Seller Central and import thresholds into your inventory‑management system.
- →Set up daily alerts in your system for any SKU that falls within five units of the low threshold and place reorder alerts to maintain the 25‑day co...
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