Minimum Inventory Level Metric & Low-Level Inventory Amazon FBA Fees Coming April 2024

Over time, Amazon has continued to find new and unique ways to charge sellers for using their platform. Sometimes, the reason behind new fees is to discourage certain seller behaviors. Unfortunately, this is the case with the new low-level FBA inventory fees coming in April 2024. Simply put, sellers with low inventory levels will see additional charges starting this Spring.  

What is the Low-Level Inventory Fee and How Will it be Calculated?

Starting April 1, 2024, Amazon will begin charging a low-level FBA inventory fee. The fee will be calculated on the parent ASIN level by historical supply data from the past 3 months. Amazon will calculate based on the short-term and long-term historical days of supply. If both metrics show a supply of 28 days or less, a low-level inventory fee will be charged. (If only one metric is below 28 days, the fee won't apply.)  

Using the Minimum Inventory Level Metric to Prevent Low-Level Inventory Fees:

FBA (Fulfilled by Amazon) sellers should begin to keep a close eye on their minimum inventory level metric. It's a good idea to stay on top of historical supply data and work to prevent it from going below 28 days. The historical days of supply on the parent ASIN level can be found on the FBA Inventory Dashboard, and the data is updated weekly.

While it’s important to ensure your FBA inventory is stocked to prevent low-level inventory fees, remember not to go overboard. Sending in more inventory than you’ll realistically sell risks long-term storage fees.

Why is Amazon Introducing the New Low-Level Inventory Fee for FBA Sellers?

Amazon explained the reason for the fee in a recent Seller Forum post.

“When sellers don’t carry enough inventory, we are unable to distribute products as effectively and efficiently across our network, which slows delivery speed to customers and increases shipping costs”.

If you need a team that specializes in Inventory Management, our team of Inventory Experts at Blue Wheel is here to help achieve your goals! If you're a client looking for more information, please contact your account team.