Regarding a new charge called the low-inventory-level fee that will go into effect on April 1, 2024, Amazon has provided some crucial information. This charge is intended to solve issues with consistently low inventory levels in relation to client demand, which can have a detrimental effect on the effectiveness of the distribution network, the timeliness of delivery, and the cost of shipping.

Fee overview

Effective date: April 1, 2024
Usability: Products in standard sizes with historically low stock levels in relation to demand.

Calculation: Both long-term (past 90 days) and short-term (previous 30 days) charges are computed using historical days of supply. There will be fees if a product’s historical days of availability are less than 28 days.
Fee Structure: Depending on size tier, shipping weight, and historical days of supply, fees are assessed every completed product.

Transition Time: Sellers will have a period of transition during which any fees paid between April 1, 2024, and April 30, 2024, will be reimbursed back in May.

Discounts & Eligibility: Only standard size products with historical days of supply less than 28 days are subject to fees. Certain products are excluded, like those that are part of particular programs or that Amazon Warehousing and Distribution automatically restocks.

Keep moving forward despite the new low-inventory-level cost. You can maintain your competitive edge by working with our Amazon marketing consultant. Get in touch with us right now to see how we can assist.