The new "Low inventory fee"
Hi all, just a quick one- with this new low inventory fee that's coming in, can products be set to "unreplenishable" to avoid the low inventory fee (particularly for the lines that we cannot get hold of anymore) or are we forever bound to pay over the odds for the last X amount of units that we have in FBA that Amazon deem are too low in stock?
36 replies
Seller_Nprc5XWvdLYk9
We are in a similar position many of our lines are fast-moving and often in high demand, but are not replenishable when sold through.
Seller_76AUwmqvSyRIM
I did read something about this on Kika's forum but thought it was US only. Is it coming here already?
Any links? Nothing comes up on seller central search.
Seller_wA3Q6hSOKG6WF
I haven't heard of a low inventory fee, can you enlighten us please? Is this here in the UK?
Ezra_Amazon
Hi @Seller_13WN1RRFPIM6Q,
Thank you for reaching out with your question.
The fee is determined by the historical days of supply metric rather than solely the replenishability status of the product.
If a product's historical days of supply fall below 28 days over both the long term (last 90 days) and short term (last 30 days), the low-inventory cost coverage fee (Pan-EU) will be applied.
However, there are specific scenarios where this fee won't apply. For further details, you can refer to the Low-inventory cost coverage fee (Pan-EU).
I hope this provides clarity on your query.
Best regards, Ezra
Seller_GPLxAbyNPI33I
Yet another ploy by Bezos to milk more money out of sellers, is he not satisfied with just giving buyers their money back?
Seller_tRuvBEHDedp4q
Im glad I no longer do FBA
So basically if you send in stock that stops selling - you get charged extra in the form of long term storage fees
if you send in stock that is popular, but you run low because you cannot replenish - you also get charged extra fees
So the only stock you want in FBA is items with a high turnover and that you can replenish often and quickly
in both cases it may make more sense to pull out the stock from FBA and sell it as FBM
Seller_Fg2fqaWOnEtha
Does that mean that Amazon get to pay a low inventory fee for all their product lines that have been out of stock for ages and still win the BB?
Seller_jG3UXOpPuTUgN
jesus, does this only apply to FBA?
another stealth Bezos' tax, when will amazon stop milking people. except the customer that is.
Seller_7aV9GGKijpErb
this doesn't apply to UK does it? It's only for PAN EU inventory. NOTHING has been mentioned about it applying to UK and their is nothing in the FBA fee changes for 2024 about it
Seller_sg54Fq7GfBZzn
There is no doubt it will come to the UK as others have said, America tends to be the benchmark and then everyone else follows.
The reality as some have said is, you send too much stock your penalised, you dont send enough your going to be penalised.
So all of those huge FBA centres standing empty would quickly change this, but I suspect people will continue FBA.
The issue with the whole scenario is that we have sent stock in thats seasonal and amazon say hey we think you have sent too much, your overstocked by 500 units.
So you get whacked on your IPI, then it all sells rapidly and Amazon say hey you dont have enough, take another IPI hit.
So you send in more and then you find your overstocked again and rinse and repeat
I totally get them wanting to ensure they have a regular supply of stock.
But when they tell you that you have 10 in stock and are forecasted to be 10 over so you remove them, only to then get an alert saying they want 50 a day after you have recalled the 10 you said was over, its far from clear.
For us FBM is the only way now realistically for most products.
