Update: Credit for Fulfilment by Amazon (FBA) low-inventory cost coverage fees (Pan-EU) incurred during April 2024

Countries

Read only
Australia
Belgium
Brazil
Canada
Egypt
France
Germany
India
Italy
Japan
Mexico
Netherlands
Poland
Saudi Arabia
Singapore
Spain
Sweden
Turkey
United Arab Emirates
United Kingdom
United States
United Kingdom
imgSign in
user profile
News_Amazon

Update: Credit for Fulfilment by Amazon (FBA) low-inventory cost coverage fees (Pan-EU) incurred during April 2024

As announced in December 2023, the FBA low-inventory cost coverage fee (Pan-EU) will go into effect on April 1, 2024. This fee applies to products with consistently low levels of inventory relative to their unit sales, which is also referred to as your historical days of supply. Maintaining sufficient inventory levels allows Amazon to effectively distribute products across our fulfilment network, which improves shipping speeds for customers and helps drive more sales for you.

We have heard feedback from a number of sellers that they are still uncertain what the exact effect of this fee will be on their business. To help you better see how this affects your business in real time, we will provide a transition period during the month of April.

We will still charge the FBA low-inventory cost coverage fees (Pan-EU) incurred between April 1 and April 30, but after the end of the month, we will credit your account for all low-inventory cost coverage fees (Pan-EU) charged during this period. Our goal is for you to see the end-to-end experience, and understand how this may affect your business so you can further update your inventory management to maintain sufficient inventory levels, drive greater sales and avoid the fee in the future.

How it will work

Starting April 1, the transition period will begin. You will still be charged the fee on eligible products shipped with historical days of supply below 28 days. Then, we will credit back any charged low-inventory cost coverage fees (Pan-EU) for units shipped between April 1 and April 30. You can expect to see this credit in May.

Starting May 1, the fee will be charged without a credit back. You can avoid the fee by ensuring that either the long-term historical days of supply (last 90 days) or short-term historical days of supply (last 30 days) are above 28 days (4 weeks). April will give you an opportunity to understand if your current inventory management actions will effectively avoid the fee or if there are adjustments you can make to avoid this fee so you’re prepared going forward.

For more information on the low-inventory cost coverage fee (Pan-EU) and what qualifies, go to Low-inventory cost coverage fee (Pan-EU).

Thank you for your continued partnership.

307 views
7 replies
Tags:News and announcements
03
Reply
7 replies
user profile
Seller_IZMia0ASJ6cAm

This is ridiculous.

Some products are seasonal.

I know half of our product's "Historical days of supply" make no sense whatsoever, for about a third of the year.

50
user profile
Seller_Nprc5XWvdLYk9

this really does not make any sense

we often have a high demand item that will sell out quickly.

will we be penalised for it selling.

if we then managed to secure more stock and replenish - will we be punished for the days we didnt have it available from fba.

Surely it is our choice what we sell and when we make it available for sale

20
user profile
Seller_0dRmnrqHjhFKd

I sell handmade items; my stock takes a long time to make. I will constantly be charged this fee if there is a high demand and I cannot make enough. This will put handmade sellers like me off using FBA.

As well as this, is this a daily fee? Will this fee apply separately to every single store I sell on too?

10
user profile
Seller_8qyKDFEJ59YIg

Hello, is this going to be one bulk amount credited for all the fees in April? Or we wills see separate credits? What report will best show this Low -inventory reimbursement? Thank you

00
user profile
Julia_Amzn

Hello Sellers,

For better visibility, here's the link to the updated article regarding the low-inventory-cost coverage fee (Pan-EU):

Update to low-inventory-cost coverage fee (Pan-EU)

Kind regards,

Julia.

00
Follow this discussion to be notified of new activity

Similar Discussions

user profile
Seller_AJxxLujbGDqaW
user profile
Seller_avVYhRmuLItL3
user profile
Seller_g96bc4RWrpUJS