Amazon Extends Low-Inventory Fee Credit Period and Exempts Slow-Selling Products

May 13, 2024 at 5:28:47 AM

TL;DR Amazon has extended the credit period for the low-inventory fee to now run between April 1st and May 14th, 2024. From May 15th, products selling less than 20 units in the past week will be exempt from the fee. Sellers will be credited back for any low inventory fees caused by Amazon's processing or inbound times, with credits issued by the 15th of the following month. Exclusive deal fees will be temporarily exempt for Prime Day 2024.

Amazon Extends Low-Inventory Fee Credit Period and Exempts Slow-Selling Products

Amazon has made another change to its Low-Inventory Fee. This fee penalizes sellers for maintaining low stock levels compared to historical data, as part of Amazon's efforts to ensure speedy product delivery for customers.

The fee was initially launched in April 2024, with a credit for all charges in that month. The credit period has now been extended to between April 1st and May 14th, 2024.

From May 15th onwards, products that have sold less than 20 units in the past 7 days will be exempt from the low-inventory fee. This exemption applies to products that naturally have slower sales rates.

Amazon will issue credits if its own processing or inbound times result in low inventory fees. These credits will be issued by the 15th of the following month. For instance, any May charges caused by Amazon delays will be credited back by June 15th.

Prime Day 2024 will see a temporary exemption of exclusive deal fees, due to unpredictable sales patterns. This sets a precedent for other seasonal events.

The initial launch of the fee was criticized for its unclear parameters and poor dashboard visibility. However, these changes suggest that Amazon is listening to community feedback and adjusting its policies to be more seller-friendly.

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