Low-Inventory Cost Coverage Fee

Elise Jackson

Post details

  • AUTHOR: Elise Jackson
  • CATEGORY: Amazon News
  • DATE: 30/04/2024

ICYMI: On April 1st, 2024, Amazon introduced a new fee (yay), the Low-Inventory Cost Coverage Fee (Pan-EU) has been implemented for standard-size products under the Pan-European FBA programme.

This fee addresses the challenges posed by consistently low inventory levels relative to customer demand and is applied to units shipped across Germany, France, Italy and Spain.

FAQs

  • What is the fee?: This fee applies to products with historical inventory levels below 28 days relative to historical demand. The fee is charged when both the long-term (last 90 days) and short-term (last 30 days) inventory days of supply fall below this threshold.
  • Is there anyone excluded from this fee?: Certain sellers and products are exempt from this fee, including new sellers to the Pan-European FBA programme, new product listings, and products with low sales volume.
  • How is the fee calculated?: It’s determined based on the product’s size tier and historical days of supply.
  • What is the impact on sellers?: Sellers can monitor their historical days of supply via the Fulfilment by Amazon inventory page. Adjustments to inventory levels can help mitigate or avoid the fee.

 

Staying on top of your inventory will be important to avoid incurring this fee! We recommend producing a ‘monitoring and mitigation strategy’ to manage this process.

You can monitor your historical days of supply through the Fulfilment by Amazon inventory page. Keep an eye on these metrics and make necessary adjustments to inventory levels, so you can mitigate or even avoid incurring the Low-Inventory Cost Coverage Fee.

 

How to Check Your Historical Days of Supply

To access the historical days of supply metric, sellers should navigate to the Fulfilment by Amazon inventory page and click on “Details” in the Historical Days of Supply column. This feature provides sellers with the data they need to make informed decisions about their inventory management.

Want to know more about this fee, including the fee rate? Visit Low-inventory cost coverage fee (Pan-EU) for all the lowdown!

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