Low Inventory Level Fee: How to Avoid It Without Overstocking

Amazon’s low inventory level fee started on April 1. It applies to standard size FBA products when your stock stays low compared with how fast it sells. The idea behind it is simple. When stock is thin, Amazon cannot spread it across its network for fast delivery, so it charges a fee.

The tricky part is that sending in more stock costs money too, through storage fees and capacity limits. Here is how the fee works and how to avoid it without overstocking.

How the fee works

• It applies to standard size products sold through FBA in the US.
• Amazon looks at your days of supply, meaning how many days your stock would last at your recent sales rate.
• If your days of supply stay below Amazon’s threshold over both a short and a longer period, a fee is charged on each unit shipped.
• Some products are exempt, such as new products for a period after launch and sellers with very low daily sales. Check Seller Central for current rules.

Your FBA inventory page now shows which products are at risk.

Why sellers get caught

• Sending big shipments rarely, so stock dips low between them.
• Sales spikes, such as a deal or a viral moment, that drain stock faster than planned.
• Tight capacity limits that force sellers to keep stock lean.
• Choosing shipping options that save on the inbound placement fee but slow restocking.

How to avoid it

Send smaller shipments more often

Steady replenishment keeps days of supply in a healthy range. Many brands now restock every two to four weeks instead of every few months.

Keep a buffer in a 3PL

Store extra stock in a third-party warehouse and send it to Amazon on a regular schedule. This keeps FBA stock steady without paying Amazon storage rates on all of it.

Watch your days of supply weekly

Track it for every product, especially your best sellers. Set a reorder trigger well above Amazon’s threshold so you have time to react.

Plan for promotions

Before a deal or big ad push, send extra stock so the spike does not drop you below the threshold.

Use Amazon’s restock suggestions

The Restock Inventory page gives recommended quantities and dates. Use them as a starting point and adjust for seasons.

Balance it with storage costs

The goal is not to send as much as possible. Too much stock means higher storage fees and aged inventory surcharges. Aim for a steady middle ground, enough to stay clear of the low inventory fee, but not so much that it sits for months. Our older guide on the IPI score covers the same balance.

Check the cost of the fee itself

For some slow or low priority products, paying the fee now and then may cost less than holding extra stock. Do the math product by product. Our post on 2024 fee changes covers all the new costs.

The bottom line

The low inventory level fee rewards steady replenishment. Send smaller shipments more often, keep a 3PL buffer and watch days of supply weekly. If you want help building an inventory plan around the new fees, see our catalog and account operations service or request a free audit.

FAQs

When did Amazon start the low inventory level fee?

The fee started on April 1, 2024 for standard size FBA products in the US.

How do I know if my products will be charged?

Your FBA inventory page in Seller Central shows products at risk and their days of supply.

Are new products exempt from the low inventory fee?

New products are exempt for a period after launch, and some low volume sellers are exempt too. Check Seller Central for current rules.