Here are seven strategies to avoid Amazon's low inventory fee:
1. Maintain *Sufficient* Inventory Levels
Keep your inventory above 28 days of supply.
Avoid the fee by ensuring you have enough stock.
This is key to managing costs.
2. Use Inventory Management Tools
Leverage tools like Conditional Repricers.
They can automatically adjust prices when nearing the 28-day supply mark.
This helps prevent inventory dips that trigger fees.
3. Monitor Historical Days of Supply Metric
Regularly check your "historical days of supply" in FBA reports.
This metric shows the greater of the 30-day or 90-day periods Amazon uses.
Keeping this above 28 days is crucial.
4. Improve Sales Forecasting
Predict inventory needs based on sales history and trends.
This allows you to maintain optimal levels.
Avoid stocking out or oversupplying.
5. Leverage Amazon's Distribution Services
Use Amazon's Warehousing & Distribution service, which automates inventory replenishment to FBA.
If they replenish >70% of your stock, you don't pay the low inventory fee.
6. Manage Inventory for Seasonal Products
Be mindful of inventory levels for seasonal items.
Plan to have little to no remaining inventory post-season.
This prevents racking up fees.
7. Actively Monitor and Adjust
The core strategy is actively monitoring your "historical days of supply."
Take measures like adjusting prices or improving forecasting.
Keep this metric above the 28-day threshold to avoid Amazon's low inventory fee.
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