Someone explain the Low Inventory Fee to me like I am 5

[papy]

Hey @Muse, this was shared by @Sundance…

@Sundance

There are 3 new rules…

We’ve continued to listen to your feedback and are making three additional changes that are designed to better target these low-inventory-level fees to where you have the most control to ensure healthy inventory:

1. Because of the greater unpredictability in managing inventory levels for seasonal, end-of-life, and other low-volume products with varying demand, starting May 15, the low-inventory-level fee will not apply to products that have sold less than 20 units in the past 7 days.
2. Low-inventory-level fees incurred due to excessive inbounding and processing times caused by Amazon or Amazon-managed services will be credited back to you by the 15th day of the following month. For example, May charges with excessive inbound delays will be credited back by June 15.
3. Prime Day is an important sales driver for your business that is coming up soon, and we want to ensure that you are set up for success. For Prime Day 2024, we’ll provide a time-bound exception on low-inventory-level fees for products that are included in Prime-exclusive Lightning Deals and Best Deals. The fee exception will apply for the four weeks following Prime Day when inventory levels may be more unpredictable based on Prime Day sales.

Additional info from that same announcement:

On April 1, 2024, the FBA low-inventory-level fee went into effect, and we announced any low-inventory-level fees charged in April would be credited back. We’re extending this transition period through May 14. By May 31, you’ll be credited back for any low-inventory-level fees incurred between April 1 and May 14. We hope this transition period has helped you get more familiar with the fee and fee management tools. We’ve seen that the additional time has enabled even more sellers to achieve healthy inventory levels and avoid this fee entirely.

We’ve continued to listen to your feedback and are making three additional changes that are designed to better target these low-inventory-level fees to where you have the most control to ensure healthy inventory:
…
We appreciate your partnership as we continue innovating for you and our shared customers. We’re committed to providing you the right resources and tools so, together, we can get products to customers faster than ever.

You can use FBA Inventory to track your inventory health and identify products at risk of incurring low-inventory-level fees. Additionally, to estimate the low-inventory-level fee for affected products, go to FBA Revenue Calculator. To review historical charges for each product, go to SKU Economics report.

For more information on the FBA low-inventory-level fee and what qualifies, go to Low-inventory-level fee.

For fee updates by type, go to 2024 US referral and FBA fee changes summary.