Amazon has extended the credit period for its new low inventory fee and introduced exceptions to accommodate third-party sellers, aiming to optimize product supply and delivery efficiency.
Fee Extension and Seller Support
Amazon has announced an extension to the transition period for its low inventory fee, providing third-party sellers with additional time to adapt. The fee, which targets standard-sized products with less than 28 days of supply, was initially offset by credits that were set to expire on April 30. However, Amazon has now prolonged this credit period until May 14, with credits to be issued by May 31. This move is designed to assist sellers in familiarizing themselves with the fee and its management tools, encouraging them to maintain healthy inventory levels.
Refinements to Fee Application
In response to seller feedback, Amazon is implementing changes to the low inventory fee structure, effective May 15, to mitigate the impact on sellers, particularly in scenarios beyond their control. The adjustments are as follows:
- Products with fewer than 20 units sold in the past week will be exempt from the fee, acknowledging the challenges of predicting inventory needs for low-volume items.
- Sellers will be credited for fees resulting from excessive inbound processing times attributable to Amazon, with credits for May charges to be processed by June 15.
- A temporary exemption from the fee will be granted for items featured in Prime Day 2024 promotions, covering the four weeks after the event to account for potential inventory fluctuations.
These updates reflect Amazon’s commitment to balancing its operational needs with seller capabilities, as the company continues to refine its regional fulfillment strategy to enhance delivery performance and in-stock availability.
Industry Response
The e-commerce community, including agencies like Hinge Commerce, has welcomed Amazon’s adjustments, particularly the grace period following Prime Day. This acknowledgment of the potential for low inventory levels post-event addresses one of the primary concerns associated with the new fee, signaling Amazon’s willingness to collaborate with sellers for mutual benefit.
