How do you guys manage the low-level inventory fee from Amazon?

Amazon requires us to keep stock for at least 28 days but in wholesale, we can’t always do that…

Especially when suppliers go out of stock or for seasonal items with temporary hikes in sales and it won’t make sense to restock based on Amazon’s recommendation and get stuck in huge inventory.

Any suggestions?

I used to add .25 per pound in software. With the new placement fees and low inventory, I use $1 per pound.

I also don’t buy anything with under 30% roi and under $3 profit.


Yeah, this would help eliminate the loss but would not work to accurately calculate the profit. I am selling a product that is selling 3,000 units per month, but after September, it will drop back to 500 units per month. Amazon would recommend restocking at 1,000+ units or charge a low-level fee per missing unit. How would you factor that in?

What I have done is to add an extra 0.6 in the analyzing software (SAS and SAA) to try to cover any potential low-level inventory fee. Maybe it’s not the best solution, but this way I encourage my team to source more profitable products.

When you get hit by a low inventory fee, you either increase the price to cover the fee or just take the loss, considering that you did not replenish in time for whatever reason. There is software that sends alerts when you get hit by a low-level inventory fee, or you can check in Seller Central.


It won’t work out because amazon charge per unit based on recommendation and we add fee to units we sell.

Or just focus on more expensive items so u do not get affected to much by this fee.

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Yeah, this is better option.