Announcement reposted from Amazon Europe:
As announced in December 2023, the FBA low-inventory cost coverage fee (Pan-EU) will go into effect on April 1, 2024. This fee applies to products with consistently low levels of inventory relative to their unit sales, which is also referred to as your historical days of supply. Maintaining sufficient inventory levels allows Amazon to effectively distribute products across our fulfilment network, which improves shipping speeds for customers and helps drive more sales for you.
We have heard feedback from a number of sellers that they are still uncertain what the exact effect of this fee will be on their business. To help you better see how this affects your business in real time, we will provide a transition period during the month of April.
We will still charge the FBA low-inventory cost coverage fees (Pan-EU) incurred between April 1 and April 30, but after the end of the month, we will credit your account for all low-inventory cost coverage fees (Pan-EU)charged during this period. Our goal is for you to see the end-to-end experience, and understand how this may affect your business so you can further update your inventory management to maintain sufficient inventory levels, drive greater sales and avoid the fee in the future.
How it will work
Starting April 1, the transition period will begin. You will still be charged the fee on eligible products shipped with historical days of supply below 28 days. Then, we will credit back any charged low-inventory cost coverage fees (Pan-EU) for units shipped between April 1 and April 30. You can expect to see this credit in May.
Starting May 1, the fee will be charged without a credit back. You can avoid the fee by ensuring that either the long-term historical days of supply (last 90 days) or short-term historical days of supply (last 30 days) are above 28 days (4 weeks). April will give you an opportunity to understand if your current inventory management actions will effectively avoid the fee or if there are adjustments you can make to avoid this fee so you’re prepared going forward.
For more information on the low-inventory cost coverage fee (Pan-EU) and what qualifies, go to Low-inventory cost coverage fee (Pan-EU).
Thank you for your continued partnership.