Update to low-inventory-cost coverage fee (Pan-EU)

Announcement reposted from Amazon Europe:

In December 2023, we announced our plans to launch a low-inventory-cost coverage fee (Pan-EU) to improve Inventory Health and maintain sufficient inventory levels. Having sufficient inventory that is spread across our fulfilment network ensures that we have enough product close to customers so that we can deliver it faster. We’ve seen that when products have sufficient inventory levels, they will, on average, generate measurably more sales.

On April 1, 2024, the Fulfilment by Amazon low-inventory-cost coverage fee (Pan-EU) went into effect and we announced any low-inventory-cost coverage fees (Pan-EU) charged in April would be credited back. We’re extending this transition period until May 14. By May 31, you’ll be credited back for any low-inventory-cost coverage fees (Pan-EU) 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 this low-inventory-cost coverage fee (Pan-EU) 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 from May 15, the low-inventory-cost coverage fee (Pan-EU) will not apply to Pan-European FBA FNSKUs with less than 20 weekly units sold in the last 7 days across Pan-European FBA stores in Germany, France, Italy and Spain. This will replace the current exemption for Pan-European FBA FNSKUs with less than five average weekly units sold in the last 30 days across Pan-European FBA stores in Germany, France, Italy and Spain.
  2. Low-inventory-cost coverage fees (Pan-EU) 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-cost coverage fees (Pan-EU) 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.

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 Fulfilment by Amazon inventory to track your Inventory Health and identify products at risk of incurring low-inventory-cost coverage fees (Pan-EU). Additionally, to estimate the low-inventory-cost coverage fee (Pan-EU) for affected products, go to Fulfilment by Amazon Revenue Calculator. To review historical charges for each product, go to SKU Economics report.

For more information on the Fulfilment by Amazon low-inventory-cost coverage fee (Pan-EU) and what qualifies, go to Low-inventory-cost coverage fee (Pan-EU). For fee updates by type, go to 2024 EU fee changes summary.