Update: Transition period for FBA Low-Inventory-Level fee

Announcement reposted from Amazon Japan:

As announced in the December 26, 2023 email (subject: Important notice: 2024 JP (Amazon.co.jp) FBA Fee and program changes starting from March 1, 2024), Amazon will introduce a low-inventory-level-fee from May 1, 2024.

To help you better see how this affects your business in real time, we will provide a transition period during the month of May.

We will still charge the FBA low-inventory-level fees incurred between May 1 and May 31 if your products historical days of supply is less than 14 days, but after the end of the month, we will credit your account for all low-inventory-level fees 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 May 1, the transition period will begin. You will still be charged the fee on eligible products shipped with historical days of supply below 14 days. Then, we will credit back any charged low-inventory-level fees for units shipped between May 1 and May 31. You can expect to see this credit by June 30.

Starting June 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 or equal to 14 days. May 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.