Account health, ads, inventory and fulfilment · The cost of running too lean
Low-inventory-level fee
A fee for keeping historical days of supply below the threshold on standard-size products. Stockouts now have a second cost.
Key facts
| What it is | A per-unit fee when historical days of supply falls below the published threshold |
|---|---|
| Measure | Historical days of supply, based on recent sales and inventory levels, not a single day's snapshot |
| Scope | Standard-size products in the US marketplace under the published programme; check current details |
| Why it exists | Amazon wants inventory positioned to meet demand, not arriving after the sale |
| Trade-off | More stock protects service but ties up cash and can attract storage or aged-inventory fees |
| Official source | Amazon low-inventory-level fee help page and fee schedule |
Stockouts now have a second cost
The fee changes the economics of lean inventory. A seller who keeps just enough stock to avoid storage fees can now pay a per-unit penalty when supply dips below the threshold. The cheapest inventory policy is no longer the one with the lowest average stock.
The measure is historical days of supply, so a single low week can affect the calculation for a period. Seasonal products need a plan that covers the ramp, not just the peak.
The 28-day line
The published threshold is commonly described as 28 days of historical supply, with the fee applying below it. Treat the exact number and fee as schedule-dependent and verify in Seller Central.
Balance three costs: the low-inventory fee, storage and aged surcharge, and the cash cost of holding stock. For fast sellers, more stock is usually right. For slow or seasonal SKUs, the fee may be cheaper than a year of storage.
Frequently asked questions
Which products are covered?
The programme applies to standard-size products in the US marketplace under the published rules. Oversize and other marketplaces have their own treatment.
How do I avoid the fee?
Keep historical days of supply above the threshold through better replenishment. The restock calculator can model days of cover from sales and lead time.
Does it stack with storage fees?
Yes. It is a separate line. Holding more inventory can reduce this fee while increasing storage and aged-inventory costs.
Is the threshold always 28 days?
The threshold and fee are published in the fee schedule and can change. Use the current schedule for a decision, not a remembered number.
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