The Low-Inventory-Level Fee Trap (2026 Update)

Amazon wants you to store just enough inventory—not too much, not too little.

Store too much? Aged inventory surcharges.

Store too little? Low-inventory-level fees.

The "safe zone" between these two penalties is a narrow 30-60 day window that shifts based on your sales velocity. Miss it, and you're paying Amazon either way.

Here's the problem: most sellers don't even realize they're being charged.

The fee doesn't show up as its own line item in your payments dashboard. You have to dig into the SKU Economics report to find it. When sellers finally do, they often discover hundreds or thousands of dollars quietly deducted each month. One seller reported a single SKU eating 10% of that product's revenue in low-inventory fees alone.

The Fee Just Got Worse (January 2026)

Two changes made this fee hit harder:

1. Expanded to bulky items. Furniture, large appliances, and oversized products are now included.

2. Calculated at the FNSKU level. Previously measured by parent ASIN. Now each variation is tracked separately. Sell t-shirts in five colors? Each color gets its own calculation. Your blue variant could be fine while your red variant racks up fees.

What This Guide Covers

• How the fee works — the 28-day threshold and the one loophole that can save you
• 5 traps that trigger unexpected charges (including one tied to split shipments)
• Who's exempt — including one option that gives you 100% immunity
• 6 strategies to stay in the safe zone without overcomplicating your operations
• Where to find the fee in Seller Central and how to audit what you've already paid

Whether you're doing retail arbitrage, online arbitrage, or wholesale—this fee hits the moment you use FBA.

Let's make sure you stop paying it.

How the Fee Actually Works

The 28-Day Rule

Amazon tracks how many days of inventory you have on hand relative to your sales velocity. This metric is called historical days of supply.

The formula is simple:

Average daily inventory ÷ Average daily units shipped = Historical days of supply

Example: You have 400 units in stock on average. You ship 10 units per day on average. Your historical days of supply is 40 days (400 ÷ 10 = 40).

Drop below 28 days, and Amazon starts charging you a fee on every unit sold.

The Two-Window Calculation

Here's where it gets tricky. Amazon doesn't just look at one time period—it looks at two:

• Short-term: Last 30 days
• Long-term: Last 90 days

You only get charged if BOTH windows fall below 28 days.

This is actually your escape hatch. If your 30-day supply is at 20 days but your 90-day supply is at 35 days, you're safe. No fee.

But if both numbers dip below 28? The fee kicks in on every unit you sell until you climb back above the threshold.

How Much You'll Pay

The fee varies based on three factors:

1. Size tier (small standard, large standard, bulky)

2. Shipping weight

3. How far below 28 days you've fallen

The lower your inventory, the higher the fee.

For small standard items (≤16 oz):

• 0–13 days of supply: $0.89/unit
• 14–20 days of supply: $0.63/unit
• 21–27 days of supply: $0.32/unit

For large standard items (≤3 lb):

• 0–13 days of supply: $0.97/unit
• 14–20 days of supply: $0.70/unit
• 21–27 days of supply: $0.36/unit

For large standard items (3+ lb):

• 0–13 days of supply: $1.11/unit
• 14–20 days of supply: $0.87/unit
• 21–27 days of supply: $0.47/unit

At the extreme end—running under 14 days of supply on a large standard product—you're paying nearly $1 extra per unit sold. On a product with thin margins, that can wipe out your profit entirely.

New for 2026: Bulky Items Now Included

Before January 2026, oversized/bulky products were exempt.

Not anymore.

If you sell furniture, fitness equipment, large appliances, or anything in Amazon's "bulky" size tier, you're now subject to this fee. Rates for bulky items run as high as $2.09 per unit at the lowest inventory levels.

New for 2026: FNSKU-Level Calculation

This is the change that's catching variation sellers off guard.

Old system: Amazon calculated days of supply at the parent ASIN level. If you had 10 variations and most were well-stocked, the parent average could keep you safe even if one variation ran low.

New system: Each FNSKU (each individual variation) is calculated separately.

What this means in practice:

• You sell phone cases in 6 colors
• 5 colors have 45 days of supply ✓
• 1 color has 12 days of supply ✗

Under the old system: You'd probably be fine—the parent average would stay above 28.

Under the new system: That one low-stock color gets hit with the $0.89/unit fee on every sale.

If you sell products with multiple variations, you now need to monitor inventory at the individual SKU level—not just the parent.

The Key Takeaway

Keep both your 30-day AND 90-day historical days of supply above 28 days for every FNSKU.

Drop below on both windows, and you'll pay $0.32–$2.09 extra on every unit sold until you restock.

The 5 Traps That Trigger Unexpected Charges

Most sellers don't intentionally let their inventory run low. They get caught by situations that are easy to miss—until the fees show up.

Here are the five most common traps.

Trap #1: The Split Shipment Problem

You create a shipment. Amazon wants to send it to four different fulfillment centers.

You have two choices:

1. Ship to all four locations — no Inbound Placement Fee, but higher shipping costs and more complexity

2. Ship to one location — pay the Inbound Placement Fee (sometimes $0.27–$1.58+ per unit)

Many sellers choose option one to avoid the placement fee. Smart move, right?

Not always.

When you split shipments across multiple locations, your inventory arrives at different times. Some boxes sit in transit longer. Some get checked in faster than others.

During that window, your "available" inventory in Seller Central drops—even though the units technically exist. If this drags your historical days of supply below 28 on both windows, the low-inventory fee kicks in.

The math can work against you. One seller reported saving $200 on placement fees but getting hit with $450 in low-inventory fees because their shipments took too long to fully check in.

Trap #2: The Receiving Delay

You shipped your inventory two weeks ago. Tracking shows it arrived at the fulfillment center.

But in Seller Central? Still not available.

Amazon's receiving process can take 2–4 weeks during normal periods—and longer during Q4 or after fee changes when everyone's rushing to restock.

Your inventory is physically sitting in Amazon's warehouse, but it doesn't count toward your days of supply until it's checked in and marked "available."

The fix: Factor in a 2–3 week receiving buffer when planning your restock timing. If you wait until you hit 30 days of supply to send more inventory, you're already too late.

Trap #3: The Inventory Limit Ceiling

Sometimes you want to send more inventory. Amazon won't let you.

This happens when:

• Your IPI score drops below 400 — Amazon restricts your storage capacity
• You're selling HAZMAT or restricted products — tighter limits apply
• You're a newer seller — lower initial capacity allocation

You're stuck watching your days of supply tick down, unable to replenish, while the fee stacks up.

The fix: If you're bumping against capacity limits, consider using AWD (Amazon Warehousing & Distribution) or a third-party 3PL to hold buffer stock. You can drip-feed inventory into FBA without exceeding your limits.

Trap #4: The Seasonal or Phase-Out Problem

You're discontinuing a product. Or it's seasonal and demand just dropped off a cliff.

Either way, you've got leftover inventory sitting in FBA—and you're not restocking.

Here's the catch: you'll still get charged the low-inventory fee on units that sell, even if you have no intention of replenishing.

Amazon doesn't care about your strategy. If your days of supply is below 28 and you make a sale, the fee applies.

The fix: For products you're phasing out, consider:

• Running a sale or promotion to clear inventory faster
• Creating a removal order to pull units back
• Switching to FBM for the remaining units (no low-inventory fee applies to merchant-fulfilled orders)

Trap #5: The Variation Blindspot

This one is new for 2026—and it's catching a lot of variation sellers off guard.

Under the old system, Amazon measured days of supply at the parent ASIN level. Your variations were averaged together. If most were well-stocked, a single low-stock variant might not trigger the fee.

Now Amazon measures at the FNSKU level. Each variation stands alone.

Example:

You sell a product in 8 colors. You track inventory at the parent level and everything looks healthy. But buried in your variations:

• 6 colors: 40+ days of supply ✓
• 1 color: 22 days of supply ✗
• 1 color: 18 days of supply ✗

Those two underperforming colors are now racking up fees every time they sell—and you might not notice until you run the SKU Economics report.

The fix: Set up FNSKU-level monitoring. Don't rely on parent ASIN views anymore. Check the "Historical days of supply" column on your FBA Inventory page and filter by individual SKUs.

Quick Recap: The 5 Traps

1. Split shipments — inventory in transit doesn't count toward your days of supply

2. Receiving delays — 2–4 week check-in times can tank your metrics

3. Inventory limits — you can't restock even if you want to

4. Seasonal/phase-out — leftover inventory still triggers fees when it sells

5. Variation blindspot — each FNSKU is now tracked separately (new for 2026)

Who's Exempt (and How to Qualify)

Not everyone pays this fee. Amazon has carved out several exemptions—and one of them gives you 100% immunityif you set it up correctly.

Here's who's off the hook.

Exemption #1: New Sellers (First 365 Days)

Just started selling on Amazon?

You get a full year free from the low-inventory-level fee. The clock starts when your first FBA shipment is received at a fulfillment center.

This grace period exists because Amazon knows new sellers need time to figure out their sales velocity, learn the restock rhythm, and build up capital for inventory.

Action item: If you're within your first year, don't stress about this fee yet. Focus on learning your sell-through rates so you're ready when the exemption ends.

Exemption #2: New Products (First 180 Days)

Launching a new product? Each new parent ASIN gets a 180-day grace period before the fee applies.

There's one catch: you need to be enrolled in the FBA New Selection program to qualify.

The program is free to join and offers other benefits too—like free monthly storage and free liquidations for eligible new-to-FBA ASINs.

Action item: Before launching any new product, enroll it in the FBA New Selection program. You'll get 6 months to gather sales data and dial in your inventory levels before the fee kicks in.

Exemption #3: Low-Velocity Products (<20 Units/Week)

Selling a slower-moving product? You might be exempt.

As of May 2024, Amazon excludes products that have sold fewer than 20 units in the past 7 days from the low-inventory-level fee.

The logic: slow-moving inventory is harder to predict. Amazon gives you a pass because maintaining exactly 28 days of supply on a product that sells 2 units per week is unrealistic.

Important: This exemption is automatic. You don't need to apply. But it also means the exemption can disappear overnight if your sales spike above 20 units in a 7-day window.

Exemption #4: Out of Stock (Completely)

Here's a weird one: if you're completely out of stock, you don't pay the fee.

The fee only applies when you sell a unit while below the 28-day threshold. No sales = no fee.

This isn't a strategy—going out of stock kills your ranking and costs you the Buy Box. But it's worth knowing that the fee stops the moment your inventory hits zero.

Exemption #5: Amazon-Caused Delays

If Amazon's own systems caused your inventory to run low, you may get a credit.

This includes:

• Receiving delays at fulfillment centers
• Lost or damaged inventory (that Amazon is responsible for)
• Issues with Amazon-managed shipments (like AWD transfers)

Amazon says they'll automatically apply credits by the 15th of the month following the charge. But "automatically" doesn't always mean "reliably."

Action item: If you believe a delay was Amazon's fault, document everything—shipment IDs, tracking info, dates received vs. dates checked in. Open a case in Seller Central if the credit doesn't appear.

Exemption #6: AWD Auto-Replenishment (100% Immunity)

This is the big one.

If you use Amazon Warehousing & Distribution (AWD) and turn on auto-replenishment, your enrolled ASINs are completely exempt from the low-inventory-level fee.

Here's how it works:

1. You store bulk inventory at an AWD facility (Amazon's upstream warehouse network)

2. You enable auto-replenishment for your ASINs

3. Amazon automatically transfers stock from AWD to FBA fulfillment centers when you're running low

4. Those ASINs never get charged the low-inventory fee—period

The fine print: To maintain the exemption, at least 70% of your FBA replenishment for that ASIN must come through AWD auto-replenishment. If you manually send inventory outside of AWD too often, you could lose the benefit.

Is AWD right for you? It works best for sellers moving consistent volume who can ship in bulk (pallets or containers). Storage rates are often cheaper than FBA, but you'll need to factor in the cost of shipping to AWD in the first place.

Action item: Check the FBA Surcharge Waiver Status Report in Seller Central to see if you're hitting the 70% auto-replenishment threshold for enrolled ASINs.

Exemption #7: Grocery Products

As of January 2026, products in the Grocery category are exempt from the low-inventory-level fee.

Amazon recognizes that grocery items have unique inventory challenges—shorter shelf life, expiration dates, and more variable demand.

If you sell grocery, this one's automatic. No action needed.

6 Strategies to Stay Above 28 Days

You know how the fee works. You know the traps. Now let's talk about how to stay out of the danger zone.

These six strategies range from simple habit changes to more involved operational shifts. Start with what fits your business today.

Strategy #1: Target the 35–55 Day Sweet Spot

The fee triggers at 28 days. But aiming for exactly 28 days is playing with fire.

Why?

• A surprise sales spike can tank your days of supply overnight
• Receiving delays can leave you short even when inventory is "on the way"
• Amazon's calculation updates weekly—you don't get real-time warnings

Instead, target 35–55 days of supply as your baseline.

This gives you a buffer above the 28-day threshold without pushing you into long-term storage fee territory (which starts at 180+ days). It's the sweet spot where you're safe from both penalties.

Quick math: If you sell 10 units per day, aim to keep 350–550 units in FBA at all times.

Strategy #2: Use AWD + Auto-Replenishment for Full Immunity

If you want to eliminate this fee entirely, AWD auto-replenishment is the cleanest solution.

Here's the setup:

1. Ship bulk inventory to an AWD facility

2. Enable auto-replenishment for your ASINs

3. Amazon handles the FBA transfers automatically

4. Your enrolled ASINs become 100% exempt from the low-inventory fee

Best for: Sellers with consistent, predictable demand who can ship in pallet or container quantities.

Not ideal for: Arbitrage sellers with one-off buys, or anyone with highly variable SKU counts.

Watch out for: You need to maintain a 70% auto-replenishment ratio (ARR) to keep the exemption. If you manually send too much inventory outside AWD, you'll lose the benefit.

Strategy #3: The 3PL "Drip Feed" Method

Don't want to use AWD? A third-party logistics provider (3PL) can serve a similar purpose—without locking you into Amazon's ecosystem.

Here's how it works:

1. Store your bulk inventory at a 3PL warehouse

2. Send smaller, more frequent shipments to FBA (weekly or bi-weekly)

3. Keep your FBA levels in the 35–55 day range at all times

The benefits:

• 3PL storage is often cheaper than FBA storage
• You control the timing and quantities of each replenishment
• You're not dependent on Amazon's auto-replenishment algorithm
• Works for arbitrage, wholesale, and private label

The tradeoff: More hands-on management. You'll need to monitor your days of supply and trigger shipments manually (or set up alerts).

Pro tip: Many 3PLs offer FBA prep services too—labeling, poly bagging, bundling. This is especially valuable now that Amazon discontinued their in-house FBA prep services in January 2026.

Strategy #4: Weekly FNSKU-Level Monitoring

The 2026 change to FNSKU-level calculation means you can't just glance at parent ASIN totals anymore.

Set up a weekly inventory audit:

1. Go to Inventory → FBA Inventory in Seller Central

2. Add the "Historical days of supply" column to your view

3. Sort by lowest days of supply first

4. Look for any individual FNSKU approaching or below 28 days

What to watch for:

• Variations selling faster than expected
• SKUs where a recent shipment hasn't checked in yet
• Products nearing the 28-day line that need an immediate restock

Time required: 15–30 minutes per week for most catalogs. More if you have hundreds of SKUs.

Pro tip: Export the data to a spreadsheet and set up conditional formatting to highlight anything under 35 days. Makes problem SKUs impossible to miss.

Strategy #5: Hybrid FBA/FBM for At-Risk SKUs

Some products just aren't worth the low-inventory fee risk.

Maybe it's a slow mover with unpredictable demand. Maybe it's a product you're phasing out. Maybe your margins are so thin that an extra $0.50/unit wipes out your profit.

For these SKUs, consider switching to Fulfilled by Merchant (FBM).

The low-inventory fee only applies to FBA. Merchant-fulfilled orders are completely exempt.

When FBM makes sense:

• Low-velocity products (<20 units/week, but you're close to the threshold)
• Products you're discontinuing
• Oversized or bulky items where the fee now reaches $2.09/unit
• SKUs with thin margins that can't absorb extra fees

The tradeoff: You lose the Prime badge (unless you qualify for Seller Fulfilled Prime). For some products, that's a dealbreaker. For others—especially low-competition niches—it barely matters.

Strategy #6: Seasonal Planning (Send Early, Not Just-in-Time)

If you sell seasonal products, the low-inventory fee requires a mindset shift.

The old approach: Wait until demand picks up, then send inventory.

The problem: By the time demand spikes, your days of supply is already tanking. Add in a 2–3 week receiving delay, and you're paying fees for weeks before your inventory even becomes available.

The new approach: Send seasonal inventory 4–6 weeks before peak demand.

Yes, you'll pay a bit more in storage fees. But storage fees are pennies compared to the low-inventory fee—especially at the 0–13 day tier where you're paying $0.89–$1.11 per unit sold.

Example: You sell Halloween costumes. Demand spikes in October.

• Old approach: Send inventory in late September → receiving delays push availability to mid-October → you're in the 0–13 day tier during your highest-volume weeks
• New approach: Send inventory in early September → fully checked in by late September → you're stocked at 40+ days when the rush hits

Quick Recap: 6 Strategies

1. Target 35–55 days — build a buffer above the threshold

2. AWD auto-replenishment — 100% fee immunity for enrolled ASINs

3. 3PL drip feed — store bulk externally, send smaller shipments to FBA

4. Weekly FNSKU monitoring — catch low-stock variations before fees hit

5. Hybrid FBA/FBM — move at-risk SKUs to merchant-fulfilled

6. Send seasonal inventory early — 4–6 weeks before peak, not just-in-time

How to Find and Audit Your Fees

The low-inventory-level fee doesn't show up in your payments summary. It's buried in reports most sellers never open.

Here's exactly where to find it—and how to audit what you've already paid.

Where the Fee Hides

Amazon adds this fee to your FBA fulfillment fee for each unit sold. It's not broken out as a separate line item in your transaction view.

To see it, you need to access specific reports.

Method #1: SKU Economics Report

This is the most detailed view of what you're paying per SKU.

How to access it:

1. Go to Reports → Business Reports

2. Click SKU Economics

3. Under "Report Options," check both of these boxes:

• Fee Data
• Fulfillment base rate and surcharges

4. Generate the report

What to look for:

The report breaks down every fee component by SKU. Look for the "Low-inventory-level fee" column.

Sort by this column (highest to lowest) to see which SKUs are costing you the most.

Pro tip: Export to Excel or Google Sheets. Sum the low-inventory-level fee column to see your total exposure. Many sellers are shocked to find they're paying hundreds or thousands per month without realizing it.

Method #2: FBA Inventory Page

This view shows your current risk—not what you've already paid, but what's about to cost you.

How to access it:

1. Go to Inventory → FBA Inventory

2. Click Preferences (gear icon)

3. Add the "Historical days of supply" column to your view

4. Apply changes

What to look for:

Sort by "Historical days of supply" (lowest first). Anything under 28 days is actively being charged. Anything under 35 days is in the danger zone.

Filtering tip: Use the search filters to show only items below a certain threshold. This lets you quickly isolate problem SKUs without scrolling through your entire catalog.

Method #3: FBA Inventory Age Report

This report is typically used for aged inventory surcharges, but it also helps you see inventory health at a glance.

How to access it:

1. Go to Reports → Fulfillment

2. Under Inventory, select FBA Inventory Age

3. Download the report

What to look for:

Cross-reference this with your days of supply data. You're looking for SKUs that fall into two buckets:

• Too low: Under 28 days of supply (low-inventory fee risk)
• Too high: Over 180 days of supply (aged inventory surcharge risk)

Everything in between is your safe zone.

Method #4: FBA Surcharge Waiver Status Report

Using AWD auto-replenishment? This report tells you if you're hitting the 70% threshold required to maintain your fee exemption.

How to access it:

1. Go to Reports → Fulfillment

2. Look for FBA Surcharge Waiver Status

3. Download the report

What to look for:

Check your Auto-Replenishment Ratio (ARR) for each enrolled ASIN. If it drops below 70%, you'll lose the low-inventory-level fee exemption for that product.

Setting Up Ongoing Monitoring

Checking reports once isn't enough. This fee can sneak up on you any week your sales velocity changes or a shipment gets delayed.

Build a weekly habit:

• Every Monday: Open FBA Inventory page, sort by historical days of supply, flag anything under 35 days
• Every month: Pull the SKU Economics report, sum your low-inventory fees, compare to previous month

Want to automate it?

Several third-party tools can monitor your days of supply and send alerts when SKUs approach the 28-day threshold. Options include:

• Seller Labs
• SoStocked
• RestockPro
• Forecastly

Most of these tools cost $50–$200/month depending on your SKU count. Whether that's worth it depends on how much you're losing to fees.

DIY alternative: Export your FBA Inventory data weekly to a Google Sheet. Set up conditional formatting to highlight rows where days of supply drops below 35. Takes 15 minutes to set up, costs nothing.

How to Request Credits for Amazon-Caused Delays

If your low days of supply was caused by Amazon—slow receiving, lost inventory, AWD transfer delays—you may be owed a credit.

Amazon says: Credits are applied automatically by the 15th of the following month.

Reality: It doesn't always happen.

If you don't see the credit:

1. Gather your documentation:

• Shipment ID
• Date shipped
• Carrier tracking showing delivery date
• Date inventory became "available" in Seller Central

2. Go to Help → Get Support

3. Open a case under Fulfillment by Amazon → FBA Issue

4. Explain the delay and request a credit for low-inventory-level fees incurred during the receiving window

Be specific. Include dates and shipment IDs. The more documentation you provide, the faster the resolution.

Quick Audit Checklist

Run this audit today:

1. Pull SKU Economics report with fee data enabled

2. Sum the "low-inventory-level fee" column to see total paid

3. Identify your top 5 SKUs by fee amount

4. Check FBA Inventory page for current days of supply

5. Flag any SKU under 35 days for immediate restocking

6. If using AWD, verify your 70% ARR in the Surcharge Waiver report

Conclusion

The Fee Is Avoidable—If You're Paying Attention

The low-inventory-level fee isn't a tax on selling. It's a tax on not tracking your inventory closely enough.

Sellers who ignore it bleed money quietly—$0.32 here, $0.89 there, adding up to hundreds or thousands per month. Sellers who manage it keep that money in their pocket.

The difference comes down to a few habits:

• Knowing your days of supply at the FNSKU level (not just parent ASIN)
• Maintaining a 35–55 day buffer instead of cutting it close
• Factoring in receiving delays when you plan shipments
• Using AWD, a 3PL, or hybrid FBM to give yourself flexibility

None of this is complicated. It just requires a system.

The Real Cost of Ignoring This

Let's put it in perspective.

Say you have 10 SKUs consistently running below 28 days of supply. Each one sells 5 units per day. You're in the 14–20 day tier, paying an extra $0.70 per unit.

That's $35/day. $245/week. Over $1,000/month.

For doing nothing differently—just not restocking fast enough.

Now flip it. Fix your inventory rhythm, stay above 28 days, and that $1,000/month goes back into your business. More inventory. More ad spend. More profit.

Start Here (This Week)

You don't need to overhaul your entire operation today. Start with these three steps:

Pull your SKU Economics report. Check the "low-inventory-level fee" column. See what you've actually been paying.

Open your FBA Inventory page. Sort by historical days of supply. Identify any FNSKU under 35 days.

Restock the at-risk SKUs. Get them above the 28-day threshold before your next weekly calculation.

That's it. One audit, one sort, one restock.

From there, build the weekly habit. Monitor your numbers every Monday. Send shipments before you're desperate, not after.

The Bottom Line

Amazon's fee structure punishes you for having too much inventory and too little. The window between those penalties is narrow—but it's manageable.

Stay in the 35–55 day range. Monitor at the FNSKU level. Use AWD or a 3PL if you need a buffer.

Do that consistently, and this fee becomes a non-issue.

Ignore it, and you'll keep paying a penalty on every unit sold—without even realizing it.