Hi.
May I ask regarding the new low inventory fee… how will amazon determine that you have low inventory?
Also, how about if you dont have plan to sell that item anymore ao you will not be replenish8ng anymore… how is that?
Thank you so much for your insights!
Oh gosh, I have the same questions. I was thinking that we might have to close the listings we don’t replenish.
I read yesterday that you are supposed to have inventory for 28 days which Amazon calculates based on historic sales data.
Seller Central - Inventory- Fba Inventory - filter by “days in stock” High to Low - scroll down until you see asins with stock in the Fc and from here you can on which asins you are going to be charged low inventory level fee
So it will be charge when each item will low inventory get sells. ?
So inventory with ZERO unit is safe ? Right ?
So let say 10 is minimum units to send, send it 10 and we are good ?
Or what if one unit got sold , 9 units left , minimum was 10, we get charged low inventory fee ?
I try as much as I can to go through my listings once a week to review them and eventually to manually increase or drop the price. But now, with this low inventory level fee, we should pay a lot of attention to the ASINs that have tanked and not panic because I believe it will become the norm to get rid of stock when you have below 28 days. Of course, this will be impacted by the profit per sale. If there is a good profit, then this will be less affected, but ASINs with low profit will be the most affected as the sellers will try to avoid paying the fee for low inventory.
But remember, by having them tank the price, the sales are going to increase, and they will be OOS and the price will bounce back up . We will see fewer and fewer people replenishing 5-10 units (unless there is a good profit that can cover the low inventory fee and make it worthwhile), or if someone jumps in, they will jump in with stock (+28 days in stock).
Here, you have an example of a listing which tanked to my breakeven, and I see this trend across many listings (the new norm)
Anyway, to wrap up, when something is tanking, check if the reason is people getting rid of stock due to less than 28 days. If yes, then it might be worth keeping the price and selling at a higher price later.
Of course, every listing is different, so it has to be analyzed accordingly.
Very smart of Amazon , so the days in stock is at the PARENT ASIN level so be careful with the slow selling variations
Hold on , is at the sku level too???
I might be wrong as most of the time but I believe that in 2-4 months, we will see a huge increase in prices across many listings, especially the cheap items, due to fewer competitors.
Even if we have the same amount of competitors or even more, I expect the prices to go up due to low-level inventory fees.
This has to be absorbed somehow by someone and usually is the end consumer
As it should be. Amazon is a convenience marketplace not a bargain basement. If buyers want clearance prices they can walk their happy asses to Walmart or big lots and get it themselves.
Sellers have to build these fees into their price and their repricer. A lot of them won’t thus prices probably won’t go up.
The issue is alot of sellers especially new ones don’t understand the fee structure. It is like hmrc tax system, no one understand what it is. So you don’t know until it is too late. Not everyone can use 3rd party softwares.
Wow. I foresee a class action lawsuit, many sellers leaving Amazon, and their stock nose-diving.
Parent asin level could be considered an unfair business practice.
I believe that Amazon doesn’t really care about any lawsuits, fines, etc. Right now, they have access to an infinite amount of money by increasing some fees here and there by 0.1, and they’ve already made billions , so they can afford to pay any fine and what is left for us is to try to survive in the jungle
Valid points !!!
Sellers have to build these fees into their price and their repricer. A lot of them won’t thus prices probably won’t go up
