Amazon Introduces New Low-Inventory Cost Coverage Fee for EU Sellers, Effective April 1
Amazon EU Sellers to Face New Low-Inventory Cost Coverage Fee
By ChannelMAX Staff Writer
Mar-2024#21
In a move that will significantly impact sellers using the Pan-European FBA program, Amazon has announced the implementation of a new fee structure aimed at addressing the challenges of low inventory levels. The Low-Inventory Cost Coverage Fee (Pan-EU) is set to take effect from April 1, 2024, and will apply to standard-size units that are shipped across Germany, France, Italy and Spain.
Understanding the Fee Application
The Low-Inventory Cost Coverage Fee will be applied to products that have historical inventory levels below 28 days of supply when compared to historical demand. This assessment is based on both long-term (90 days) and short-term (30 days) inventory metrics. If both metrics fall below the 28-day threshold, the fee will be charged.
Exemptions to the Rule
Not all sellers will be subject to this new fee. Exemptions are in place for new sellers who have recently joined the Pan-European FBA program, listings for new products, and products that have a low sales volume. This provides some relief for those still acclimating to the Amazon EU marketplace or those dealing with niche products.
Fee Calculation Details
The amount of the Low-Inventory Cost Coverage Fee is determined by the product's size tier and its historical days of supply. Sellers can find detailed rates in the Fee Details section of Amazon's help page, allowing them to anticipate and plan for these costs.
Also Read: Amazon India Announces Fee Updates Effective April 7, 2024
Monitoring and Mitigation Strategies
Sellers can monitor their historical days of supply through the Fulfilment by Amazon inventory page. By keeping an eye on these metrics and making necessary adjustments to inventory levels, sellers can mitigate or even avoid incurring the Low-Inventory Cost Coverage Fee.
How to Check Your Inventory Metrics
To access the historical days of supply metric, sellers should navigate to the Fulfilment by Amazon inventory page and click on "Details" in the Historical Days of Supply column. This feature provides sellers with the data they need to make informed decisions about their inventory management.
In conclusion, the introduction of the Low-Inventory Cost Coverage Fee (Pan-EU) is a significant change for Amazon EU sellers. By staying informed and proactively managing inventory levels, sellers can adapt to this new fee structure and continue to thrive in the Pan-European FBA program. For a comprehensive overview of all 2024 EU selling fee changes, sellers are encouraged to visit the 2024 EU Fee Changes Summary page provided by Amazon.
Also Read: Amazon Introduces 'Prefer Small and Medium Enterprises' Feature in UK
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
By ChannelMAX Staff Writer
Mar-2024#21
In a move that will significantly impact sellers using the Pan-European FBA program, Amazon has announced the implementation of a new fee structure aimed at addressing the challenges of low inventory levels. The Low-Inventory Cost Coverage Fee (Pan-EU) is set to take effect from April 1, 2024, and will apply to standard-size units that are shipped across Germany, France, Italy and Spain.
Understanding the Fee Application
The Low-Inventory Cost Coverage Fee will be applied to products that have historical inventory levels below 28 days of supply when compared to historical demand. This assessment is based on both long-term (90 days) and short-term (30 days) inventory metrics. If both metrics fall below the 28-day threshold, the fee will be charged.
Exemptions to the Rule
Not all sellers will be subject to this new fee. Exemptions are in place for new sellers who have recently joined the Pan-European FBA program, listings for new products, and products that have a low sales volume. This provides some relief for those still acclimating to the Amazon EU marketplace or those dealing with niche products.
Fee Calculation Details
The amount of the Low-Inventory Cost Coverage Fee is determined by the product's size tier and its historical days of supply. Sellers can find detailed rates in the Fee Details section of Amazon's help page, allowing them to anticipate and plan for these costs.
Also Read: Amazon India Announces Fee Updates Effective April 7, 2024
Monitoring and Mitigation Strategies
Sellers can monitor their historical days of supply through the Fulfilment by Amazon inventory page. By keeping an eye on these metrics and making necessary adjustments to inventory levels, sellers can mitigate or even avoid incurring the Low-Inventory Cost Coverage Fee.
How to Check Your Inventory Metrics
To access the historical days of supply metric, sellers should navigate to the Fulfilment by Amazon inventory page and click on "Details" in the Historical Days of Supply column. This feature provides sellers with the data they need to make informed decisions about their inventory management.
In conclusion, the introduction of the Low-Inventory Cost Coverage Fee (Pan-EU) is a significant change for Amazon EU sellers. By staying informed and proactively managing inventory levels, sellers can adapt to this new fee structure and continue to thrive in the Pan-European FBA program. For a comprehensive overview of all 2024 EU selling fee changes, sellers are encouraged to visit the 2024 EU Fee Changes Summary page provided by Amazon.
Also Read: Amazon Introduces 'Prefer Small and Medium Enterprises' Feature in UK
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.