Amazon Responds to Seller Feedback, Announces Changes to Pan-EU Low Inventory Fee
Sellers Now Have Until May 14th Before New Pan-EU Fee Takes Effect
By Staff Writer
Amazon announced in an official Seller Central post that it is extending the transition period for its new low-inventory-cost coverage fee for sellers using the Pan-European Fulfilment by Amazon (FBA) program. The fee, implemented to encourage sellers to maintain sufficient inventory levels spread across Amazon's European fulfilment network, was initially set to take effect on April 1st. However, Amazon has now extended the transition period to May 14th.
"We've continued to listen to your feedback and are making three additional changes that are designed to better target this low-inventory-cost coverage fee (Pan-EU) to where you have the most control to ensure healthy inventory", said Amazon.
Any low-inventory-cost coverage fees incurred by Pan-EU FBA sellers between April 1st and May 14th will be credited back by May 31st. In response to seller feedback, Amazon says this extended transition period is meant to give sellers more time to familiarize themselves with the new fee and associated inventory management tools.
Three Key Changes to Low-Inventory-Cost Coverage Fee
In addition to the transition period extension, Amazon revealed three key changes to the new Pan-EU fee, also based on seller feedback:
1. Starting May 15th, the low-inventory fee will not apply to Pan-EU FBA products with less than 20 weekly units sold in the last seven days across Amazon's stores in Germany, France, Italy and Spain. This replaces the previous exemption threshold of less than five average weekly units sold in the last 30 days.
2. Low-inventory fees resulting from delays caused by Amazon itself or Amazon-managed services will be credited back to sellers by the 15th of the month.
3. A time-bound exception will be made for products included in Prime-exclusive Lightning Deals and Best Deals to aid sellers around the key Prime Day shopping event. The fee will not apply to these products for four weeks after Prime Day 2024.
Tools to Manage Inventory Health and Estimate Fees
Amazon highlighted tools available to help Pan-EU FBA sellers track inventory levels and estimate the potential impact of the new fee. The Fulfilment by Amazon inventory tool can identify products at risk of incurring low-inventory fees. The Fulfilment by Amazon Revenue Calculator provides fee estimates for affected products. The SKU Economics report allows a review of historical fee charges per product.
Amazon said these changes come as part of its continued partnership with and innovation on behalf of sellers. The aim is to collaboratively get products to customers faster by ensuring sufficient and well-distributed inventory levels across the European fulfilment network.
More details on the fee, including products affected and calculation methodology, can be found on the Low-inventory-cost coverage fee (Pan-EU) help page within Seller Central.
Also Read: Amazon to Require Annual Verification of Seller Information Under New INFORM Act
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
By Staff Writer
Amazon announced in an official Seller Central post that it is extending the transition period for its new low-inventory-cost coverage fee for sellers using the Pan-European Fulfilment by Amazon (FBA) program. The fee, implemented to encourage sellers to maintain sufficient inventory levels spread across Amazon's European fulfilment network, was initially set to take effect on April 1st. However, Amazon has now extended the transition period to May 14th.
"We've continued to listen to your feedback and are making three additional changes that are designed to better target this low-inventory-cost coverage fee (Pan-EU) to where you have the most control to ensure healthy inventory", said Amazon.
Any low-inventory-cost coverage fees incurred by Pan-EU FBA sellers between April 1st and May 14th will be credited back by May 31st. In response to seller feedback, Amazon says this extended transition period is meant to give sellers more time to familiarize themselves with the new fee and associated inventory management tools.
Three Key Changes to Low-Inventory-Cost Coverage Fee
In addition to the transition period extension, Amazon revealed three key changes to the new Pan-EU fee, also based on seller feedback:
1. Starting May 15th, the low-inventory fee will not apply to Pan-EU FBA products with less than 20 weekly units sold in the last seven days across Amazon's stores in Germany, France, Italy and Spain. This replaces the previous exemption threshold of less than five average weekly units sold in the last 30 days.
2. Low-inventory fees resulting from delays caused by Amazon itself or Amazon-managed services will be credited back to sellers by the 15th of the month.
3. A time-bound exception will be made for products included in Prime-exclusive Lightning Deals and Best Deals to aid sellers around the key Prime Day shopping event. The fee will not apply to these products for four weeks after Prime Day 2024.
Tools to Manage Inventory Health and Estimate Fees
Amazon highlighted tools available to help Pan-EU FBA sellers track inventory levels and estimate the potential impact of the new fee. The Fulfilment by Amazon inventory tool can identify products at risk of incurring low-inventory fees. The Fulfilment by Amazon Revenue Calculator provides fee estimates for affected products. The SKU Economics report allows a review of historical fee charges per product.
Amazon said these changes come as part of its continued partnership with and innovation on behalf of sellers. The aim is to collaboratively get products to customers faster by ensuring sufficient and well-distributed inventory levels across the European fulfilment network.
More details on the fee, including products affected and calculation methodology, can be found on the Low-inventory-cost coverage fee (Pan-EU) help page within Seller Central.
Also Read: Amazon to Require Annual Verification of Seller Information Under New INFORM Act
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
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Amazon is the registered trademark of the e-commerce brand.
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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.
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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.