If you’re selling on Amazon FBA, staying ahead of Amazon’s evolving fee structures is critical — and in 2025, Low Inventory Level Fees are one of the hottest topics for marketplace sellers. This blog will explain what these fees are, why they exist, how they’re calculated, and most importantly, how you can avoid them while keeping your business profitable.
About e-commerzz.com
At e-commerzz.com, we’re not just another eCommerce service provider — we’re your strategic partner in navigating the complexities of selling on global marketplaces like Amazon, Walmart, eBay, Shopify, and WooCommerce.
Why Choose Us?
- 100+ successful projects delivered
- $10M+ in PPC budgets managed
- 5+ years of hands-on international eCommerce experience
- Strong focus on clear, proactive client communication
- Dedicated to quality, honesty, and long-term success
Founded and led by a seasoned Virtual Assistant with over 5 years of proven expertise in marketplace management across the US, UK, Canada, Australia, and UAE, e-commerzz.com stands for results-driven, trusted, and hardworking services.
What Are Amazon’s Low Inventory Level Fees (2025 Update)?
In 2025, Amazon has made several updates to its Low Inventory Level Fee (LILF) policy for FBA sellers. This fee is applied when a seller consistently maintains low inventory levels relative to customer demand for their products — leading to potential out-of-stock issues, lost sales, and poor customer experience.
Why Did Amazon Introduce This Fee?
Amazon prioritizes a seamless, reliable shopping experience for its customers. If sellers frequently run out of stock, it disrupts fulfillment speed and customer satisfaction. To address this, Amazon penalizes low-inventory sellers to encourage them to maintain healthier, consistent inventory levels in FBA warehouses.
How Are Low Inventory Level Fees Calculated?
In 2025, Amazon bases the fee calculation on your Historical Days of Supply (HDS) for each ASIN. Here’s how it works:
- If your inventory falls below 28 days of supply consistently, you become subject to the Low Inventory Level Fee.
- The fee is added to your regular FBA fees and varies based on product category, size, and historical inventory performance.
- It typically ranges from $0.20 to $0.50 per unit, depending on how low your stock level is compared to the recommended threshold.
Who Is Affected By This Fee?
This fee impacts FBA sellers in the US marketplace who consistently understock their popular products. It particularly affects:
- Fast-moving ASINs
- Sellers scaling without advanced inventory systems
- New sellers unaware of FBA inventory performance metrics
How to Avoid Amazon’s Low Inventory Level Fees in 2025
Avoiding these fees isn’t just possible — it’s profitable. Here’s what e-commerzz.com recommends:
- Track Inventory Performance Regularly
- Monitor your Restock Limits and Restock Recommendations via Seller Central.
- Use 3rd-party tools or hire experts (like e-commerzz.com) for real-time stock monitoring.
- Plan Smarter Restocks
- Analyze sales trends, seasonality, and lead times.
- Maintain at least 30-45 days of inventory in FBA to stay safe.
- Leverage Multi-Channel Fulfillment (MCF)
- Diversify fulfillment sources when Amazon stock is running low.
- Keep backup stock at 3PL warehouses or your own facility.
- Hire Professional FBA Inventory Managers
- If this feels overwhelming, consider outsourcing it. Our team at e-commerzz.com provides expert Amazon inventory management, demand forecasting, and restock planning services.
Why Work With e-commerzz.com for Amazon Inventory Management?
With over 5 years of progressive experience managing Amazon FBA and other marketplaces worldwide, we specialize in:
- Optimizing inventory turnover rates
- Reducing excess storage costs
- Preventing stockouts and fee penalties
- Data-driven restock planning
- Full Amazon account management including PPC and listing optimization
We’ve successfully managed 100+ projects, handled over $10M in ad spend, and built strong partnerships with sellers across the US, UK, Canada, Australia, and the UAE.
Final Thoughts
Amazon’s Low Inventory Level Fees in 2025 are designed to protect their customer experience — but for sellers, they can quietly eat away at your margins if you aren’t prepared. By staying proactive, using expert guidance, and maintaining optimal stock levels, you can avoid these penalties and boost your business performance.
If you’re looking for a trusted, results-oriented partner to manage your Amazon inventory and eCommerce growth, contact e-commerzz.com today.