As the e-commerce world evolves rapidly, Amazon continues to refine its FBA (Fulfilled by Amazon) fee structure to optimize operations and delivery performance. One of the most significant changes in 2025 is the Low Inventory Level Fee — a move designed to encourage sellers to maintain optimal stock levels and reduce shipping delays. While beneficial to the customer experience, this update brings both challenges and opportunities for sellers.
In this comprehensive guide, we’ll break down what this new fee means, how it affects your business, and how e-commerzz.com can help you not only comply — but thrive.
What is the Low Inventory Level Fee?
Starting in 2024 and updated further in early 2025, Amazon introduced a tiered fee targeting FBA sellers who consistently maintain low stock levels for high-demand products. This fee applies to standard-size items with less than 28 days of inventory supply, measured against recent sales velocity.
Here’s a quick look at the breakdown:
- Small Standard Size (up to 16 oz):
- 0–14 days of supply: $0.89 per unit
- 14–21 days: $0.63
- 21–28 days: $0.32
- Large Standard Size (up to 3 lbs):
- 0–14 days: $0.97
- 14–21 days: $0.70
- 21–28 days: $0.36
- Large Standard Size (3+ lbs up to 20 lbs):
- 0–14 days: $1.11
- 14–21 days: $0.87
- 21–28 days: $0.47
These fees are automatically added to the fulfillment costs if your inventory consistently runs low.
What’s New in 2025?
1. Extended Grace Period
Amazon now offers a longer transition period for sellers to adapt to the new rules. Sellers were initially charged starting April 2024, but now have until mid-May 2025 to adjust their supply chain without being penalized.
2. Fee Credits Issued
To support sellers during the adjustment phase, Amazon is issuing retroactive credits for fees applied during the initial roll-out — particularly between April and May 2024. This has helped many sellers stay afloat during uncertain times.
3. Exemptions for Certain Product Types
Products considered seasonal or nearing their end-of-life are now exempt, provided they haven’t sold more than 20 units in the past 7 days. This includes holiday-specific items or discontinued products.
4. Handling Time Allowances
Amazon will now issue fee refunds when delays are caused by their own warehousing and processing systems. This ensures sellers aren’t penalized for issues outside of their control.
5. Prime Day Exception
To encourage participation in Prime Day promotions, items included in Lightning Deals or Best Deals will temporarily be exempt from the fee during and shortly after Prime events.
Challenges Sellers Now Face
Even with these concessions, the fee introduces new complexities:
- Increased Inventory Costs: Maintaining higher stock levels ties up capital and warehouse space.
- More Complex Forecasting: Accurately predicting 28+ days of demand is difficult for many sellers, especially small businesses.
- Greater Supply Chain Pressure: To avoid penalties, businesses must now act faster and more strategically in replenishing stock.
Proven Strategies to Avoid the Fee
Here are some proactive steps sellers can take:
- Improve Demand Forecasting: Use advanced tools or third-party software to monitor trends and predict inventory needs based on sales velocity.
- Maintain a Safety Stock Buffer: Always aim to have at least 30 days of inventory available to absorb sudden spikes in demand or shipping delays.
- Opt into Auto-Replenishment: Amazon offers programs that automatically restock FBA items — products enrolled in these programs are often exempt from the fee.
- Streamline Your Inbound Process: Work with trusted suppliers and logistics providers to reduce lead times and prevent stockouts.
Why Partner with e-commerzz.com?
At e-commerzz.com, we understand the growing complexity of Amazon’s seller ecosystem. We’re not just another service provider — we’re your e-commerce.com growth partner. Here’s why brands and sellers trust us:
- ✅ Managed Over 100 Projects Successfully
- ✅ Handled $10M+ in PPC Ad Spend
- ✅ 5+ Years of Marketplace Experience
- ✅ Top-Tier Client Communication
- ✅ Focused on Quality and Efficiency
- ✅ Known for Honesty, Trust, and Work Ethic
With expertise in Amazon, Walmart, eBay, Shopify, WooCommerce, and more — across regions like the US, UK, Canada, Australia, and the UAE — we provide strategic solutions that help you stay profitable, compliant, and scalable.
Final Thoughts
The Low Inventory Level Fee might seem like another hurdle, but for forward-thinking sellers, it’s also a powerful motivator to refine operations and boost efficiency. With the right approach — and the right team — you can avoid penalties and improve overall performance.
Let e-commerzz.com help you master your inventory, scale smart, and dominate your marketplace in 2025 and beyond.