Amazon Now Charges You for Too Little Inventory AND Too Much. The Safe Zone Is Shrinking.

Amazon’s Low Inventory Fee, combined with the DD+7 revenue withholding policy, creates a restrictive trap for sellers that tightens as businesses grow. The fee, which triggers when inventory levels fall below 28 days of supply, is now assessed per FNSKU, eliminating the protection previously offered by parent-level inventory averages. Maintaining the narrow 28-to-90-day "safe" window is further complicated by long overseas lead times and severe cash flow constraints. To mitigate these costs, sellers must shift to FNSKU-level inventory planning, utilize Amazon Warehousing and Distribution (AWD) as a buffer, or leverage domestic 3PLs to shorten replenishment cycles. A critical tactical workaround exists: reducing sales velocity below 20 units per week for a specific variation can temporarily exempt it from the fee while awaiting inbound restocks. Success requires precise modeling of inventory and cash flow rather than simply increasing capital.