Amazon Offers New Fulfillment Fee Discounts on Select ASINs
📣 ICYMI: Amazon quietly introduced a new discount program Sufficient Inventory Level Promotion. This limited-time offer grants eligible sellers reductions on forthcoming fulfillment fees.
To unlock these cost-saving benefits, you must have ASINs that meet Amazon’s eligibility requirements for the program and send in the suggested unit quantities for those products during specific time frames.
Are your products eligible?
Enrollment in this promotion is limited to specific ASINs only, determined by several factors including forecasted demand.
Unit Demand Forecast is Amazon’s FBA restock tool for high-velocity products.
The graph above shows two main prediction levels: optimistic forecast model and mean prediction level, which Amazon describes as:
If the forecast shows you’re likely to stockout during the next quarter for example, you may receive a new recommended minimum that you should send in by a given ship date. Not only will this help you to stay in stock, but also qualify for a discount.
Amazon may want to incentivize efficient sellers because keeping a good amount of inventory at FBA allows the company to bring products closer to customers and therefore, fulfill orders faster.
Note: If you’re using a third-party inventory forecasting platform or Economic Order Quantity model, you may notice your own forecasts may differ from Amazon’s depending on the restock recommendation settings used.
For example, SoStocked helps you generate a more accurate inventory forecast by allowing you to include in many variables not factored into most basic forecasts, such as adjusted daily velocity (accounting for stockout days to avoid under-ordering), sales spikes, lead times, future marketing plans, and more. This is a feature that Amazon’s tool currently doesn’t have so its forecasts may be inaccurate when compared to a more sophisticated inventory management software.
That means you may end up ordering too much or too little inventory and as a result, incurring additional fees, possibly canceling out the benefits of the promo offer.
Read this blog post to learn more about Amazon’s restock algorithm.
To see which ASINs are eligible for the promotional fee discount, you have a couple of options.
- Go to the “Fee Discount (New)” column on the Restock Inventory page or utilize the Send to Amazon workflow.
- Download the Restock Inventory Report or use the Fee discount filter on the Restock Inventory page, which provides a list of ASINs that qualify, along with the corresponding fee discounts and ideal minimum units.
Discount Period Dates
Qualify for the fee discounts by shipping the recommended minimums to FBA during these three “goal periods.”
- May 15 to June 14 (Past)
- June 15 to July 14 (Current)
- July 15 to August 14 (Upcoming)
After each goal period concludes, expect a processing time of two to four weeks for Amazon to verify whether you have met the requirements and the subsequent application of discounts as reductions in your future fulfillment fees.
According to Amazon, discounts will be applied to all of your eligible ASINs, not just to the ASINs that met the minimum-units requirement.
Let’s say one of your eligible ASINs earned a $40 discount for meeting the replenishment goal in May-June. Instead of applying the discount on that single ASIN, Amazon may apply a one-time $40 fulfillment fee discount across all your ASINs.
However, it is unclear where the discounts (pick and pack, referral, etc.) will be applied specifically. The policy just states:
“Your goal status, total units received, and discount earned will show on the Restock Inventory page and Restock Inventory report within two to four weeks after each goal period.”
What happens if you don’t meet the minimum threshold?
If you sent in some units but didn’t meet the minimum threshold, no partial or prorated discount will be given to you – for example, splitting a single shipment into smaller batches to try to earn a partial discount each time you ship one batch in.
Moreover, surpassing the recommended minimum for the specific goal period will not result in higher discounts.
Fortunately, you can try to increase your chances of earning fee discounts by:
- Getting your inventory checked-in early with these tips.
- Avoiding these critical mistakes sellers make when shipping to Amazon FBA.
- Negotiating for a better lead time with your supplier or freight forwarder.
Related: How to Automate Amazon Inventory Forecasting, 4 Ways to Improve Your IPI Score, Pros and Cons of Amazon Inventory Placement Service, How to Avoid Delays in Purchasing Inventory, 11 Benefits of Amazon Inventory Trackers