In April 2024, Amazon introduced a fee for carrying too little inventory. They already charged you for carrying too much. The window in between, 28 to 90 days of supply per FNSKU, is the only place you don't get penalized. And as of January 2026, that fee is now assessed per individual variation, not per parent ASIN. That rule change exposed a huge number of SKUs that were previously safe.

In this episode, I break down the full mechanics of how the low inventory fee triggers, the 2026 fee rates ($0.47, $0.87, and $1.11 per unit depending on how far below threshold you fall), and a real example where a single SKU selling 50 units a day generates $1,300 a month in fees. I also show you how to check if you're already being charged right now.

I cover how this fee interacts with DD+7 receiving timelines to create a cash flow trap that gets worse the faster you grow. Two Amazon policies pulling in opposite directions, one penalizing you for having too little stock and another limiting how quickly you can restock. Plus the May 2025 restock limit changes that made it even tighter.

I walk through three practical fixes: decoupling purchase orders from DD+7 timing, using Amazon Warehousing and Distribution, and domestic 3PL buffering. Plus the hidden lever most sellers don't know about, because a partial restock is enough to stop the fee from triggering.

You don't solve this with more cash. You solve it with better timing.