Recently, some sellers have reported that Amazon is taking measures to restrict the warehouses of third-party sellers. In response to this policy, let's take a look at how sellers should respond. The seller has a greater impact on the limited position. If the seller does not operate well, the inventory will be out of stock at any time, and the buyer cannot buy the product. In the long run, sellers will lose a large number of consumers, so sellers should fully understand Amazon's warehouse limit policy and take timely measures.

What is Amazon's warehouse limit policy?

In order to optimize inventory management and allow sellers to deliver their products to buyers faster, Fulfillment by Amazon ( FBA) has adjusted the limit policy for FBA warehouses. This time, Amazon introduced the Inventory Performance Index (IPI), which added quarterly assessments to sellers' IPI index to promote sellers to optimize inventory management.

Seller Inventory Performance Score improved. The Inventory Performance Index scores of Amazon Europe and Japan are adjusted to 500 points. From September 1, 2020 to the end of this year, sellers with an IPI score below 500 will have storage restrictions. Amazon said the move is primarily to ensure that all items have available storage space during the peak season. Therefore, sellers need to improve their inventory performance scores. Sellers can refer to the recommendations of the inventory performance dashboard, such as increasing sell-through rates, reducing redundant inventory, or repairing Amazon inventory that is not available for sale, so as to improve inventory performance indicator scores .

Increase the ASIN level limit. Amazon will implement ASIN-level quantity restrictions on FBA products, and most products will have enough storage space for more than three months of product sales. Sellers can view product quantity limits on the Replenishment Inventory page and the Replenishment report in Seller Central.

Remove events for free. In order to help sellers avoid storage fees for long-term unsold products, Amazon increases storage space for products that sell well. Amazon's US, Japan, and Europe all have a "free removal" limited-time promotion.

How does Amazon's inventory limit affect sellers?

The initial store replenishment limit for all storage types of new sellers is 1,000 pieces, which may have a certain impact on the seller's store and cause out of stock.

How should sellers respond?

Check inventory regularly

From the time the seller starts doing Amazon FBA, the seller should develop the habit of always paying attention to the inventory quantity. Sellers need to have a detailed understanding of their inventory status.

Optimize inventory

Improve inventory turnover and reduce inventory of products with low turnover. Clean up redundant inventory in a timely manner, increase sales through promotions such as advertising, spikes, and price reductions, create removal orders, and clear slow-moving inventory.

Optimize shipping methods

Shipping time is poor and air freight is high, so sellers should optimize their shipping methods and use different shipping methods for different products.

Improve your IPI score

Sellers can improve their Inventory Performance Indicator scores by increasing sell-through rates, reducing excess inventory, or fixing Amazon inventory that is not for sale.