When the peak season is approaching, sellers replenish more and sell more goods. This should be a good thing for Amazon. Commissions, advertising fees, and FBA storage fees can make money in every link. But why does Amazon drastically reduce its storage capacity and limit sellers’ distribution during the peak season? What about the goods?

The first is the general environment. Many places in the United States have insufficient warehouse capacity: data show that in the second quarter of the United States, the average rent of industrial warehouses exceeded / square foot, which was 21% higher than that of the same period last year. At present, the bottleneck of insufficient warehouse capacity has appeared in many places in the United States, and it is difficult to find a warehouse. Many retail giants even rent container trailers to store goods for a short time;

The second is Amazon's own problems. 1. Amazon has controlled its scale in recent years and canceled a large number of warehouse expansion plans. In 2022 alone, it canceled and postponed 16 warehouse plans;

2. Amazon has sub-leased a considerable part of its own warehouse: Amazon has not only canceled the warehouse expansion plan, but even reduced its own stock warehouse, subleasing at least 10 million square feet of warehouses;

3. Amazon's major layoffs: Amazon has laid off at least 100,000 employees in the first and second quarters of this year, many of whom are in warehousing fulfillment centers and distribution network systems, which has affected the normal operation of Amazon's FBA warehouses.

To sum up, Amazon itself not only canceled the warehouse expansion plan, but also sub-leased a large number of warehouses, and laid off a group of employees. Now that the peak season is coming, the warehouse is of course not enough, and the seller's storage capacity has to be greatly reduced.

To reduce the storage capacity, it is easy for sellers to oversize, and Amazon will charge an overage fee.

Excessive storage fees are not a joke, every minute will give you thousands of dollars in extra storage fees. From April to June this year, a seller had an extra storage fee of 10,000 US dollars, with an average monthly increase of 3,000 US dollars.

As for how to calculate the overage fee, some sellers have doubts. Some sellers said that if the volume of the goods exceeds the limit, they will be charged an overweight fee, and some sellers say that after the number of goods exceeds the limit, they will also be charged an overweight fee.

A seller consulted with the manager and learned that there is no overage fee for exceeding the number of pieces, and only the excess volume will be charged.

So, the seller's inventory is not enough, what should I do?

First of all, the service provider’s method of breaking through the storage capacity limit should be adopted cautiously. Some sellers made a breakthrough and were not punished, while some sellers were fined severely;

Second, find an Amazon investment manager to apply for expansion. Amazon gives special consideration to some well-run sellers, and sellers who meet certain conditions can apply for storage capacity:

1. IPI>400 (or a new FBA user, no IPI score for now);

2. After the application is successful, it is guaranteed to be shipped within 1 week;

3. Storage capacity utilization >90%.

Of course, the investment manager will not guarantee 100% that the application will be successful, and the background will prevail in the end.

Third, the unspoken method: open more advertisements and issue more orders, remove redundant inventory, find overseas warehouses to stock up, and ensure that after the goods in the FBA warehouse are sold out, there are still goods that can be shipped.

In addition, everyone should pay attention to the fact that some warehouses of Amazon are very violent, and some sellers even put them on the shelves after 60 days. The liquidated warehouses include ONT8, LAX9, LAX1, SMF3, FTW1, IND9, LGB8, GYR3, GYR2, MQJ1, SJC7, etc.

Some seller feedback information can be used as a reference:

LAS1 is really not good, and it is said that LAX9 is also slow; GYR2 has been in the warehouse for more than ten days without any movement; the shipments sent to IND9 and MQJI at the end of August and early September have not been fully received yet, and it has been 50 days; SMF3 – warehouse burst Seriously, it is necessary to make an appointment three weeks in advance; /9 does not approve the agreement, /LGB9- does not approve the agreement, and SBD1 does not approve the agreement.

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