Big news! Amazon limits total FBA inventory, all European and American sites affected

Big news! Amazon limits total FBA inventory, all European and American sites affected
Today, many Amazon sellers were stunned when they opened the backend!


It turns out that Amazon's US site has the same shipping restrictions as Canada, limiting the total inventory and limiting the number of items entering the warehouse/replenishment quantity by storage type (standard size, large items, clothing, shoes and boots).


The background screenshots are as follows:


From the screenshot, we can see that Amazon has removed the ASIN-level replenishment restrictions, but now will limit the overall store inventory based on different warehouse types and past sales . What’s even more disappointing is that according to Amazon’s global store news, both Amazon’s European and American sites have changed their FBA product warehousing restrictions.


In other words, this new regulation means that sellers now face double restrictions: one is the inventory capacity limit caused by the IPI score not meeting the standard , and the other is the total inventory quantity limit of the store .

One seller posted a screenshot and said: "There is news that the total amount is determined based on the store's sales in the past 28 weeks. I don't know if it is reliable."


Sellers also believe that the overall inventory limit is directly linked to the sales volume of ASIN . The more sales, the more replenishment quota . Therefore, perhaps the most affected are new sellers, because no sales means that the total inventory is not much. Generally, the maximum inventory level and the maximum delivery quantity are both at 1,000 pieces .



At present, Amazon has also issued a relevant announcement on this matter, and stated that from April 22 , new storage type level restrictions will be implemented :



Amazon's peak season warehouse overflow and slow stocking have been widely criticized by sellers. Combined with the recent limited-time free inventory removal event, Amazon's move may be to increase the turnover rate of FBA warehouses, make room for products with relatively high turnover rates and its own self-operated products, and prepare for the upcoming peak season.


At present, the most affected are the following types of sellers:



New stores: It is understood that the replenishment limit for all storage types of new sellers is 1,000 pieces. At present, many new stores have reached the limit and cannot ship. Even if they can ship, slow sea transportation and slow listing can easily lead to out-of-stock, and the out-of-stock inventory limit will be further reduced, and then the replenishment will be slow and out-of-stock, which will fall into an endless cycle;


Sellers who sell goods in bulk: Sellers with a large number of SKUs will be impacted to a certain extent, and large stores with fine distribution will face challenges;


Seasonal product sellers: It is not clear how often Amazon updates its total inventory quantity limit, but if it is really updated once a week as the sellers claim, the impact on seasonal product sellers is still relatively large. Seasonal products have slow turnover and low sales rates. If they are in the off-season, the total inventory will be strictly limited. Once they suddenly become popular during the peak season, Amazon's failure to update the limit in a timely manner can easily lead to sellers not replenishing their products in time, resulting in out-of-stock.


There are policies from above and countermeasures from below. In this regard, the editor can give the following suggestions:



Optimize inventory, increase inventory turnover, and reduce inventory of products with low turnover. This requires sellers to eliminate some useless products and focus on making high-quality products.


Clear redundant inventory in a timely manner, increase sales through promotional means such as Outlet Deals, advertising, flash sales, price cuts, etc., create removal orders, remove or abandon inventory, etc.;


Change the delivery method. Sea freight generally has a poor timeliness, but air freight costs are relatively high, so it is time for sellers to consider the feasibility of overseas warehouses.


Many sellers have already exceeded their inventory limits. Amazon’s announcement clearly stated: “Delivering more inventory than the maximum allowed shipment quantity is a policy violation and may result in the cancellation of non-compliant shipments.”


As to whether they will be fined, a seller opened a case and asked customer service. Customer service replied: If there is no excess capacity limit, no excess storage fee will be charged, but you will not be able to create shipments or replenish stock later, and future shipments may be rejected .


But some sellers also said: "Since the limit is on stores, not ASIN, then it would be great to sell across stores and send FBA, right?"



Do you think this method is feasible? Does the new regulation have a big impact on you? Welcome to leave a message in the comment section~



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