In December of previous years, most sellers were immersed in the joy of waiting to receive money. But this year, freight costs have skyrocketed, and warehouses have been refusing to accept goods! Just recently, the maximum inventory of many Amazon sellers has been reduced, and the inventory is in a state of emergency. Amazon has launched a series of policy attacks, and sellers are having a hard time...
FBA's maximum inventory capacity has dropped sharply, and may increase in two or three weeks In the past two days, a large number of sellers found that the number of items available for shipment in Amazon's inventory plummeted overnight. Even though sales increased, inventory capacity continued to decrease, and some were directly reduced by half. "It dropped from 2000+ to 600, which is really frustrating... The sales volume dropped by half after the huge price increase, and there is really nothing we can do." "Today's maximum shipment quantity has been reduced by more than half. Yesterday, I could still ship 1,000, but today I can only ship 200. I thought I was seeing things." "There was a product with a limited quantity of more than 4,000. More than 4,000 were shipped. After a few days of sales, more than 800 were shipped and ready to be shipped by sea. Before the goods arrived at the freight forwarder, the inventory limit became more than 2,000. The inventory exceeded the limit by more than 1,000. The inventory plan showed low inventory. It really made people stupid." Small sellers are even more worried because they can’t ship goods directly. “We sell 20 orders a day, and a few days ago we could ship 100+ pieces, but today we can only ship 0 pieces, and we have hundreds of excess inventory?? "I was able to ship 300 pieces the day before yesterday, but today I can only ship 0 pieces. I didn't even save the goods, so it's too late to say anything..." “Have I been abandoned by Amazon?!” According to sellers, Amazon now basically only gives sellers a limit of a little more than one month , and the entire warehouse limit has been reduced from the original three months of salable inventory to one month . Some sellers with smaller quantities that can be shipped have even had their inventory cleared to zero. Out-of-stock conditions during the peak season are the most fatal. The inventory capacity has dropped too drastically. Many sellers have reported that they are on the verge of running out of stock. Products are out of stock before they are even launched. Regarding the sudden drop in storage capacity, a seller asked a business manager and got the following reply: Amazon's system is being adjusted, and the volume will increase in two or three weeks. Another investment manager also said that the replenishment quantity is temporary and will gradually recover later. A few weeks later, when a large number of Christmas and other holiday products are sold, Amazon warehouses will be able to accept more goods, but by then some sellers may have run out of stock. So until now, there are still sellers trying to break the restrictions on shipments, but one seller sent a warning: "Those who reuse goods or send more than the quantity should be careful, Amazon has started to catch them again, and if you are not careful, it will affect those who ship normally."
These related issues may result in one or more of the following: - Repack or relabel your shipment and charge you accordingly -Requires you to pay a pre-processing fee upfront for ASINs with a history of high defect rates -Suspend your ability to create new shipments - We will refuse future shipments and return them to you at your expense Some sellers are out of stock, so inventory will be king for some time to come. In fact, as the maximum inventory capacity has become smaller and smaller during this period, and Amazon has frequently canceled shipments, sellers have been forced to fall into the vicious circle and vicious cycle of "reduced inventory capacity - product price increase - decreased sales after price increase - less inventory capacity - product price increase" .
On the Amazon warehouse side, several warehouses including ONT8 continue to be overwhelmed. It is reported that the red invoice signed on November 20 is still not on the shelves, and some Chinese sellers’ goods have even been abandoned in the warehouse. A few days ago, a seller used two pictures to vividly describe the current difficult situation of warehousing goods. In addition, California has implemented a stay-at-home order that will last for at least three weeks. Once it takes effect, logistics efficiency may be even slower in the next three weeks. It is reported that there are more than 20 FBA warehouses in California, including ONT2, ONT6, ONT8, etc. According to the editor, many sellers are now out of stock . If the current situation continues, more and more sellers will face the risk of out of stock in the future.
The next ten days or so will be the peak period of Amazon's Christmas shopping season, with considerable traffic and inventory will become a powerful tool for explosive sales. But for many sellers, the current situation is that no matter how delicious the Christmas meat is, they can only shed tears because there is no stock. So what other ways can sellers deal with the current shipping policy? An Amazon veteran gave the following suggestions, which can be divided into several situations: - For high-profit (non-bulky goods) sellers, they can sacrifice part of their profits and choose air delivery or express delivery for emergency replenishment. At present, DHL's delivery time is the most reliable.
- For sellers with overseas warehouse resources, they can use express delivery to overseas warehouses, and when the FBA inventory is almost sold out, they can then send it from the overseas warehouse to the Amazon warehouse. If the stock is out of stock in the middle, they can ship it by themselves first (from overseas warehouses).
- For sellers who have low profits and cannot use air express delivery, they can only raise prices in stages, but price increases must be strategic and cannot be done randomly.
- Sellers are advised to use the automatic pricing tool in the backend and select adjustment based on sales volume. Calculate the number of orders on the homepage of the main keywords for the product, and then fix this value. While ensuring that the sales volume is not lower than the number of orders on the homepage, increase the price a little bit every day. When the sales volume is lower than the number of orders on the homepage, stop immediately and lower the price back to the equilibrium point.
Amazon warehouses are seriously overwhelmed, UPS deliveries are widely delayed Amazon warehouses have been experiencing a lot of problems this year, with either warehouse overflow or rejection of goods, which has been bothering sellers. Recently, many sellers’ goods have been rejected... The editor learned that an Amazon seller encountered a situation where the warehouse was temporarily suspended from receiving goods. After the seller sent the goods to the Amazon warehouse in Canada, he received a message: the goods had been picked up, but because the local Amazon warehouse was overcrowded and the receipt was suspended, UPS suspended accepting FBA goods, and the delivery time would be delayed. It is understood that the Amazon warehouse that has suspended receiving goods is YYC1, and many sellers have encountered the situation where their goods have been refused by this warehouse. In addition, Amazon’s warehouse overflows are also very serious in Europe. Some freight forwarders claim that many Amazon warehouses in Europe are currently unable to deliver goods. The overflows and slow processing have caused serious delays in delivery time. UPS deliveries in Europe are experiencing widespread delays, and the final delivery time is horrible. Many freight forwarders have also been complained by sellers. One freight forwarder complained: "The delays are really terrible. I have been scolded by customers several times. One time, I was scolded early in the morning. I was scolded so badly..." Some sellers also said that they have been urging freight forwarders to ask UPS to quickly deliver their goods to Amazon warehouses, but the freight forwarders said helplessly that now all overseas warehouses are paralyzed and not many people are at work. I am also helpless that no one delivers the goods. I believe that many freight forwarders have been urged by sellers recently, but after all, the tail-end delivery is not under their control, and freight forwarders are more anxious than sellers. A freight forwarder said that most Americans are not working at present, and the United States is too chaotic now. Some warehouse staff have all run away. There is really nothing that can be done when such a thing happens.
(Source: SellerGrowth )
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