Increased demand during the pandemic and supply chain disruptions forced Amazon to impose restrictions on shipments in the spring of 2020. In the same year, the retail giant introduced limits on the number of levels of shipping. ASIN during the holiday season. Despite Amazon’s claim that “sellers have enough space to hold the equivalent of three months of sales per product,” most sellers are turning to FBM. It was speculated that this was not a long-term decision by Amazon. Of course, this is not the case.
The limit on the number of ASIN levels has been removed. Before the sellers sighed in relief, Amazon introduced additional limits for each type of storage. Amazon announced in its official newsletter: “From April 22, 2021, FBA products will no longer be subject to ASIN level restrictions. Instead, additional restrictions will be placed on the type of storage, giving you more flexibility in managing shipments.
WHAT IS THE RESTOCK LIMIT?
Basically, Amazon has four main types of storage.
Standard Size: Product weighs 20 pounds or less than 18 “x 1 ” x 8 ”
Oversize: Product weighs or exceeds standard
Footwear: Boots, Sandals, Slippers, etc.
Clothing: Apparel and Accessories
FBA Restock limits are calculated based on the above storage types along with previous and forecasted sales data. Precisely, restock limits are applied at an account level and not ASIN level. So if a seller wants to send in a greater amount of any one of the ASINs, they can. Amazon explains that the “restock limits provide better flexibility to allocate and manage the inventory you send to Amazon.”
These changes were made to address insufficient warehouse capacity. 2020 has completely changed the way customers shop. Demand is high and storage is limited as more and more sellers are looking to online shopping. Amazon hired thousands of fulfillment workers to meet the demand.
The second reason could be Prime Day. Amazon sellers send excess inventory and restock controls the amount of inventory FBA receives.
What about the sellers with popular seasonal products?
These sellers might not be able to top up their most selling ASINs despite being in demand. In addition, as Prime Day approaches, Restock limits pose new challenges. At successful events like Prime Day, almost every Amazon seller sees a significant increase in sales. However, if the last month’s data does not require additional limits, they may run out of products on the event’s second day.
What can the seller do to tackle this situation?
Instead of worrying (and complaining) about these new Amazon FBA inventory changes, what sellers can do is take care of them. Here are some tips from Amazon sales consultants to help you manage your inventory effectively.
- Diversifying Methods
Amazon FBA offers significant benefits, but this has not been the case since the start of the COVID19 pandemic. The most reliable way to do it. There is a limited delivery from the beginning of March to the end of April. Amazon only accepts the shipment of requested items. In July 2020, Amazon introduced an ASIN-level quantity limit and now has an additional limit.
However, Do not put all your eggs in one basket. If Amazon’s warehouse restrictions prevent you from sending inventory during peak season, you can fulfill orders from your own warehouse.
2. Submit profitable item inventory
The restock limit is an account-level limit, so you can do one of the following:
Option 1: Send inventory of all items.
Option 2: Restock profitable SKUs and add more products more leanly or not at all.
3. Sell slow inventory with FBM
Use FBA for fast-selling products and fulfill the others using FBM. This way you will also avoid paying fees for long storage items.
4. Make room for bestsellers
It’s time to make room in Amazon’s warehouse for the best-selling ASIN. Here are some ways to eliminate slow stock from your Amazon warehouse:
You can recall slow stock by creating a removal order.
You can ask an Amazon PPC expert to run a transaction or advertisement on a slow ASIN. If you sell on Shopify, eBay, or other sites, you can use MCF (MultiChannel Fulfillment) to process those orders.
5. Don’t panic
Most of the Amazon sellers are stunned by the sudden announcement, but you’re not alone. As far as we know, Amazon is constantly adjusting its policies to make the selling experience easier. Quoting Darwin’s words from his time, especially when we are dealing with any sudden or gradual change, the one that adapts and makes the most of it will be the one to survive when others perish.
Without a doubt, the sooner you accept your changes and work accordingly, the better are the chances that you will succeed.
