FBA Storage is Changing...Again
Almost a year ago now, Amazon made an announcement in July 2020 introducing ASIN-level quantity limits on FBA products. This was introduced due to supply chain issues as the COVID-19 pandemic was raging. They also attributed the change to seller feedback, so more sellers could have better inventory flexibility. It was stated by Amazon that most products will have enough space available for over three months of sales. They also changed the minimum inventory performance index (IPI) threshold to 500, which imposed limits on sellers under that threshold.
Fast forward to April 22nd of this year, Amazon changed this, and now restock limits are based on storage-type level instead of ASIN-level. This can be interpreted as your limits being based on storage space and not product units. These restock limits are determined based on previous sales and forecasted sales. This keeps the system nice and balanced, which is beneficial for sellers. This change also will not affect any pending shipments, they will continue to be received normally and won’t be canceled by Amazon.
How have sellers been reacting to this update? It has been pretty mixed, and it is mostly based on what sellers are selling and how big or small they are. A lot of sellers who dreaded the ASIN-level limits are happy for the change, while other sellers are having to hold back on launching new products because they’ve met their restock limits under the new system. Amazon is always changing month-to-month, week-to-week, day-to-day. It is best to be prepared for change. Adaptability is the best for any business, not just third-party sellers. Let us know your selling experience over this past difficult year, how has the pandemic affected your business strategy? Contact us if you are looking for any information or aid on selling on Amazon because we at Avalanche are always prepared for any new changes or challenges.