Finally, the day on which all Amazon Sellers doing business through Fulfillment by Amazon have been waiting for is here! On 1.March 2023, Amazon removed the controversial Restock Limits, which were impacting the amount of units each Amazon Seller could send into FBA at any given time. From now on, sellers will be offered a storage capacity allowance, meaning that the amount of units they can ship into FBA is now unlimited and instead, the cubic space occupied is important.
What were restock limits?
Restock limits were implemented around two years ago, in addition to already existing Storage Limits and Inventory Performance Index. While the former metrics were quite easy to maintain and most sellers never experienced them falling below the recommended targets, Restock Limits suddenly slashed the amount of units which sellers could send into Amazon’s warehouses, regardless of their existing Storage Limits or IPI scores. Restock Limits were based mainly of each seller’s current quantity of slow selling products. This meant that even if a seller enjoyed great sales of new popular products, any slow selling products from previous shipments which didn’t sell well entirely filled their utilization allowance. Many sellers who were unwilling or unable to liquidate their inventory in order to decrease the number of stored units had to spend months or even years without having the option to send any stock into FBA at all. This was regardless of the product size and the space it was taking.
What is changing now?
Under the new system, Storage Capacity is all what matters. All sellers can send as many units as they wish, as long as they are meeting their storage capacity allowance of a minimum 100 cubic feet. This is a large amount of space for sellers selling small items, such as jewelry. Previously, sellers like this were impacted by the Restock Limits the most, especially in the Apparel Category. Amazon treated 1000 units (which used to be the lowest permitted restock limit) of small beads in polybags equally, as 1000 units of heavy handbags or coats.
Additionally, sellers with already filled capacity allowances will be able to request and purchase extra storage for a small fee. Hopefully, this will be the end of sellers having to worry about their FBA storage allowance, instead of spending time focusing on growing their businesses.
As with everything, my recommendation for you is to wisely select products to restock into FBA following this increase as soon as possible, before they change the rules to make them stricter.
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Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.
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