2021 update: someone shared Shipment Maker Pro – a tool that allows you to get around inventory limits. I used it for my own products and it worked.
On July 13th, 2020, Amazon announced that there will be new storage limits, effective on August 16th, 2020. The limits apply to sellers that have an IPI score (Inventory Performance Index) below 500 and will last through the end of the year.
You can read the announcement and forum here: https://sellercentral.amazon.com/forums/t/fba-changes-as-we-prepare-for-a-successful-peak-us/660985
Takeaways:
- New products – a maximum of 200 units can be sent into FBA.
- Existing products – your limit depends on your IPI score.
- You can see this number by going to the Inventory > Manage Inventory > Restock Inventory > click the number in the Days of Supply column.
- If the product is successful, it shouldn’t be too much of a problem.
- Their algorithm wants to prioritize products that are making money, basically.
You can find the maximum inventory limit by clicking here. Inventory > Manage Inventory > Restock Inventory > click the number under Days of Supply.
Recommendations
This basically means that if you’re launching a new product, you will have to start with 200 units in FBA, and send in more inventory as needed.
I recommend storing your extra inventory as your home/office, or at a 3rd party warehouse that can quickly ship to FBA.
- Keep excess inventory at home or a 3rd party warehouse.
- Ship to FBA as needed
Why?
It seems like its a combination of FBA prepping for the busy holiday season, and potentially preparing for a 2nd wave of covid in the winter time – meaning they’d need to free up space for essential items.
FBA has always imposed inventory limits and increased slow moving inventory fees during Q4. This year, they’re just doing it a bit earlier as per Amazon Marketing Agencies, and a bit tighter.
- Preparing for the Holiday Rush (prioritizing space for existing hot products)
- Saving space for PPE/essentials in a potential covid outbreak this winter
Takeaway
Overall, I’m not changing how I go about my business, and it shouldn’t deter you from launching products either! As in entrepreneurship and in life, just roll with the punches and adjust as needed!
In other exciting news, Amazon just launched Virtual Bundles, which I’m stoked about! It should boost sales for a lot of brands.
Happy selling!
Riley
Riley Bennett
“I help brands CRUSH it on Amazon.”
