Amazon pre-peak season inventory expansion and inventory management strategy guide

On the Amazon platform, an important challenge faced by sellers is how to effectively apply for expanded inventory capacity before the peak season to meet sales demand and avoid insufficient inventory. This article will consolidate advice on how to apply for expanded Amazon inventory, as well as information on dealing with inventory constraints and optimizing inventory management strategies.

Steps to apply to expand Amazon inventory

1. Plan ahead

Before the peak season arrives, sellers should develop a detailed inventory management plan and analyze historical sales data and demand to determine the amount of inventory capacity that needs to be increased. Amazon typically requires advance requests, so the earlier you plan, the better your chances of getting the inventory you need.

2. Assess current inventory

Before applying for expansion, first assess your existing inventory to ensure it is of good quality and avoid slow-moving items. Amazon checks inventory to make sure it meets requirements, which is very important when applying.

3. Contact Amazon Support

After determining that you need to expand the warehouse capacity, contact the Amazon seller support team in time. They will provide detailed guidance on how to submit an application, as well as required information such as sales plans and demand forecasts.

4. Provide accurate sales forecasts

Sales forecast is an important basis for applying for inventory expansion. Sellers need to use historical sales data and market trends to support forecasts to increase the chances of a successful application.

5. Consider FBA storage fees

When applying to expand inventory, pay attention to Amazon’s FBA storage fees. Fees are calculated based on inventory quantity and storage time, so understanding these fees will go a long way in planning your inventory management strategy.

6. Prepare in advance

As soon as the storage capacity expansion request is approved, immediately prepare and adjust inventory. Ensure the supply chain can deliver on time to take full advantage of expanded inventory capacity.

7. Pay attention to communication

Maintain close contact with Amazon’s support team throughout the entire storage expansion process to ensure quick responses to their inquiries so that your application can move forward smoothly.

Challenges and response strategies of inventory management

When a merchant’s inventory exceeds the limit set by Amazon, Amazon usually does not immediately refuse to accept the goods, but instead issues a warning asking the merchant to take steps to reduce inventory levels. In this case, sellers can take the following actions:

1. Accelerate Sales: Increase sales through marketing campaigns and advertising to quickly deplete inventory;
2. Adjust inventory strategy: Optimize inventory management strategy, including adjusting inventory frequency, order quantity and product mix;
3. Multi-channel sales: In addition to selling on Amazon, you can consider expanding sales channels, such as self-built online stores or offline stores, to spread inventory pressure.

Merchants should develop an inventory clearance plan and explain the execution plan and timeline to Amazon so that shipping rights can be restored after inventory is reduced. [2].

How to check Amazon storage capacity limits

To check Amazon’s inventory limits, follow these steps:

1. Log in to Amazon Seller Center;
2. Click the “Inventory” option on the top navigation bar;
3. Under “Inventory Management,” find the “Inventory Limits” option and click to view specific limits.

In short, in order to launch an effective inventory management strategy before the peak season and ensure the smooth expansion of inventory capacity, sellers need to conduct comprehensive planning, accurate forecasting, and maintain good communication with Amazon. This will help merchants gain an edge in a highly competitive environment.