In Amazon’s product operations, inventory management is a vital task. Inventory capacity limits are directly related to the number of goods that sellers can store and ship, so reasonable and efficient inventory management is crucial to improving sellers’ sales performance. With the arrival of the peak season, it is even more important to pay attention to the reasonable management of inventory limits. Here is some relevant information about how Amazon manages inventory limits and the frequency of inventory limit updates.
1. How Amazon manages inventory limits
Remove slow-moving products: Timely clear out slow-moving or unsalable products to release inventory limits. This can be achieved by selling the products, moving them to Amazon’s long-term warehouses, or extracting them from Amazon warehouses.
Optimize inventory: Ensure good inventory rotation, reduce the risk of slow-moving products, and increase inventory turnover.
Use Amazon FBA multi-channel inventory: Reasonably allocate inventory to different Amazon international markets to maximize the use of inventory.
Plan inventory: Use sales data and seasonal trends to plan inventory reasonably to ensure that there is enough inventory to stock during peak demand periods.
Apply for an increase in storage capacity limits: If necessary, you can apply to Amazon to increase storage capacity limits. This usually requires meeting some conditions, such as maintaining good account performance.
2. How often are Amazon storage capacity limits updated?
According to Amazon’s new storage capacity policy, the third Monday of each month is the time for storage capacity limits to be updated. Amazon will announce new storage capacity limits within a week, and sellers can view them through the “Capacity Monitor” of the Amazon Logistics Control Panel. Storage capacity limits are updated once a month to better adapt to market changes and seller needs.
Changes in Amazon’s new storage capacity policy include the cancellation of additional replenishment restrictions and the unified use of Amazon’s storage capacity. Sellers are no longer restricted by the number of shipments, but instead divide storage capacity limits according to the type of storage required for the goods. Sellers can respond to storage capacity requirements for different types of goods through reasonable storage capacity management based on actual conditions.
Sellers can also see the estimated storage capacity for the next two months, which helps to plan and manage inventory in advance. When storage capacity is insufficient, sellers can submit up to 5 applications through the Storage Limit Manager to obtain additional storage capacity and ensure that sales needs can be met.