Inventory capacity management refers to the management of commodity inventory quantity, inventory structure, inventory time, etc. The peak season is coming and inventory capacity management issues need to be paid attention to. So how does Amazon manage inventory capacity limits, and how often does Amazon’s inventory capacity limits update?
1. How does Amazon manage inventory capacity limits?
1. Cancel slow-selling products: Regularly cancel slow-selling or unsalable products to release warehouse capacity limits. You can choose to sell these products, transfer them to Amazon’s long-term warehouse, or extract them from Amazon’s warehouse.
2. Improve inventory: Improve inventory management to ensure good inventory rotation and reduce the risk of slow sales.
3. Utilize Amazon FBA multi-channel inventory: Allocate inventory to different Amazon international markets to maximize the use of storage capacity.
4. Plan inventory: Use sales data and seasonal trends to plan inventory so that there is enough inventory during peak demand periods.
5. Apply for inventory capacity limit improvements: If necessary, you can apply to Amazon for inventory capacity limit improvements. This usually requires meeting some conditions, such as maintaining good account performance.
2. How often does Amazon’s storage capacity limit update?
According to the new policy on storage capacity, Amazon began to announce new capacity limits on the third Monday of each month, and within a week, merchants can check it through the “Capacity Monitor” at the bottom of the Amazon logistics control panel. At present, the storage capacity of Amazon’s backend has been updated in March, April and May.
3. Analysis of Amazon’s new storage capacity policy
According to Amazon’s official statement, the original inventory limits and quarterly storage limits will be replaced by a unified Amazon storage capacity, which determines the merchant’s delivery limits and storage limits.
Specifically, there are the following details. First, cancel the additional inventory limit. The platform will not limit the number of merchants’ deliveries, but will still divide the inventory that merchants can send and store to the Amazon marketing center according to the type of storage required for the goods.
The system will calculate based on the merchant’s in-transit inventory and the goods in stock. If the volume exceeds the restricted storage capacity, the merchant will not be able to continue to establish delivery and pay excess storage fees for the volume of the part of the goods that exceeds the storage capacity. IPI used to be evaluated quarterly, but now the new policy changes monthly, and the corresponding storage capacity limits also change monthly.
In addition to knowing the storage capacity limits that are clearly defined for the next month, Amazon can also see estimated storage capacity for the next two months.