As sellers continue to increase their demand for inventory in Amazon’s fulfillment centers, in order to ensure that sellers can get a high-quality selling experience at Amazon, Amazon continues to invest heavily to increase storage space across the distribution and logistics network.
Here are some common Amazon warehousing questions and answers that can help Amazon sellers understand more about warehousing regulations.
1. What are replenishment limits and storage limits?
Currently, for Amazon Logistics accounts, replenishment limits and storage limits are two different capacity limits that sellers may see. Help sellers manage new inventory inflows (replenishment limits) and actual space in the operation center (storage limits). These limits can be viewed through the replenishment and storage capacity monitor.
The “replenishment limit” determines the amount of inventory that sellers can send to the business center and is set according to different storage types (for example, categorizable goods, large items, clothing and footwear). These data are determined based on the seller’s past sales and forecasted sales. The replenishment quantity is not affected by the Inventory Performance Index (IPI).
Storage limits are calculated in cubic meters, which means the total inventory that can be stored in Amazon’s fulfillment center. If the seller’s Inventory Performance Index score is over 500, there will be no additional warehouse limits beyond the replenishment limit.
2. How can I increase the storage limit?
Storage limits are directly related to inventory performance and are reflected in the Inventory Performance Index score on the Seller Platform. Amazon will set the Inventory Performance Index threshold for the next quarter at the end of each quarter.
If the seller’s Inventory Performance Index score is below this threshold, Amazon will limit storage capacity in the next quarter.
If the seller’s Inventory Performance Index score exceeds the threshold during the quarterly score check, there will be no warehouse restrictions in the next quarter.
Therefore, be sure to make a long-term plan to get the Inventory Performance Index into the green range, especially at the end of the quarter. Warehouse capacity cannot be increased in the current quarter. At present, Amazon’s storage space does not provide procurement channels.
3. Can the storage type of the goods be changed?
It cannot be changed. The storage type is determined by Amazon based on the characteristics of the product, which helps to send the goods to the correct operation center. To understand the current inventory type of the goods, please refer to the Amazon Logistics Inventory page.
If you think that the goods are incorrectly classified in the warehouse type (for example, shoes and boots are not classified as shoes and boots, but as standard sizes), it will have an adverse impact on the seller’s inventory management. You can change the product classification options, contact your sales partner, and provide the ASIN.
The above are the common Amazon warehousing questions and answers compiled by the editor, I hope it will be helpful to you.