Selling products on Amazon comes with a long list of requirements, from using the right packaging material to managing your inventory. To keep up with a constant stream of orders, Amazon has created storage limits for its FBA facilities. Reaching your limit could negatively affect your sales.
What Are Restock Limits?
Amazon FBA Australia has inventory restock limits on items stored at Amazon warehouses. You can only store so much inventory at an Amazon warehouse.
Amazon FBA inventory storage limits are found in the inventory performance dashboard of your Amazon seller account. You may also receive emails from Amazon when your inventory level is near the limit.
Why Should You Care About Amazon Restock Limits?
Reaching or exceeding your inventory can hurt your Amazon business. You may suffer from extra fees, shipment restrictions, and other issues that keep you from making money.
Here is a closer look at how the restock limits can impact your Amazon FBA Australia profits.
Restock Limits Are Based on Your IPI Score
If you have a professional selling account, the restock limit is based on your Inventory Performance Index (IPI) score. For those with individual selling accounts, the storage limit is set at 500 standard units and 100 oversize units.
Reaching your storage limit may indicate that your sales are decreasing. You may not be moving enough products to keep your inventory at manageable levels.
Exceeding Your Storage Limit Prevents New Shipments
Exceeding your limit also keeps you from sending new inventory to Amazon FBA warehouses. Amazon will notify you when you reach your limit. You are unable to create a new shipment until you get your inventory back below the threshold.
Excess Storage Results in Extra Fees
Amazon charges extra fees for the excess inventory that sits in its warehouses. The storage overage fees are on top of the long-term fees that Amazon already charges.
The overage fee is based on the number of days that the storage limits are exceeded and the volume of the inventory. These fees can quickly add up but are easily avoided with effective inventory management.
How Do You Deal with Amazon FBA Restock Limits?
Amazon recommends selling more items when you reach your storage limit. You may also request to have some of your inventory returned or disposed of, which adds to your costs.
With the following tips, you can avoid reaching your Amazon FBA Australia restock limits.
Prioritize Your Most Profitable Items
Storage limits were previously placed on individual ASINs. The limits are now applied to your overall account. Your worst-selling items may limit room for your best-selling items.
Prioritize available inventory space based on the past sales performance and expected sales of each item. You should also try to leave a buffer for best-selling products. For example, leaving room for a few dozen units can ensure that you have space during a sudden surge in sales of a particular product.
Relist or Remove Stranded Inventory
Stranded inventory uses up inventory space. It also hurts the IPI score for professional seller accounts.
Stranded inventory includes items that are not available for sale. This typically occurs when you delist an item or switch it from FBA to Fulfilled by Merchant (FBM). Relist the delisted items or have them returned to free up inventory space.
Use an Amazon Prep Center to Limit Storage
You do not need to keep all your inventory at Amazon warehouses. Amazon FBA prep services, such as Easy FBA Prep, provide a cost-effective alternative.
You can store the bulk of your inventory at an Amazon prep center to cut down on storage at Amazon’s FBA warehouses. The prices for long-term storage are often more affordable, allowing you to save on storage fees and get rid of excess stock stored with Amazon.
Along with keeping you from hitting your restock limits, a prep center ensures compliance with Amazon’s packaging requirements. You can avoid the hassle of selecting the right poly bags and other packing materials.
For more information on how an Amazon prep center can help with the restock limits, contact the experts at Easy FBA Prep.