There are many benefits of using the fulfilled by Amazon (FBA) programme that you can find featured in our blog.
But as of April 2021, Amazon has put in new inventory limits that could impact your business. Follow this guide to see how we have been working with third-party warehouses to help navigate these restrictions.
Firstly, what has actually changed for Amazon's FBA programme?
Amazon has replaced ASIN-level quantity limits with account level storage-type limits. This means that you can send in as many units as you like of each product, as long as you don't exceed your account level limits for your storage type. Your storage limit is based on your past sales history and set by Amazon. They are worked out based on the sales volumes from the last 90 days of your account.
NOTE: All shipments in draft, in transit and at the fulfilment centre are included by Amazon in these FBA limits. To make room for more, you may need to delete old draft shipments that haven't been sent to Amazon.
Ok, but how do I find the storage limit for my Amazon account?
My storage limit is too low, can Amazon increase the limit?
Yes and no.
NO: Currently, you cannot request that Amazon increases your limit.
YES: If you increase sales velocity, or remove excess inventory from your account, your storage limit will increase. You can find your excess inventory here (under the Inventory Planning page). If you don't expect products to sell within 2-3 months, don't them send to Amazon.
Remember, Amazon treats the UK and EU as two separate limits, so your EU stock will not impact your UK limits.
But I need to send more products than Amazon allows.
If you need to purchase stock in larger quantities than Amazon allows, we'd suggest looking at a 3PL (third party warehouse) to store stock. That way, the 3PL can then send the stock into Amazon when required, whilst meeting the levels allowed within the FBA limit.
We can help with warehousing in the UK via a partnership with Yeovil Storage Solutions, who provide FBA 3PL services. If you would like us to make an introduction to our warehouse, or just want to chat through your Amazon strategy, don't hesitate to get in touch.
Amazon's Updated FBA Limits: What Do They Mean?
1. Your account will have a storage limit based on sales history. Find it here.
2. You cannot request to increase your storage limit.
3. Only stock products with Amazon that you expect to sell within 2-3 months.
4. Partner with a third party warehouse to be comfortable within these restrictions.