September is off to a tough start! A large number of Amazon sellers have seen a sharp drop in inventory

Entering September, Amazon sellers began a new round of trials. This Monday, Amazon adjusted its inventory capacity as usual, and a large number of sellers had their inventory capacity reduced, which put them at risk. This morning, Amazon made an exception and reduced the replenishment limit again, causing a large number of sellers to have their inventory capacity drop sharply, with the largest drop approaching 40%. How can they prepare for the stocking? Sellers are mentally devastated.

On the other hand, Amazon's new insurance rules officially took effect today. After the first batch of insurance requirements were sent out in mass emails, many sellers received reminders to upload insurance certificates. Some sellers said that if they did not receive insurance certificates within 60 days of the initial notification, their payments would be withheld, and the pace of sellers configuring insurance has accelerated.

The market is in the red across the board, and a large number of sellers have seen a sudden drop in inventory

Since Amazon implemented the replenishment limit, sellers have to face a weekly inventory capacity update. For most people, the inventory capacity update is like opening a blind box. Overall, Amazon's replenishment limit for sellers continues to tighten.

Today, sellers are collectively in a state of mental collapse , and the storage capacity of most sellers has been reduced again . One seller bluntly said: "The entire network is reducing storage capacity!"

According to feedback from industry insiders, the total storage capacity of each seller is different, and the specific data of the reduction is also different. One seller said that the total storage capacity was more than 30,000 before, and this time it was reduced by more than 10,000. The storage capacity of more sellers has been reduced by hundreds to thousands. The specific feedback is as follows:

“——A few days ago, we were able to send out 4,000, but this morning, we only had 400 left;

——The storage capacity suddenly dropped by one third, and the whole line was in the red;

——Storage capacity limit cut by 37%;

——I just went to see Kurong and felt like crying;

——Another 2,000 was cut. I had planned to ship out most of the goods this month;

——I lost 800 and can’t hold on any longer;

——The critical hit in the morning suppressed the joy of the return of the mythical beast, and the inventory was reduced by more than 1,000;

——The storage capacity is low again today. There have been frequent changes recently, so I can’t do it anymore.”

Amazon's storage capacity has suddenly dropped again. Some sellers speculate that it is because there are more and more sellers and Amazon's warehouses are not enough. In addition, the peak season is approaching, so the storage capacity needs to be reduced, otherwise there will be a warehouse explosion.

As the sellers said, the inventory capacity has changed frequently recently, and the inventory capacity has been updated almost every week. On Monday this week , many sellers were just demoted because the used inventory exceeded the new maximum inventory level. Many people’s replenishment restrictions turned on the red light, and the idea of ​​sending more goods after the update was completely ruined. A seller who could previously ship about 60,000 goods had his inventory capacity shrunk again: "2,500 less, what should I do, should I take a holiday?"

Similar feedback is heard frequently, such as "It's too late to play, it's all red", "I just used the remaining quota to create a shipment and it turned red", "It's dropping every week", "My storage capacity has dropped", etc. This is even worse for sellers who already have limited storage capacity.

A seller regretted it deeply: "I am crying because of my stupidity. Last week, there were more than 1,000 items of inventory that were not shipped. I always wanted to wait for updates to ship more items together. Now it is completely fixed. I will wait slowly..." In order not to miss any shipping opportunity, some sellers said that they would check the replenishment page every day and create the shipment as soon as there is inventory capacity.

In fact, in order to ship as many goods as possible, sellers have tried every method, including clearing out redundant inventory, selling at low prices, and off-site promotions. Now that the unsaleable goods have been almost cleared out and sales have been steadily increasing, sellers are looking forward to the upcoming update of inventory capacity. However, after the data was updated, many sellers were disappointed: That’s it?

This is the most criticized part of the current replenishment restrictions. Neither increased sales nor higher IPI scores work. Last week, sales were OK but the inventory capacity dropped by a few thousand, or the score increased by 30 points but the inventory capacity remained the same. Some sellers were speechless: "IPI is already 700, but the quota is only 1,400. The more you sell, the more you drop." However, a few sellers were very surprised. The inventory capacity went against the trend despite the drop in sales. There was no logic to follow.

With inventory capacity reaching its limit and products on sale facing the risk of being out of stock, preparing and shipping products has become a major problem for sellers. In order to replenish stocks in time, some sellers have taken risks and tried to break through the delivery, and the risk of being punished by Amazon later is well known.

The inventory capacity adjustment is annoying, but there is another big event in September - Amazon’s new insurance regulations officially come into effect.

If the insurance certificate is not received within 60 days, the seller may withhold payment

In the few days before September, the number of insurance event consultations received by the editor increased significantly.

Amazon has previously clearly notified that starting September 1, 2021, the platform's Business Solutions Agreement will require sellers with monthly sales of $10,000 or more on Amazon.com to purchase product liability insurance and designate Amazon as an additional insured.

Regardless of whether or not you receive the email, as long as the account reaches a certain sales limit of $10,000 per month , sellers will need to configure insurance, regardless of the category.

Shortly after the initial notification email was sent, sellers received another email asking Amazon to upload a product liability insurance certificate:

The email states that this problem log is to remind you that according to the email titled "Expanding A-to-z Guarantee to protect customers and sellers (US)" sent by Amazon around August 10, you need to submit proof of liability insurance required for selling goods.

This is a mass email from Amazon urging sellers to apply for insurance. Sellers who have not submitted certificates, sellers who have submitted certificates and are under review, and sellers who have passed the review have all received it.

What happens if I don't provide proof of insurance?

Without insurance, Amazon will seek reimbursement from the seller for the costs of settling the claim, and may also restrict the seller from selling goods in specific categories or even suspend the account until the seller provides proof of insurance.

This week, a seller shared a new message, "If we do not receive your proof of insurance within 60 days of Amazon's initial notification, or cannot confirm the information you provided, future payments will be withheld from your seller account until your proof of insurance can be verified. If you still do not take any action, or we cannot verify your proof of insurance within 90 days of initial notification, we may prohibit you from continuing to sell products on Amazon.com."

As the platform continues to expand, Amazon is determined to promote insurance policies, and sellers have also accepted this reality. A few days before September, sellers began to rush to purchase insurance, and those who have not received the insurance policy for a long time can't help but feel anxious. In fact, although the new regulations have come into effect, Amazon still gives sellers time to purchase insurance and review, so there is no need to be too anxious about this.

However, sellers cannot avoid this expense. "After buying insurance, I feel like I have thrown away thousands of dollars. The costs of doing business on Amazon are getting higher and higher, and the conditions are getting more and more demanding," said a seller.

The first day of September is not a happy start. After the hardship in the first half of the year, many sellers still have considerable sales, but the profits are no longer the same as before. As the highlight of the year, how will this year's peak season unfold?

Amazon, storage capacity, insurance