A large number of Amazon sellers have seen a sharp drop in inventory capacity, with some sellers exceeding 20,000...

There have been many major events in the cross-border circle in 2021, and cross-border sellers have been performing with joy or sorrow. Two days ago, Amazon announced the cancellation of ASIN shipping restrictions and instead limited the replenishment quantity of the entire account. As expected, a new round of unrest has begun in the cross-border circle.

Before the topic has faded, Amazon sellers found that their inventory capacity has been updated, and the scene that has been replayed many times is repeated: some are happy, while others curse. Is the removal of ASIN restrictions a good thing or a bad thing ? The answer is hidden in the expressions of these people ...

Seller Inventory Capacity Update : Amazon Sellers Have Mixed Feelings of Joy and Sadness

As an Amazon seller, you may happen to receive a "gift" from the platform when you turn on your computer one morning. Look, Amazon's latest gift package for sellers has arrived.

It is understood that Amazon has updated the inventory capacity of sellers, and according to feedback from sellers, the inventory capacity of a large number of sellers has dropped sharply.

A: The inventory capacity was cut in half, but my overall sales volume is not very bad.

B: It has been reduced by two thirds. Why is that?

C: 2021 is heartbreaking. My income has been reduced by 10,000 yuan.

D: I’m down more than 10,000 yuan, which is so annoying.

E: Who could be as miserable as me? 20,000 yuan evaporated overnight!

F: Yesterday, the score was over 500, and the maximum inventory was over 6000. Today, the score dropped to over 400, and the maximum inventory is only 2000.

Feedback from sellers shows that many people’s accounts turned red directly. Basically, they could still place orders for one or two thousand the day before yesterday, and when they refreshed the next day, the inventory capacity directly exceeded 10,000 to 10,000+.

After the inventory capacity exceeded the limit, some sellers were mentally broken and asked: I have exceeded the limit by many pieces, and I don’t know if Amazon will charge me. Regarding this question, some Amazon customer service staff answered: It will not affect the warehouse entry before the 22nd, and there will be no charge for shipments before that time.

Recently, many European and American sellers are going through a difficult time, and Canadian sellers are even more miserable. The editor has learned that many sellers have reported that after the upper limit of all products was changed to 75, they recently found that the ASIN limit in Canada has been reduced to only 50 pieces per ASIN. It is really miserable for Canadian sellers!

Having said that, although the inventory capacity of many sellers has shrunk significantly, there are still many sellers whose capacity remains normal without increasing or decreasing, and some Amazon sellers have directly become large inventory capacity holders.

One of the Amazon sellers said that although his large size was less than 1,000 pieces, a small size that was not often sold actually had 9.99 million pieces. After seeing this number, he was so panicked that he was speechless !

Can I enjoy unlimited storage capacity if my IPI score is greater than 450?

After the inventory capacity is updated, many questions arise in the minds of sellers: How is this inventory capacity calculated? How often is it updated?

Regarding the question of how often the inventory capacity is updated, sellers generally guess that it is updated once a week.

As for the calculation of inventory capacity, many sellers said it is related to IPI. Recently, I saw a rumor in the cross-border circle: Sellers with an IPI score of 450 or above can enjoy unlimited storage capacity. Is this true? Of course not.

From the sellers’ personal experience, although inventory capacity is related to IPI, it is also closely related to product sales and unsalable products . One Amazon seller said that his IPI score has risen to 705 points, but his inventory capacity has decreased by 500.

It is understood that the storage restrictions imposed after the IPI score does not meet the requirements are based on volume (in cubic feet or cubic meters) , which determines the storage space in the Amazon operations center that sellers can use.

The product shipment /replenishment limits set by storage type are based on the product quantity, which determines the number of products that sellers can send to Amazon's fulfillment centers.

Regardless of whether the IPI score is up to standard, sellers will have product delivery/replenishment restrictions set by storage type . That is, if the seller's IPI score is 450 (i.e. no storage space restrictions), the seller still has product delivery/replenishment restrictions set by storage type.

How can sellers overcome account storage capacity limits?

What measures should sellers take after the account storage capacity restriction policy came out ? An excellent Amazon seller summarized the following 6 methods:

1. Increase the number of Amazon accounts;

2. Use overseas warehouse for transit;

3. Improve product development capabilities;

4. Increase the proportion of first-leg air transport;

5. Clear out redundant inventory;

6. Change career.

All roads lead to Rome, which one do you want to choose? Welcome to leave a message to discuss.

Amazon said that the IPI score assessment time for the third quarter is expected to be in mid-May. If the seller's IPI score is lower than 450, it is necessary to take action as soon as possible to improve the IPI score.

The question is, how can sellers improve their IPI scores and get more shipments for themselves? Here are Amazon’s official suggestions↓

1. Improve your 90-day rolling sell-through rate by maintaining a “green” (or “good”) sell-through rate throughout the year . The two main ways to improve your sell-through rate are to improve the balance of sold and on-hand inventory by increasing sales or by removing unsold inventory.

2. Reduce redundant (overstock) inventory . Keeping enough inventory to reach 30-60 days of expected sales is a good guide to help you avoid overstock. Sellers can use Amazon Outlets to sell overstock and out-of-season products.

3. Reduce or avoid long-term storage fees by removing inventory before it reaches 365 days .

4. Fix product information issues in a timely manner. If you have inventory that generates costs but cannot be sold, your IPI score will be reduced, so it is very important to fix product information issues in a timely manner.

In addition, sellers should note that new products within 90 days will not affect the seller 's IPI score .

In terms of clearing inventory, sellers can also use Amazon Outlets to clear inventory. Amazon issued such a notice some time ago ↓

If you sell through Fulfillment by Amazon ( FBA), Amazon Outlet offers you the opportunity to improve your inventory position. Showcasing your products through Amazon Outlet can help you increase sales, improve cash flow, optimize inventory levels, and reduce storage fees.

Sellers can now access Amazon Outlet under the "Programs and Features" section of the main menu of the mobile shopping app . Based on the outlet's seasonal trends and customer marketing focus this quarter, eligible items in categories such as lawn and garden , sports , outdoor , tools and home improvement, and apparel are expected to increase outlet exposure . Customers who frequently shop in these categories will be able to find the store through Amazon homepage ads, direct emails, and more.

Sellers can use the Manage Excess Inventory page to identify products eligible for Amazon Outlet deals and submit deals for approval using the menu to the right of eligible listings.

Final Thoughts

After the inventory capacity limit policy is released, it will inevitably affect the interests of a large number of Amazon sellers, but many sellers also said that the change from single SKU inventory limit to total inventory capacity limit is a good thing for them.

As one seller said, this new policy clearly favors sellers with operational capabilities and inventory capacity. For capital sellers, this policy may slow down the expansion of some big players, leaving small and medium-sized sellers with more time to improve their products and teams.

The editor would like to say that every time a new policy comes, challenges and opportunities coexist. The platform forces sellers to make progress in this way, and sellers have to try their best to make a name for themselves.

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Storage capacity limit

Shipping restrictions