Amazon announced it has begun to loosen its grip on FBA restock limits on December 21, 2021.
Earlier this year, Amazon began limiting its FBA stock limits due to several factors including the global pandemic, supply chain concerns, labor shortages and more. However, as of December 21, 2021, Amazon announced changes to these limits.
Amazon Begins Relaxing Restock Limits
Amazon recently invested in hiring and expanding their fulfillment network and was able to increase the restock limits for some sellers and plans to extend this to more sellers in 2022.
Additionally, effective January 1st, 2022, the Inventory Performance Score (IPI) threshold for FBA storage limits will decrease from 450 to 400. Amazon stated that “with this IPI change, less than 10% of sellers will have storage volume limits.”
The IPI score is based on a ranking of your FBA performance and is calculated from four metrics – in-stock rate, sell through rate, excess inventory percentage, and stranded inventory percentage. So, for those who are trying to grow their Amazon FBA business, don’t forget to check your IPI score and make efforts to improve it; the higher your score the more space Amazon provides to store product.
Ultimately, the change in storage limits will help sellers increase sales and resolve stocking issues.
Amazon also provided additional details on new business solutions and tools for sellers.
- FBA New Selection: This program offers expanded benefits including free storage, free removals, and free return processing for a limited time.
- Restock Inventory: This tool takes into account your sales history, demand forecast, and replenishment settings to help optimize inventory planning.
- Manage Inventory Health: This page enables you to manage excess and aged inventory in one place to make decisions around repricing, advertising, and removals.
The full announcement is below.
These limits put in place are one of the many hurdles that sellers have had to overcome over the past two years. If you are looking for guidance on the best way to manage your inventory, schedule a consultation with our team to see how we can best assist you in this environment.
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