Early last month, Amazon announced via email that starting March 31, 2022, Flammable and/or Aerosol storage increase requests will no longer be accepted.
Amazon will base your storage allocation limit by seller performance, and how quickly your inventory turn-around time is.
This will potentially cause issues for Brands and Sellers who sell flammable goods. We would like to discuss what this means for Brands, and what course of action we recommend in the event of reaching the storage limit for Flammable or Aerosol dangerous goods.
How Will this Change Affect FBA Sellers?
It will affect those who are selling flammable (and Aerosol) Dangerous Goods by limiting the amount they can have stored at Amazon Fulfillment Centers at one time. In the past, sellers could request increases once they have reached the limit, and often the request was granted.
Due to this change, Brands/Sellers who are relying solely on FBA may want to consider a Hybrid approach. This can be done by beginning to sell FBM (Fulfillment by Merchant), meaning shipping orders directly from your warehouse (or from an authorized 3rd party’s warehouse).
If you are interested in working towards a Hybrid approach, our team of experts at Retail Bloom can help you, as we specialize in assisting clients with achieving a Hybrid Strategy. We offer unique solutions such as warehousing inventory for our Wholesale clients. Contact [email protected] for more information.
What is the Reason for this Change?
Amazon has experienced an increase in the number of flammable dangerous goods recently, which could put employees and their fulfillment centers at safety and health risks. Therefore, Amazon is limiting the number of Flammable goods which are being stored at their FCs, creating a safer working environment.
How Big is the Impact and What Factors Should You Consider?
The impact will vary from brand to brand, again, depending on your product type(s). This will limit the amount sellers can have stored at Amazon FCs for any products that are deemed flammable. This also affects all products stored in Aerosol containers. In general, the biggest factor going into what influences your storage limits are account performance and inventory turnaround.
Will this Require FBA Sellers to Change their Existing Processes?
Brands and Sellers will need to either adjust their forecast to reflect the lower volume that is getting sent to Amazon to be sold. Or they will need to adapt a hybrid approach to supplement lost FBA sales due to the storage limit. The change will provide an opportunity to evolve and make swift changes to get ahead of the curve, taking steps to help ensure your sales forecast does not take an unexpected dip due to these changes.
With the constant updates in online marketplaces, it’s important to stay up-to-date with the latest changes. If you are a client looking for additional information, contact your strategist or if you are interested in learning more about how Retail Bloom can assist your brand efforts in online marketplaces, schedule a consultation with our team.
For more updates on marketplaces, visit our full Marketplace Updates content gallery.
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