What's going on with Amazon's stock-replenishment restriction email? Why is it restricted?

Recently, many merchants who opened stores on Amazon have received official emails from Amazon. The subject of the email is to restrict merchants from replenishing stocks. Some merchants do not quite understand the purpose of this email and want to know why the platform would issue such an email. Let’s talk about what happened.

What's up with Amazon's restocking restriction email?

After the replenishment restrictions are updated, approximately 5% of Amazon sellers will be restricted from replenishing goods. This replenishment restriction only applies to sellers of standard and clothing warehousing types.

Amazon said it will adjust the replenishment limit so that all sellers can store at least four months of inventory in Amazon Logistics. All sellers using Amazon Logistics will receive limit updates. After this update, about 5% of Amazon Logistics sellers will temporarily be unable to replenish more goods because their inventory levels are already high.

In response to this, many sellers revealed that Amazon’s US site has experienced a significant reduction in inventory capacity.

According to sellers' speculation, the reason why Amazon reduced its warehouse capacity may be because Amazon canceled its warehouse expansion plan and sublet a large number of warehouses, resulting in limited storage capacity during the peak season; Amazon laid off nearly 100,000 employees, resulting in insufficient manpower and hindered delivery.

Some sellers believe that this reduction in storage capacity will have a huge impact on many sellers. On the eve of the peak season last year, many sellers had difficulty preparing for the peak season due to shipping restrictions and could only clear their inventory at low prices. If Amazon insists on doing so this year, its financial report at the end of the year may also be affected.

It is worth mentioning that from September 1, 2022, Send to Amazon will replace the "Ship/Replenish" workflow in all Amazon malls.

August 31 is the last day that you can create a shipment using the Ship/Replenish workflow. Starting September 1, all new Amazon Logistics shipments must be created in Send to Amazon, or through Amazon Marketplace Web Service or the Selling Partner API.

If you created a shipment in Shipment/Replenishment before September 1, 2022, you can still view the shipment details in Shipment Queue. The details include tracking and shipment discrepancy information.

The content of Amazon's replenishment restriction email mainly states that the replenishment restrictions will be adjusted to require Amazon merchants to store at least 4 months of sales demand in Amazon logistics. Therefore, this adjustment will directly result in 5% of merchants being unable to replenish more goods.

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