What is the difference between Amazon replenishment limits and warehouse capacity?

Merchants who open stores on Amazon will definitely come across terms such as replenishment limits and warehouse capacity. In fact, they can reflect how merchants manage the inflow of new inventory and the use of physical space in the operation center. So what is the difference between Amazon's replenishment limits and warehouse capacity? Next, we will explain this to you.

1. Replenishment limits and storage limits are two different limits. The former is used to manage the inflow of inventory, while the latter is used to manage the actual space usage of the operation center.

2. Replenishment limits are calculated based on historical sales and forecasted demand for both the seller and the specific ASIN. The maximum number of shipments we can send is equal to the maximum inventory level allowed, minus the inventory limit usage.

3. Storage limits are related to our Inventory Performance Index score, which measures our ability and efficiency to manage our existing FBA inventory.

What to do about Amazon's storage capacity limitations?

1. Request for a position increase

Amazon reviews storage limits every month. If you have sold 8% or more of your inventory each week for the past 9 weeks, you are eligible for an increase. Sellers can also contact Amazon Seller Support to request an increase.

2. Increase sales rate

Amazon will assess the sales rate of your inventory products within 90 days. The higher the sales capacity and order level, the higher the sales rate, and the lower the inventory limit.

3. Deal with inventory backlog

Dealing with inventory backlogs and clearing inventory during seasonal changes is an important part of inventory management. Sellers can choose to use official clearance promotion tools to effectively help reduce inventory pressure. For example, a limited-time (usually 2 weeks) promotional offer on the Outlet page is a promotional means of clearing backlogs, which can help sellers effectively increase exposure and quickly clear backlogs!

Sellers can also use the inventory management tools provided by Amazon Logistics (FBA) to clean up redundant and idle inventory in a timely manner, and then recover the value of goods, freeing up space for new and popular products to enter the warehouse during the peak season. For example, Amazon Logistics' bulk clearance plan can quickly process inventory that was originally planned to be abandoned or destroyed. As long as an order is successfully created, storage capacity can be released immediately, and the value of goods can be recovered at a price of 5%-20%.

Merchants should not panic when they encounter storage capacity restrictions. We can take the above methods to remedy the situation and resolve the problem caused by storage capacity restrictions. Well, today's sharing ends here. I hope this article can help you!