Amazon FBA Sellers - THE GAME HAS CHANGED... AGAIN!

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Amazon FBA sellers need to be aware of this GAME CHANGING ACCOUNCEMENT. Whether you are a new FBA seller or an existing Amazon seller, these changes to inventory restrictions will have an impact on your Amazon FBA business.

Last year Amazon introduced ASIN level restrictions that restricted how many units of a particular product you could send to the Amazon Fulfilment centres. The ASIN limit was based on how well each product had previously sold and for new products it was set to only 200 units. This made it difficult to launch new products as many sellers had to find a 3PL to drip-feed stock into Amazon until the ASIN level restriction increased.

Amazon has now decided this approach wasn't the best and has announced the following:

-- More flexibility in managing your shipments with restock limits by storage type --

In July 2020, we announced ASIN-level quantity limits for products stored in our fulfilment network. We made this change to ensure that we can receive and store products for all sellers who use FBA.

We have heard your feedback, and are continuously improving our policies and programmes to better receive and store your products.

Starting April 22, 2021, your account will no longer be subject to ASIN-level quantity limits for all products. Instead, restock limits will be set at the storage-type level, providing you with better flexibility to manage the shipments that you send to Amazon.

-- END OF ANNOUNCEMENT --

Amazon Sellers will now face a restock limit which is a combined maximum inventory level for all of their products.

For example, if your limit was 2000 units you could have 1 product with 2000 units, 4 FBA products with 500 units each, or 10 products with 200 units (or any combination of products and units that added up to 2000).

Even if your IPI allows for unlimited storage (the IPI threshold is currently 500), you will still face maximum inventory restrictions.

Although these changes are good news for new Amazon FBA sellers launching new products, I think they will cause problems for existing sellers with larger inventory quantities.

Will these changes impact your business? Let us know in the comments.
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