• Skip to primary navigation
  • Skip to main content
FbaZoom

FbaZoom

Logistics, Warehousing, FBA Prep Support for Amazon FBA sellers, and MultiChannel Pick and Pack Support

  • Home
  • FBA Prep
    • FBA Prep Guide
    • 3PL Product Inspection Services
  • Pick & Pack
    • Ecommerce Product Fulfillment – Getting Your Order to the End Customer
    • Retail Arbitrage Prep (RA) Guide for FBA
  • Storage & Warehousing
    • Warehousing Your Ecommerce Products – Best Practices
    • FBA Storage – A Guide on Storing FBA Products
  • Logistics
    • International Logistics – A Complete Guide
  • Pricing
  • Contact Us
  • More
    • The Lifecycle of a Product – From Sourcing to Your End Customer
      • Building Your Brand – Choosing the Right Ecommerce Products to Maximize Amazon Sales
        • Product Research – Finding an Amazon Best Seller for your Brand
        • Product Sourcing – Finding the Right Supplier
        • Value Negotiating – How to get the Best Price from Your Supplier for Your Ecommerce Product
        • Next Steps After Your Ecommerce Product has been Sourced
      • International Logistics – A Complete Guide
        • International Shipping – Finding the Best Value in Balancing Cost, Timeline, and Reliability
        • Customs Clearance for Ecommerce Products – Navigating Customs and Border Protection (CBP) Requirements
        • USA Port Pick Up – The Process of Getting Your Ecommerce Goods Off of the Vessel
        • Domestic (USA) Trucking – Getting Your Ecommerce Products from Port to Warehouse
      • Warehousing Your Ecommerce Products – Best Practices
        • Amazon Partnered Carriers – How to get Your Ecommerce Products to Amazon FBA
        • Ecommerce Product Fulfillment – Getting Your Order to the End Customer
        • FBA Storage – A Guide on Storing FBA Products
    • FbaZoom Knowledge
      • FbaZoom – 101
    • 3PL Product Inspection Services
      • FBA Prep Guide
        • Private Label Prep for FBA Products
        • FBA Prep For Beginners
        • Marketing Inserts for Beginners
        • FNSKU Label Guide
        • Sold As Set Label Guide
        • Amazon Expiration Date Guide
        • Amazon Product Bundle Guide
        • Polybag Guide for FBA
        • Bubble Wrap Guide For FBA
      • Product Inspection Guide for FBA Sellers
        • Product Repackaging for Amazon Sellers
        • Product Inspection In China
    • Retail Arbitrage Prep (RA) Guide for FBA
    • Freight Forwarder Storage – A Complete Guide
      • E-Commerce Storage – The Complete Guide
      • FBA Storage – A Guide on Storing FBA Products
    • International Logistics – A Complete Guide
      • The Lifecycle of a Product – From Sourcing to Your End Customer
        • Building Your Brand – Choosing the Right Ecommerce Products to Maximize Amazon Sales
          • Product Research – Finding an Amazon Best Seller for your Brand
          • Product Sourcing – Finding the Right Supplier
          • Value Negotiating – How to get the Best Price from Your Supplier for Your Ecommerce Product
          • Next Steps After Your Ecommerce Product has been Sourced
      • China to USA Shipping
        • International Shipping – Finding the Best Value in Balancing Cost, Timeline, and Reliability
          • Foreign Trade Zone
          • Container Stuffing
          • Container Freight Station – A Guide
          • Container Lashing
          • Demurrage
        • Customs Clearance for Ecommerce Products – Navigating Customs and Border Protection (CBP) Requirements
          • How to Get an EIN Outside the U.S.
        • USA Port Pick Up – The Process of Getting Your Ecommerce Goods Off of the Vessel
          • Bonded Warehouse
            • Types of Bonded Warehouse
            • Last Free Day
          • Domestic (USA) Trucking – Getting Your Ecommerce Products from Port to Warehouse
        • Warehousing Your Ecommerce Products – Best Practices
          • Amazon Partnered Carriers – How to get Your Ecommerce Products to Amazon FBA
          • Ecommerce Product Fulfillment – Getting Your Order to the End Customer
          • FBA Storage – A Guide on Storing FBA Products
  • Show Search
Hide Search

FBA Inventory Limits – A Q4 Guide of 2022

Who is Affected by Amazon’s Restock Limits in October 2022?

If you are reading this – your FBA inventory limits were slashed in the last couple weeks. You are not alone. Amazon alleges the recent slate of restock limits only affected 6% of US Sellers. However, a deluge of feedback from sellers says otherwise. In fact, we’ve seen veteran sellers report their inventory limits being slashed anywhere from 30% – 70%.

One veteran seller reported a 30% cut in inventory limits.

Another seller commented that their restock limits were cut by 50%.

In the worst cases, sellers saw restock limits slashed by 70%.

Amazon replied to these comments by issuing a statement: “To ensure a successful holiday season, we are updating our standard and apparel restock limits to allow all sellers to have 3-4 months of inventory in FBA, including accounting for seasonality and scheduled deals.”

What does this mean for you? Do you know what exactly the restock limits are? What is your plan to manage excess inventory? This guide explores these questions and answers to ensure your Q4 is protected against these seasonal inventory limits.

What are Q4 FBA Inventory Limits?

In October 2022, Amazon rolled out its seasonal restock limits for FBA Sellers. The holidays bring big traffic for e-commerce sellers. So when Amazon limits their ability to restock inventory – it’s a problem.

Why did Amazon Limit my FBA Inventory?

Amazon does not want to receive more products than it will sell. Amazon emphasizes floor space for its best sellers during Q4. Smaller sellers (allegedly, only 6% of sellers), received notice that their restock limits are being slashed. Where everyone seemingly got hit by these cuts – in Amazon’s eyes, if you aren’t first, you are last. They want to reserve space for their best sellers while everyone else gets the short end of Q4.

How do FBA Inventory Limits work?

FBA inventory limits are generated by evaluating your IPI score and Sell-Through Rate among many variables. Amazon’s algorithm communicates their confidence in a brand to sell product at a rate that is most profitable for Amazon.

What is an IPI score for Amazon Sellers?

In short, an IPI score is an Inventory Performance Index. It summarizes the collective health of your inventory in Amazon’s fulfilment network. It utilizes three basic variables to build a score between 0-1000 that sellers are evaluated by:

  • Excess Inventory
  • In-stock Inventory
  • Stranded Inventory

How to Manage FBA Inventory in Q4?

Managing your FBA inventory limits in Q4 is a balancing act for sellers. Even the best planned supply chain and forecasting can be turned upside down if Amazon simply refuses to accept your units. Here are the best practices we recommend to manage FBA inventory limits in Q4

  • Keep Your Supplier Close
  • Balance Sell Through Rates with 60 Days of Supply
  • Reduce Excess Inventory
  • Plan for Contingencies in Inventory Shortages
  • Lower Product Demand if Running Low on Product
  • Partner with a Trusted 3PL to hold extra FBA inventory

When will Amazon Increase Restock Limits?

Amazon historically has loosened its grip on restock limits after Q4, in the middle of Q1. Any experienced seller knows, the Q4 wave rides well into Q1. After all, many shoppers simply receive cash money as gifts for the holidays. And that money tends to burn holes in pockets if not spent! So, sellers will continue to see a high volume of sales well after Christmas going into February.

Consequently, sellers can expect to see restock limits normalize in February, once the dust has settled for the Q4 holiday hustle. So make sure you plan accordingly with your supplier, shipper, and 3PL partner to get stock going again into Amazon’s fulfillment centers.

Written by:
Edward Nickerson
Published on:
November 9, 2022

Categories: Uncategorized

Fba Zoom - Amazon FBA Sellers Logistics Warehousing Support - Ecommerce specialists in 3PL Logistics and Fulfillment Services

Footer

FbaZoom

(833)939.3227
819 Anita Street
Chula Vista, CA 91911
USA

Copyright © 2023 · Atlas Daedalus LLC · San Diego, California · [email protected] · 833.939.3227

Keep In Touch

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

Terms and Conditions

Privacy Policy

  • Home
  • FBA Prep
  • Pick & Pack
  • Storage & Warehousing
  • Logistics
  • Pricing
  • Contact Us
  • More