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Amazon warehouse policy adjustment

Amazon warehouse policy adjustment

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According to the seller, Amazon’s storage restriction policy will change significantly. Storage constraints will replace quantity replenishment restrictions (calculated by volume). The IPI performance assessment and accompanying limit will be revised monthly and valid for one month.

The replenishment restriction previously limited the seller’s replenishment quantity, whereas the storage limit limited storage volume. Sellers had to evaluate both limits. The seller’s warehousing policy merges the replenishment restriction and storage capacity limit into a storage limit, simplifying and boosting efficiency.

Amazon sellers may face greater costs if overage inventory surcharges, storage utilization surcharges, and monthly inventory storage prices rise.

0 1 removes additional replenishment limits

Amazon merchants must restock and store. The seller’s previous and forecasted sales determine the replenishment limit for each storage type (such as bulky items, clothing and shoes, etc.). Shipments stop if replenishment limits are exceeded.

Sellers can store up to cubic meters of product in Amazon fulfillment centers. IPI inventory performance indicator score. If the limit is exceeded, shipments will be suspended and excess storage fees imposed.

The seller’s new policy eliminates the replenishment restriction and replaces it with volume-based storage limits updated monthly. Amazon will also estimate storage limits for the next two months in addition to the next month. The storage limit manager allows sellers to request additional storage up to five times a month.

The storage limit calculation considerations are mainly historical projected sales, the ability to store inventory, and IPI scores. The IPI performance assessment was once every quarter before, but now it will be once every month. Sellers can improve their IPI scores by adjusting their inventory management performance in a timely manner.

New Policy on Warehousing

The original storage capacity limit was merely the warehouse’s inventory. The warehouse and transit inventory are counted now. The built package will be prohibited and charged for extra storage if its anticipated volume exceeds the standard. fee.

Judging from the breaking news, the new policy on warehousing will be implemented after March

Hugo cross-border consulted an Amazon investment manager, who stated there will be suitable modifications, but they must wait for official notification, which is expected in a few days.

Some sellers noted that the investment manager told them a new policy notice will be posted soon. The new policy favors new accounts, while veteran accounts must use their talents based on dynamic sales, account health, and IPI scores.

Senior dealers expect storage constraints to persist after the outbreak. FBA Merchants prepare and ship things in overseas warehouses, which the platform passes on to sellers, to save space. Without new warehouses and commodities, the platform will be pricey. Sellers who need to expand must deposit things in a third-party warehouse or ask for more payment, which implies taking on this cost and risk.

0 2 Add storage utilization surcharge

In addition to the changes in the inventory limit policy, in terms of storage fees, Amazon’s multiple sites have added, added, or increased changes.

For sellers who store in the fulfillment center and whose inventory is relatively high relative to their recent weekly sales volume, the Amazon US station will impose a storage utilization surcharge. The sellers affected are mainly professional sellers whose storage utilization rate is higher than 26 weeks.

In addition, starting from April 15, 2023, the US station will also charge a surcharge for overage inventory, increasing the surcharge for inventory ages between 271 and 365 days. Storage age between 180-270 days product, an overage inventory surcharge will be levied, excluding clothing, footwear, bags, jewelry and watches.

Amazon US station inventory storage fees will likewise rise on February 1, 2023! No peak season storage prices (January-September) rise by $0.04 per cubic foot for standard-sized items and $0.03 for big items. Peak season storage charge (October–December): sortable goods stay the same, non-sortable large goods go up $0.20 per cubic foot.

Amazon officially reminded us that the biggest “culprit” that may cause additional storage costs is overage inventory. Compared with the monthly storage fee, the overage inventory surcharge is high, especially for overage inventory over 365 days. In the peak season of the fourth quarter, the overage inventory surcharge may be 13 times higher than the usual monthly storage fee!

According to Hugo’s cross-border understanding, the storage fee of the Japanese station has also changed. Beginning April 1, 2023, monthly storage fee rates for apparel and footwear and oversized and oversized items will remain the same, and rates for other small and standard-sized items will increase by 10%. From April 15th, if the storage age is between 271 and 365 days, an overage inventory surcharge will be levied at 6.096 yen per cubic decimeter per month.

Regarding the above statement, many sellers said that the increase in Amazon’s storage fees will bring new cost pressures to sellers, and the real test in 2023 will be the control of sellers’ inventory turnover rate!

How Fulfillmen Can Help You

If you’re looking for ways to enhance your e-commerce solutions, we can help you here at Fulfillmen.

Fulfillmen is the best Chinese fulfillment center. We help e-commerce entrepreneurs from China and all around the world.

We work with e-commerce solutions, logistics, dropshipping, product sourcing, and many more. Just reach us out and we’ll help you with your needs! You can reach us out here.

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