Summary:

1. What you need to know

2. Interesting reads

3. Pro Tip: 3 Tips to Deal with Inventory Restrictions on Amazon, by Kristina Mertens

4. AMZAlert: Advanced monitoring for Amazon Sellers

📰 What you need to know

👉 Amazon is testing a scroll-up on listing images and it looks awesome

👉 New invite only program: FBA Damaged Opt Out

👉 Former Amazon employees plead guilty to $10 million fraud

👉 BOGO goes South. Read about how this seller got 16,000 units 100% off wiped out in 3 hours

👉 Amazon launches TikTok-style feed in push to accelerate social shopping

👉 Amazon announces Rewarded Sponsored Display

👀 Interesting reads

👉 U.S. manufacturing orders in China are down 40% in what a logistics manager described to CNBC as an unrelenting demand collapse

👉 Small Businesses Flock To Walmart, Other Platforms in 2023

👉 How Amazon’s #1 Best Seller Scammers are Stealing Your Sales

🤓 Amazon Pro Tip

Kristina Mertens, Head Of Business Development at Packshack & Sermondo’s Co-Founder comes with 3 super interesting tips on how to Deal with Inventory Restrictions on Amazon

3 Tips to Deal with Inventory Restrictions

When Amazon imposes inventory restrictions, it can be frustrating for brands selling through Amazon FBA (Fulfillment by Amazon). Especially in Q4, the most important time for eCommerce merchants, FBA inventory restrictions can break your neck.

Packshack explains how to deal with them.

What Are Inventory Restrictions?

Inventory restrictions limit the amount of stock that a brand can store in Amazon's fulfillment centers, which can make it difficult for the brand to meet customer demand. Especially in times of high demand, Amazon has often imposed inventory restrictions.

In most cases, these restrictions are put in place to prevent overcrowding in their fulfillment centers. Amazon's fulfillment centers are designed to efficiently process and ship orders, and when they become too crowded, it can lead to delays and other problems. By limiting the amount of inventory that a brand can store in a fulfillment center, Amazon is able to maintain a certain level of efficiency and ensure that orders are processed and shipped on time.

However, there are some things that brands can do to overcome these restrictions and continue to be successful on Amazon.

1 – Be Proactive

One way for brands to overcome inventory constraints is to be proactive and anticipate restrictions. This means monitoring your inventory levels and making sure you always have enough stock in your Amazon warehouse before Amazon imposes any inventory limits. If your inventory is pretty much empty and Amazon then sets inventory restrictions that make it impossible for you to send new, sufficient stock to the FBA center for peak-sales times.

However, if you plan well in advance and have the foresight to send in plenty of inventory before classic demand spikes where Amazon usually imposes temporary strict inventory limits, then you have a good chance of having enough inventory to be in stock over Black Friday, Cyber Monday and Christmas.

You can manage your stock levels with proper software where you can track your stock levels in real time and be notified when you need to replenish your stock.

2 – Diversify Your Fulfillment Strategy

Another option is to diversify your fulfillment strategy. Instead of relying solely on Amazon FBA, consider using other fulfillment options such as self-fulfillment or using a third-party fulfillment provider like Packshack. 

Working with a 3PL helps you maintain control over your inventory and avoid the restrictions imposed by Amazon. A professional fulfillment provider like Packshack allows you to quickly and flexibly switch from FBA to FBM, Fulfillment by Merchant. This way, your products are always in stock for customers to buy, even if they are temporarily not available through Amazon's fulfillment program.

Another benefit of using a 3PL is that it's usually cheaper to store most of your inventory in a third-party warehouse and only replenish smaller quantities at your FBA center, as the storage fees are much lower than Amazon's.

3 – Work With Amazon

Inventory restrictions are annoying and can lead to many negative emotions towards the marketplace giant. Nevertheless, instead of contemplating how to destroy your greatest enemy – the Amazon seller support – you should consider working with Amazon to come up with a solution.

In some cases, Amazon may be willing to work with you to find a way that allows you to continue selling on their platform without being affected by inventory restrictions. This could involve working with Amazon to find additional storage space in other warehouses, or finding ways to reduce the amount of inventory that you need to store in their fulfillment centers.

The Bottom Line

To sum it up: inventory restrictions can be frustrating for brands selling on Amazon, but there are ways to overcome them. By being proactive, diversifying your fulfillment strategy, communicating with your customers, and working with Amazon, you can continue to be successful on the platform even when faced with these restrictions.

If you're looking for a reliable third-party fulfillment partner to help you diversify and add flexibility to your fulfillment strategy, reach out to Packshack. We have more than 30 warehouse facilities in the US, EU and UK, and work with best-in-class fulfillment software that allows you to track and manage your inventory and all order activity at any time.

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