Amazon first introduced ASIN level quantity limits for FBA products due to supply chain problems caused by the COVID-19 pandemic. When Amazon announced the policy, the company said volume limits would help sellers use the space for their most commonly used FBAs and products. Amazon continues to revise the limits and new limits are now at the seller level and are subject to change anytime.
We have analyzed the new restrictions in recent weeks and tried to decipher how Amazon computes them.
- Every seller gets a minimum limit of 1000 units per storage type - Standard Size, Oversize, Apparel, Footwear.
- The initial limit at a storage type seems to have been influenced by the sum of the 3 highest monthly unit sales in the past 12 months.
- The limits seem to adjust once or twice a week based on the last 3-4 months of unit sales. Several sellers have reported both consistent increases and consistent decreases in limits.
- These are "restock" limits and not storage limits. Even though your IPI-based storage limit could be unlimited, you won't be able to create shipments or send additional units if your restock limit is below your current inventory level.
- Amazon indicates that they will continually assess network capacity to adjust the limits. It's not clear if and when Amazon will account for seasonality to allow an increase in limits. So far, we haven't seen any special consideration for a limit increase to allow for the expected surge on Prime Day.
The good news is that there are few expert tips to manage these limits. The following suggestions will get you back on your feet in no time
- Do not keep shipments in a working state too long. Every shipment (excluding closed or deleted) counts in the restock limits. Delete shipments that are not necessary or those with units that don't sell well. Replace these with shipments where you can quickly send in the units and that you expect to sell well.
- Improve Sales. Revise your advertising and pricing to temporarily improve unit sales, which will result in increased utilization for creating shipments. Consider Multi-Channel Fulfillment to fill your orders on other sales channels like eBay or Shopify.
- Request to remove inventory. Use this tactic carefully as this won't provide additional utilization if you are way over your limit already. It's important to understand the difference between restock limits and storage limits.
- Maintain a buffer. Amazon can cancel any "working" shipment arbitrarily if you are above the latest limit. If you want to avoid this, have a utilization buffer or ensure to print labels and quickly pass the cartons/pallets to the shipper.
We hope these tips help you avoid common pitfalls and get you back on top of things.