Amazon FBA rejects Inventory without Warning
Earlier this month, third-party Amazon Sellers learned without warning that the Amazon fulfillment center (Amazon FBA) would stop accepting their inventory. Read the details of this new development from Amazon below.
When a seller utilizes FBA for shipping and storage of all inventory, it comes as a shock to learn that Amazon’s FBA warehouses can no longer provide this service. Last month, Amazon began notifying sellers – most without warning – that a variety of ASINs, or groups of ASINs, were no longer being accepted to FBA warehouses due to an alleged “lack of space.”
There seems to be no method or algorithm regarding this new development in Amazon FBA, and it has FBA sellers both confused and frustrated. Acceptance of which ASINs by the warehouses is still unknown.
If you’re an FBA seller and this issue hits your Amazon Seller Account, you’ll see this message when you try to process your shipment as usual:
You are already at the maximum inventory allowed for this product, due to capacity or other restrictions. This product must be removed from this shipment.
The reasoning from Amazon is understandable. They want to keep products moving in and out of FBA warehouses, rather than allowing them to just sit there. This new guideline poses a serious issue for FBA sellers. The acceptance of their inventory into FBA storage is now a basis of product sourcing. With no way of knowing how you will sell an item, it’s a bit scary to purchase more inventory.
Some experts see this as an opportunity. “The good news is that sellers who create their own unique listings seem to be unaffected so far.” “This is great news for people creating Private Label, White Label, and bundled products,” said Katharyne Shelton of Blue Sky Suite. Looking to expand your sales and create a better voice for your brand? Now might be a good time to work on that.
Overall, how should FBA sellers handle a possible rejection of inventory by Amazon FBA warehouses? Here are some words of wisdom from a seasoned pro: “My advice is to simply be a little more cautious while sourcing, concentrate on keeping stock levels at two weeks to one-month fulfillment, and look for more items with less competition,” says e-commerce entrepreneur Kat Simpson.