Amazon Sellers Policy News: Amazon Ends Process of Commingling Inventory
As reported on in our blog several weeks ago, Amazon is ending the use of commingling inventory with the deployment of their new barcode requirements. There are several key factors that resellers and brand owners should both be aware of going into the next few weeks. In this blog, we break down what the end of commingling inventory means for sellers, what changes are happening to barcodes, and discuss options for sellers when Fulfillment by Amazon (FBA) mishandles your inventory.
What was Amazon Commingling Inventory?
Under former Amazon policy, sellers with the same material product would occasionally have their inventory used to fulfill orders from other sellers in order to speed up the delivery process for customers. Besides this being a general annoyance to sellers, it also could lead to account suspensions if any one of the sellers were suspended for an issue related to the commingled inventory.
For this reason, sellers made use of Amazon’s FNSKU labels to differentiate their products from others that were materially the same. This would force Amazon to distinguish the two products, preventing them from being used to fulfill other sellers orders, and preventing suspensions related to other sellers. As part of new Amazon policy updates, commingling has been discontinued.
Changes to FBA Barcode Requirements
Starting on March 31st, all FBA sellers are required to make use of new barcode requirements. For brand owners/first party sellers, you are no longer required to use Amazon’s FNSKU barcodes to differentiate your products from resellers. Use of manufacturer barcodes will separate your inventory from other sellers and is recommended.
For all resellers, products must now make use of Amazon’s FNSKU barcodes, rather than manufacturer barcodes. This distinction in requirement will keep your products separate from other sellers and allow you to continue profiting from reselling.
Amazon FBA Lost Inventory Claims
One issue we often see at Amazon Sellers Lawyer is clients coming to us with cases of lost FBA inventory. While Amazon will occasionally settle these claims through filing for reimbursement, they often require outside legal pressure to get a positive result for sellers. Under Amazon’s Business Solutions Agreement (BSA), sellers are required to handle disputes against Amazon through arbitration rather than a public court. Arbitration is a private legal proceeding which behaves similarly to courtroom arguments, but with a private arbitrator handing out the legally binding decision at the end of the case.
For lost inventory claims, you are required to send a demand for arbitration to both Amazon and the relevant governing body for arbitration in your country. You should also have experienced legal representation helping prepare your case to ensure the best result possible.
Contact Amazon Sellers Lawyer Today!
If you are facing any number of issues with your seller account on Amazon – including FBA losing your inventory – contact the ASL team today! Our experienced team has been exclusively focused on assisting with seller issues since 2016. Call us at 212-256-1109 or fill out our online form here.
About the Author
CJ Rosenbaum, Esq.
CJ Rosenbaum is the founding partner of Amazon Sellers Lawyer. He’s been practicing law since 1995, and since 2016 his firm has focused exclusively on helping Amazon sellers deal with issues like suspensions, intellectual property disputes, and withheld funds.
CJ has written six books on Amazon seller legal issues including the Amazon Sellers’ Guide to Copyright Law. He has spoken at major industry events like the Prosper Show, Global Sources Summit, Retail Global. CJ also works with the Amazon Sellers Lawyer team to provide free content for Amazon sellers. This is available through their online blog and YouTube channel, frequently covering major Amazon updates and important topics relevant to the seller space.
Through BrandProtectionAmazon.com, the firm also supports brands in protecting their products. This gives the team the unique opportunity to learn from case wins on both sides of the fence, strengthening protection for both the sellers and brands that Rosenbaum & Segall P.C. represents.
Amazon repeatedly rejecting your Plan of Action? Amazon Sellers Lawyer handles suspension appeals and account reinstatement cases – including arbitration against Amazon when they’re withholding seller money. Contact us to discuss your situation and figure out the best path forward.