New Restock Limits driving most FBA sellers out of business?
So I cannot understand this new restock limit policy and what its intended to do other than ruin most FBA businesses.
We are a growing FBA seller with high turnover and a very good (almost 600) IPI score. The only way that my business grows (and that of almost all FBA sellers) is by sending new items into FBA as well as keeping your old ones in stock.
As of a few days ago our limit was 27k units, and we have about 25k of that utilized.
Today upon coming to work I noticed that our limit has been reduced to 18k.
So what does this mean for us and I’m assuming thousands of other FBA sellers?
Well for one, we can no longer send in more products. So that means the SKUs we have at Amazon, those will go out of stock, our overall sales go down, and presumably our limit will get decreased again.
We won’t be able to add any new FBA SKUs to our catalog, which is again how most sellers grow sales by increasing they offering count, so sales again will decline, and again our limits will lower.
And lastly, since we can no longer create new shipments and those limits will keep getting lower I have to lay-off my warehouse staff. I employ people to prep and ship our products, and if we cannot prep then I’m just paying them to sit around and doing nothing.
I just cannot for the life of me see how this new system doesn’t result in everyone’s limits getting lower and lower and driving everyone out of business?
Once again, our sales only grow when we grow our catalog by sending in new skus and keeping current ones in stock. Now that we can’t ship, our sales decrease. Now that sales decrease, limits will drop further. With limits dropping further, we can only ship & send even less, hence sales continue to shrink as do these limits.
How can anyone, established or new seller, and especially new sellers grow their business?
This is honestly a red alert and the worst seller policy I have every seen Amazon do.
Please someone at the company, help me understand how this doesn’t effectively put us out of business???
New Restock Limits driving most FBA sellers out of business?
So I cannot understand this new restock limit policy and what its intended to do other than ruin most FBA businesses.
We are a growing FBA seller with high turnover and a very good (almost 600) IPI score. The only way that my business grows (and that of almost all FBA sellers) is by sending new items into FBA as well as keeping your old ones in stock.
As of a few days ago our limit was 27k units, and we have about 25k of that utilized.
Today upon coming to work I noticed that our limit has been reduced to 18k.
So what does this mean for us and I’m assuming thousands of other FBA sellers?
Well for one, we can no longer send in more products. So that means the SKUs we have at Amazon, those will go out of stock, our overall sales go down, and presumably our limit will get decreased again.
We won’t be able to add any new FBA SKUs to our catalog, which is again how most sellers grow sales by increasing they offering count, so sales again will decline, and again our limits will lower.
And lastly, since we can no longer create new shipments and those limits will keep getting lower I have to lay-off my warehouse staff. I employ people to prep and ship our products, and if we cannot prep then I’m just paying them to sit around and doing nothing.
I just cannot for the life of me see how this new system doesn’t result in everyone’s limits getting lower and lower and driving everyone out of business?
Once again, our sales only grow when we grow our catalog by sending in new skus and keeping current ones in stock. Now that we can’t ship, our sales decrease. Now that sales decrease, limits will drop further. With limits dropping further, we can only ship & send even less, hence sales continue to shrink as do these limits.
How can anyone, established or new seller, and especially new sellers grow their business?
This is honestly a red alert and the worst seller policy I have every seen Amazon do.
Please someone at the company, help me understand how this doesn’t effectively put us out of business???
7 replies
Seller_Vf10jieAEG9f1
Ours has gone from unlimited to 11,000 a few days ago and then 7,000 today (we have 11,500 units in stock). So we are now 3,500 units over and cannot restock items going out of stock.
Seller_N7YdwdEFMGmuR
same, we were almost at our limit so we removed a load of stock to give us room to restock some of our popular items, a few days after doing so our limits dropped even further, so we now cannot restock at all. Popular items out of stock, can’t run any prime deals as don’t have the stock, don’t see how anyone benefits from this, the sellers, amazon, the buyers all suffer. Amazon need to find a new solution to their warehousing problem
Seller_24Bec1n3QCVmi
I completely agree this situation is awful and that Amazon should either find another method of dealing with the lack of space, or at least be more transparent about the way they are allocating restock limits.
However, you’re saying that amazon should make more warehouses, but think for a minute about how difficult that is to do. Warehouses the size Amazon would need are huge, and would require a lot of land, a lot of money and a lot of staff. They would also take a considerable amount of time to build. Amazon may well be in the process of building more warehouses but we will likely not know until they are completed.
Seller_N7YdwdEFMGmuR
been doing some number crunching and genuinely have no clue how amazon are calculating these limits. Below is a list of all of our current FBA items, with current stock levels, sales for last 90 days, and subsequent over/understock levels for each item. Based on the 90 days sales figures for each item i calculate our stock limit should be 1986, this would give us enough room to stock amazon with 3 months of stock. The limit given to us by amazon is 1074. AM i missing something here? Has anyone else done the same exercise? Our popular items will run out of stock very soon, and because of our stupid allowance we are unable to restock them, which i’m guessing will mean our limits will drop even further
Title | Current FBA Stock | past 90 days sales | overstocked by |
---|---|---|---|
misc sku 1 | 57 | 222 | -165 |
misc sku 2 | 7 | 129 | -122 |
misc sku 3 | 16 | 126 | -110 |
misc sku 4 | 16 | 120 | -104 |
misc sku 5 | 7 | 97 | -90 |
misc sku 6 | 93 | 183 | -90 |
misc sku 7 | 11 | 86 | -75 |
misc sku 8 | 46 | 74 | -28 |
misc sku 9 | 30 | 53 | -23 |
misc sku 10 | 13 | 35 | -22 |
misc sku 11 | 11 | 33 | -22 |
misc sku 12 | 25 | 47 | -22 |
misc sku 13 | 0 | 20 | -20 |
misc sku 14 | 50 | 69 | -19 |
misc sku 15 | 9 | 28 | -19 |
misc sku 16 | 23 | 39 | -16 |
misc sku 17 | 30 | 45 | -15 |
misc sku 18 | 16 | 28 | -12 |
misc sku 19 | 19 | 31 | -12 |
misc sku 20 | 41 | 45 | -4 |
misc sku 21 | 5 | 6 | -1 |
misc sku 22 | 9 | 9 | 0 |
misc sku 23 | 2 | 2 | 0 |
misc sku 24 | 20 | 20 | 0 |
misc sku 25 | 27 | 27 | 0 |
misc sku 26 | 48 | 47 | 1 |
misc sku 27 | 2 | 0 | 2 |
misc sku 28 | 3 | 1 | 2 |
misc sku 29 | 4 | 2 | 2 |
misc sku 30 | 18 | 16 | 2 |
misc sku 31 | 11 | 8 | 3 |
misc sku 32 | 11 | 7 | 4 |
misc sku 33 | 5 | 1 | 4 |
misc sku 34 | 7 | 2 | 5 |
misc sku 35 | 5 | 0 | 5 |
misc sku 36 | 23 | 16 | 7 |
misc sku 37 | 38 | 31 | 7 |
misc sku 38 | 15 | 7 | 8 |
misc sku 39 | 14 | 6 | 8 |
misc sku 40 | 9 | 1 | 8 |
misc sku 41 | 14 | 6 | 8 |
misc sku 42 | 24 | 15 | 9 |
misc sku 43 | 11 | 2 | 9 |
misc sku 44 | 18 | 8 | 10 |
misc sku 45 | 22 | 12 | 10 |
misc sku 46 | 24 | 14 | 10 |
misc sku 47 | 30 | 19 | 11 |
misc sku 48 | 27 | 16 | 11 |
misc sku 49 | 26 | 8 | 18 |
misc sku 50 | 51 | 32 | 19 |
misc sku 51 | 30 | 10 | 20 |
misc sku 52 | 35 | 13 | 22 |
misc sku 53 | 32 | 9 | 23 |
misc sku 54 | 72 | 44 | 28 |
misc sku 55 | 48 | 18 | 30 |
misc sku 56 | 36 | 5 | 31 |
misc sku 57 | 37 | 4 | 33 |
misc sku 58 | 44 | 9 | 35 |
misc sku 59 | 38 | 2 | 36 |
misc sku 60 | 58 | 19 | 39 |
misc sku 61 | 49 | 2 | 47 |
1522 | 1986 | -464 | |
understocked skus total | -991 | ||
over stock skus total | 527 |