A Detailed Explanation of Amazon FBA Warehouse Restriction.
What is the warehouse restrictions?
Warehousing restrictions is the storage volume that the seller can store in the inventory of Amazon's logistics center, Amazon regularly automatically assess the warehouse restrictions monthly in order to determine whether the seller's warehouses need to be adjusted.
When calculating the seller's current stock levels, Amazon often considers the following factors: the seller's inventory at the Amazon Logistics Center; the goods amount will delivered to the inventory; and any removal requests that have been processed.
How do you know your warehousing is restricted?
If your warehousing is restricted, multiple locations in your seller's account, including your Shipping Queue shipping management page, a storage monitor appears as shown below:
(Hint: If you are not limited to warehousing restrictions, the warehouse monitor will not be displayed.)
In addition, the green, yellow and red bar indicators will remind you how far everyone is from their maximum warehouse restriction:
Three colors three states
Green: Your inventory level is below the restriction of 75%
Yellow: Your inventory level is between 75% and 95% of the restriction
Red: Your inventory level is above 90% of the restriction
When you reach the stock warehouse restriction, you will be notified in the seller's account and email address.
How to do when you exceed your warehouse restriction?
If you send more stock than the amount is allowed by the FBA warehousing restriction, additional stock may be rejected by the logistics center.
Here are three ways to reduce FBA inventory:
① Sell your current stock.
② Ask FBA to return some of your inventory to you by creating a removal order.
③ request the FBA to dispose of some of your inventory by creating a stock removal request.
When you do this, the monitor line will not be updated immediately, but will not be processed until the next day.
So how do we solve the restrictions?
1. contact customer service, increase the restrictions
Amazon examines storage restrictions every month. If you've been able to sell 8% or more of your inventory each week for the past 9 weeks, you are qualified for a rise in storage. Sellers can also contact Amazon's Seller
Support to ask for positions.
Note: Amazon makes decisions based on specific circumstances. Factors such as current inventory turnover and inventory type are also factors that influence the decision.
2. Predict the condition for raising the restrictions
Before raising the restriction, it is best to know the conditions for raising the restriction. The following is the answer of some of the conditions on ascending Amazon FBA warehouse from Amazon Merchants Manager :
The conditions of FBA ascended
1. The use time of FBA ≥ 6 weeks, at least more than 4 weeks;
2. The last 6 weeks sold out rate = weekly sales / weekly inventory volume(requirements are ≥ 8% per week.
3. WOC = week of coverage = current inventory level / average weekly sales over the past 4 weeks, the main indicator is how long your inventary can insist untill is exhausted.