To accommodate the increased number of sellers using FBA in the early days of the global pandemic, Amazon FBA restock limits were imposed to help ensure that all sellers had space for their products. This may have impacted your business due to not being able to put stock into Amazon FBA and at the same time Amazon also paused shipping all but essential products for a period of time. Amazon had to effectively reset in order to cope with the onslaught of demand caused by the pandemic.
Amazon invested heavily to increase the square footage across their fulfilment and logistics network by 50% in 2020, and continue to open new fulfilment centres across the UK and the EU. They are looking for an additional 10,000 staff in the UK alone during 2021.
As soon as capacity in their fulfilment network stabilized, Amazon increased restock limits and reduced the Inventory Performance Index (IPI) threshold. Amazon say that they are glad that you responded by sending in a record amount of products in preparation for Prime Day.
Seller products now account for more than 60% of the inventory in Amazon UK and EU fulfilment centres. They now need to take steps to ensure that all sellers who use FBA have space for their products and that inventory can be received as quickly as possible, particularly in the lead-up to Prime Day. As a result, Amazon are making the following temporary changes to help provide customers with the widest possible selection and to maintain the best customer experience.
NB We are expecting Prime Day to take place a month early in June 2021, rather than the regular date at the start of Q3 in mid July.
Amazon FBA restock limits
As of the 16th of May 2021, Amazon FBA restock limits have been decreased so that your products can be received as quickly as possible. This change does not affect customer delivery. On average, sellers can restock 2 to 3 months of inventory in fulfilment centres. Amazon say that they have already taken similar steps for their own retail products – this will impact Amazon Vendors.
You can create more room for products by selling through your inventory, creating removal or disposal orders for products that are unlikely to sell, and canceling non-urgent open shipments. Note that restock limits are determined by multiple factors that include Prime Day deals, new selection, your past and future sales, current inventory levels, shipping times and available fulfilment centre capacity.
To review your restock limits and maximum shipment quantity, go to the Inventory Performance dashboard or your Shipping Queue. For more information, go to Restock limits by storage type: Frequently asked questions.
Amazon Inventory Performance Index
As of the 1st of July 2021, the IPI threshold for storage limits will change to 500 (previously 450).
If your IPI score is below 500 during the week of the 17th of May 2021, and the week of the 21st of June 2021, storage limits will apply for Q3 2021. Storage limits will continue to be evaluated on a quarterly cycle.
Sellers who maintain an IPI score of 500 or greater will continue to have unlimited storage for standard-size and oversize items. Monthly storage and long-term storage fees still apply, and all sellers regardless of IPI score are subject to restock limits.
You can track your IPI score on the Inventory Performance dashboard, where we also provide you with ways you can improve your performance.
“We appreciate your patience as we continue to make adjustments so that all sellers can benefit from FBA.”