Are Amazon FBA restrictions killing new product launches?

Amazon FBA restrictions have always been a headache for many sellers. From the initial ASIN restrictions, to the subsequent storage capacity restrictions, to this year's maximum shipping quantity restrictions, all of these show that Amazon's storage space is not unlimited.

However, even with these restrictions, many sellers still achieved good results on Amazon, and some sellers were able to achieve 400-500 orders per day and tens of thousands of dollars in sales within 3 months. From this point of view, the restrictions of Amazon FBA have not stifled the launch of new products. From another perspective, it may be helpful to the launch of new products.

Just a few years ago, FBA was the ultimate fulfillment solution: open to everyone, pay-as-you-go, and infinitely scalable. Getting inventory into FBA is like getting data into the cloud. You just ship it to Amazon and don’t need to worry about what happens next. Everything is handled for you.

Is this honeymoon of unlimited storage really over? It turns out that warehouse space is not unlimited, and if Amazon doesn’t take action, it will be very detrimental to its business. There are already enough products on the Amazon platform, and they need to eliminate some non-premium products to make room for some good products. So Amazon introduced peak season storage fees, long-term storage fees, IPI-driven storage restrictions, ASIN level restrictions, and processing delays of several weeks. Of course, the epidemic has also had some impact on this.

After the elimination of non-quality products, new opportunities for new product launches have been created, both in terms of ranking and storage space. This year’s account suspension wave has caused many big sellers to lose many accounts overnight, which has freed up some positions for other sellers to some extent. However, how to grab these hot spots requires the sellers to show their skills.

It is not difficult to see from these policies introduced by Amazon that the boutique model may be more likely to enable sellers to gain a foothold on Amazon. Whether it is new sellers entering the market or old sellers launching new products, the requirements for the products themselves are getting higher and higher.

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