Amazon updates its replenishment policy, allowing sellers to replenish 2-3 months of goods!

Yien.com learned that Amazon released a new announcement this morning, updating the Amazon Logistics inventory limits and IPI thresholds.

Amazon UK relaxes restocking restrictions

Amazon UK announced that it has lowered inventory limits since May 16, 2021 to ensure that all sellers using FBA can receive products as soon as possible. This change will not affect customer delivery. On average, sellers can replenish stocks in fulfillment centers for 2 to 3 months . Amazon has also taken similar steps for its own retail products.

It has to be said that Amazon’s policies worry sellers, just like the summer weather; whether it is a joy or a sorrow is up to the sellers to experience for themselves.

Amazon said that sellers can create unloading or disposal orders for products that are unlikely to sell to make more room for products through inventory sales to cancel non-urgent outstanding shipments. In addition, Amazon also emphasized the factors affecting replenishment restrictions, such as promotion days, carriers , inventory levels, and shipping time, which means that sellers who want to enjoy this policy also need to meet the above conditions.

Previously, in order to adapt to the increase in the number of sellers using FBA in the early stages of the global COVID-19 pandemic, Amazon implemented inventory restrictions to ensure that all sellers had enough space to accommodate their products. However, the sudden restrictions caught sellers off guard, which really proves the saying that a good cook cannot cook without rice.

Data shows that seller products already occupy more than 60% of the inventory in UK and EU fulfillment centers . This temporary change is to ensure that sellers have enough space to accommodate their products before Prime Day, give customers the widest possible choice, and maintain the best customer experience.

The inventory performance index will be adjusted to 500

According to Amazon, once capacity in the fulfillment network stabilizes, inventory limits will be increased and Inventory Performance Index (IPI) thresholds will be lowered , so it seems that Amazon's policy has been effective.

In addition to relaxing replenishment restrictions, Amazon UK has also updated its Inventory Performance Index. The announcement shows that starting from July 1, 2021, the IPI storage limit threshold will be changed to 500 , from 450 previously .

That is, if a seller’s IPI index is below 500 during the week of May 17, 2021 and the week of June 21, 2021, storage limits will apply to Q3 2021, and storage limits will continue to be evaluated on a quarterly cycle.

It is worth noting that sellers who maintain an IPI score of 500 or higher will continue to be able to store standard-size and oversized items without restrictions. In addition, monthly storage and long-term storage fees still apply, and all sellers (regardless of IPI score) are subject to inventory limits.

Amazon's move seems to be a heavy blow to those sellers whose inventory performance is already poor. Some sellers even cried out: It's terrible!

Amazon

Restocking Policy

IPI