- by eSellerHub
Managing Amazon fulfillment center storage space is a crucial aspect of any business. Applying inventory storage limits makes sure that the products are received and delivered to the customer swiftly. Storage limits set depends on the volume measured in cubic feet and for each type of storage. The present and potential storage threshold limits and usage can be viewed on the Storage Monitor display. With effect from August 16, 2020, the IPI threshold for storage limits will be made 500 from the earlier 400. This article covers the storage and limitations that apply to sell in the USA.
Criteria for Storage limits
Individual selling accounts – the set storage limit is ten cubic feet, which will remain the same. Storage limit increases will not affect individual selling accounts.
Professional selling accounts – may or may not possess storage limits, based on the following criteria:
- Sellers with an Inventory Performance Index (IPI) of 500 or more on any one of two score checkpoints will not be subjected to storage limits. It includes standard-size, oversize, apparel, and footwear items.
- New sellers who are active for below 26 weeks or sellers who lack sufficient sales data for IPI score generation will not get any storage limits during both of the two score check weeks.
- Professional accounts without storage limits will have 25 cubic feet minimum storage space for standard, over-size, apparel, or footwear sort types.
Professional account holders can track their IPI using the Inventory Performance Dashboard. The dashboard provides insights on optimizing your FBA business, plus it offers customized recommendations to develop your sales and decrease costs. Your IPI score is updated every week based on your on-going inventory management.
Factors for calculating Storage limits
Storage limits are calculated by using various factors, including:
- Sales volume (including your sales’ season times)
- Historical IPI scores
- Fulfillment center’s available capacity
Sellers with unswervingly higher IPI scores will get higher storage limits. While setting limits for an upcoming quarter, Amazon weighs your recent sales and seasonal sales volume from the previous year.
Types of Storage
Storage limits are applied for the following six storage types:
Insights on storage types allotted for your products and the measure of cubic feet they occupy can be viewed using the FBA Inventory Age page and the Inventory Age report.
If there is no storage type in your Storage Monitor, then you have zero limits for that storage type.
Exceeding your FBA storage limit
Under the Amazon FBA inventory software storage limits policy, creating a new shipment to Amazon will not be available for a storage type until the inventory level falls below the limit set for that storage type. Sending additional inventory may be refused at the Amazon fulfillment center, and Storage overage fees will be charged.
The amount of inventory can be reduced in Amazon fulfillment center by following steps,
- Sell more from the inventory
- returning inventory by placing a removal order
- disposal of inventory by creating a disposal order.
Tracking ASIN limits
Storage limits for specific ASINs. It can be tracked from your seller account in the downloadable Inventory Health report under asin-limit the header.
Knowing these changes and updations can drastically improve your business strategy and take necessary operable measures. Using Amazon inventory management software can restore any backlashes in your inventory management and make it healthier. eSellerhub’s Amazon inventory management software performs harmoniously with the upcoming upgrades in Amazon fulfillment. Reach to us to know more.