New FBA Capacity Limit from Amazon
Dear Seller,
We hope this newsletter finds you well. As an Amazon seller, you may have heard about recent changes to Amazon's FBA inventory limits. To help you stay on top of these changes and continue to grow your sales, we wanted to share some important information and tips with you.
As you may know, Amazon has introduced a monthly metric called the FBA capacity limit, which determines the amount of inventory that can be stored at FBA centers. This limit takes into account a variety of factors, including your Inventory Performance Index (IPI) score, sales forecasts, shipment lead time, warehouse capacity, historical sales volume, and more.
To ensure that you are efficiently managing your inventory and avoiding storage fees, overstocking, and stock removal costs, it is important to monitor your IPI score and aim to maintain it within the acceptable range set by Amazon. You should also use sales forecasts to plan your restocks, take into account the shipment lead time and available warehouse capacity, and consider any scheduled deals and promotions that may impact demand.
Additionally, we recommend using the following formula to calculate your stock levels:
Stock = (Average monthly sales * Lead time in months) + Safety stock.
This formula takes into account the average monthly sales, lead time, and a safety cushion to ensure that you always have enough inventory on hand to meet customer demand.
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With the new capacity management system, there are several improvements that you should be aware of:
We hope this information is helpful and that you find these tips useful. If you have any questions or would like to learn more about how uniQin.ai can help you streamline your Amazon sales and increase your success, please don't hesitate to get in touch.
Best regards,