On April 22, 2021 Amazon announced the discontinuous of their ASIN level restrictions and introduced two metrics to address their inventory levels at the FBA warehouses; restock limits and storage volume.
This dual approach ensures Amazon accounts for numerous use cases from their Amazon sellers. Let's dive into each metric to better understand them.
Amazon Restock Limits
When you think of the term restock, you immediately think of the same product. Such as; "I just sold out of this product, so I am going to restock it so I can sell more."
But restock to Amazon is a general term for sending in any of your products. They removed the ASIN-specific restrictions, so restock in this sense means any product you will be sending in.
This is a slight disappointment to retail arbitrage sellers as ASIN level restrictions did not affect them too much because their ASINs varied so much due to the nature of retail product sourcing.
RA sellers source and find stuff that sells, much different than OA and private label sellers who are working with less than 100 SKUs, maybe.
Restock limits are set per storage type, based on your past and forecasted sales, allowing you to allocate these limits across your ASINs.
Amazon Storage Volume
Amazon storage volume determines how much space you can take up in the FBA warehouses with your SKUs.
Amazon had to place this layer of control on top of the restock limits because the size of products varies greatly.
They do their best to allocate items to specific warehouses based on size; however, they had to impose limits on the cubic feet that each seller could be allotted with so much variation.
How are the limits calculated for Amazon sellers?
These inventory limits are calculated through a combination of past and forecasted sales, the health of your Amazon account, current storage type levels, and utilization.
Bottom line here is that whatever you send into FBA really needs to sell so increasing your turnover rate is important. Turn rate can be positively affected by increasing sales through a repricer, selling through their multi-channel fulfillment integrations and not sending in products that won't sell quickly.
How to check your Amazon restock limits and storage volume
Navigate to Inventory > Inventory Planning > Performance
Near the very bottom of the page you will need to expand the sections for each inventory limit to see your maximum limits.