Amazon started as online book store and has grown to be the worlds largest online retailer.
IPI storage-limit update to come in mid-December
If you thought that your IPI storage-limit and it’s corresponding connection to your restock limits had settled down, that’s not the case. Amazon have announced that they will be reviewing your IPI storage-limit again with guidance due in mid December after Black Friday and Cyber Monday.
In some ways this is good news as it indicates there will be no further changes before the all important Q4. However a mid-December IPI storage-limit adjustment does introduce some uncertainty as the year draws to a close – if you over estimate stock levels for Q4 and end up with too much inventory left in FBA you could be disadvantaged as we enter 2022.
“This Prime Day, small- and medium-size businesses saw record-breaking sales: more than $3.5 billion across 19 countries, nearly 60% more than last year. For the holiday shopping season, we are hiring over 145,000 seasonal employees worldwide to pick, pack, and ship your products. By January, our fulfilment centre storage capacity will have increased by nearly 1.4 million cubic meters globally for standard-size items.
In addition to these network improvements, we will continue managing inventory performance to ensure that all products have space available for the holidays. ASIN-quantity limits remain in effect, and we will continue to evaluate our capacity and make adjustments to allow for more of your products when possible.
While our immediate focus is to help you have a successful Black Friday and Cyber Monday, some of you have asked about Inventory Performance Index (IPI) volume-based storage limits. We continue to review customer demand and our supply chain in light of COVID-19, and we will update you with further guidance in mid-December.”
One might hope that after Q4 any change to your IPI storage-limit would be a relaxation rather than a less generous limit, but to ensure you’re up to date with how IPI scores and restock limits impact your ability to trade on Amazon, sign up to our webinar with FBA experts Olsam, which takes place on the 29th of July at 2pm.