Breaking News: Amazon Limiting Storage Capacity by 30-40%
Amazon is reducing storage capacity limits significantly. This will have the potential to limit sales on Amazon during the Q4 holiday season. If you do not have FBM (Fulfill By Merchant) capabilities, reach out to us immediately – we can help!
September 3, 2021 - By HINGE COMMERCE
This is a macro-level event happening across Amazon. We are hearing feedback from numerous sellers about storage capacity being reduced by Amazon up to 30-40%; many of these sellers have excellent IPI scores/operational metrics. We have also seen this within our own agency in which several of our larger Seller Central accounts are experiencing a significant reduction in their “oversized” storage limits. These changes may impact your Q4 business and underscore the importance of setting up a dual FBA/FBM shipping strategy as soon as possible.
Currently, we are also already seeing inbound shipping delays occur on LTL shipments (similar to last year), so even if your overall storage capacity isn’t reduced significantly we are anticipating receiving delays that would impact sales potential as well.
To mitigate these risks, we recommend setting up your account with FBM listings so you can ship directly to customers as a backup if inventory runs out on the FBA listings. Your FBM listings would share the same ASIN/content, so to the end-consumer, the product details will appear identical. The only thing that changes is where the products are shipping from and the delivery promise details.
If you do not have FBM capabilities, we can help! Hinge Global and DM Fulfillment provide a joint offering called Turnkey Commerce. Turnkey Commerce is an end-to-end eCommerce solution that spans from demand creation to wholesale multi-channel distribution and omnichannel drop-ship fulfillment. Click here to learn more and reach out to us immediately. You may be surprised that this option could actually save you money, while also growing your sales.