Amazon's Changes to FBA for Holiday Preparation

As Amazon prepares for holiday in an unprecedented year due to COVID-19, they have announced FBA changes to build out capacity and better support a successful peak season. 

Beginning August 16, Amazon will be restricting warehouse space for ASINs with an Inventory Performance Index (IPI) threshold below 500. Sellers have an opportunity to affect their IPI by reducing excess and stranded inventory and to help, Amazon is offering FBA Sellers a free removals promotion for a limited time, waiving fees for any removal order submitted for inventory in Amazon fulfillment centers. Additionally, Amazon will be introducing ASIN-level quantity limits on FBA products.

Please work with your Global Overview team to manage the necessary inventory changes.

The below notice outlines the impacted changes Amazon is making with the full announcement available in Seller Central.

Inventory Performance Index threshold change

We are working to manage inventory performance to ensure all products have space available during peak. To enable this, we are changing the IPI minimum threshold requirement to 500. Sellers below 500 will be subject to limits effective August 16, 2020 through the end of the year.

The majority of sellers will not be impacted by this change. Most sellers with IPI scores below 500 will have more storage space than last year.

You can improve your IPI by following guidance on improving sell through or reducing your excess and stranded inventory in the Inventory Performance Dashboard 862.

Quantity limits

To maximize selection for customers during peak, we are introducing ASIN-level quantity limits on products in FBA. Most products will have enough space available for over three months of sales.

You can view quantity limits for your products on the Restock Inventory 444 page and the Restock report 101. We will continually review this and, when possible, make adjustments to allow for more of your products.

Free removals promotion

To help you avoid storage fees for products that have not been selling and create room for more productive inventory, we are offering a free removal fee promotion for a limited time. We will waive your fees for any removal order submitted for inventory in our fulfillment centers beginning July 14, 2020.

To create a removal order, please visit Inventory Age 129 and choose Create removal order from the menu next to any FBA item in your inventory.

For further guidance, you can review frequently asked questions on this Help page in Seller Central.