The document discusses changes to Amazon FBA restock limits that began in 2020 and became stricter in 2021, significantly impacting seller's ability to manage inventory and launch new products. It highlights strategies for sellers to adapt to these limits, such as using third-party logistics and focusing on best-selling items, and suggests utilizing Seller Fulfilled Prime as a potential solution. Additionally, it outlines operational changes in the delivery process and emphasizes the importance of monitoring limits regularly.

1. Handling Amazon
FBA Quantity Limits
in 2022
MARCH 2022

2. Restock Limit Changes
Introduction at SKU level in
2020
Limits changed to account level in H1
2021
Limits tightened in May 2021
IPI threshold increased to 500 (previously 450)
in Q3
Limits have been easing for some
since Q4 2021
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2
3
4
5

3. Impact of Changes
Growth constraints
• Limits have decreased by up to 2/3rds
• Unable to inbound sufficient weeks-of-cover
• Delays to new product launches
• Variance between countries
Increased supply chain complexity
• Unpredictability affects forecasting
• Delays in getting FBA delivery slots
Margin pressure
• Increased advertising expenses
• Removal orders hit margins
1
2
3

4. E-commerce growth in 2020
• Internet sales grew 46% in UK and 44% in US
• Amazon’s 2020 revenue was $386bn, of which
around $120bn was from Marketplace
• Independent businesses’ sales grew over 50%
YoY
Amazon capacity constraints
• Restock limits are determined by: past
sales, future sales, current inventory levels,
available fulfilment centre (warehouse)
capacity
Change of strategy for Amazon
• Only want ‘fast moving’ FBA products in
FCs
• Customer behaviour changed – no
longer the ‘everything store’ via FBA
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2
3
Why?

5. What are the
Solutions?
Managing new limits
• Use 3PLs
• Inbound smaller shipments (reduce weeks of
cover) more often
• Monitor limits at least weekly and act fast
• Focus on best sellers – tail selection on SFP
and FBM
Understanding how to increase limits
• Raise cases with Seller Support
• Create removal orders
• Increase run-rate through discounts, deals,
PPC
Seller Fulfilled Prime (SFP)
• Can also try FBM
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2
3

6. How can SFP help?
Restock limits don’t apply
• Don’t recommend using only SFP – use SFP
for tail selection
• Other FBA quirks also don’t apply – inbounding,
removal orders, items getting lost by Amazon
Prime solution (vs. FBM)
Easier to sell off-Amazon
• Keep all inventory in one place – more
control
• Easier pricing negotiation with carriers
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2
3

7. SFP Changes
Daily cut-off times
• Customer facing cut-off time moved from 1pm
to 3pm / seller facing cut-off moved from 2pm to
4pm
• Can do later cut-off times, if carrier will collect
from you
Mandatory weekend collections
• At least one weekly weekend collection
required
• Confirmation with carrier required
Other changes
• Carrier collection times
• Multi-warehouse functionality
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2
3
Why? Spee
d

8. THANK
YOU
CONTACT:
Nish Udayakumar
nish@olsamgroup.com