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  • Writer's pictureBrian Cummings

Managing Amazon Quantity Limits: Strategies for FBA Sellers in 2024

Updated: Apr 8

Amazon has introduced quantity limits or seller storage limits as part of its strategy to ensure the sale of products sent to their fulfillment centers. The Fulfillment by Amazon (FBA) service is designed for efficient product turnover rather than long-term storage, which is why they are referred to as fulfillment centers, not warehouses.

Amazon FBA quantity limits are put in place by Amazon to ensure that sellers do not exceed the storage capacity and can maintain efficient inventory management. Managing these limits can often be a tricky task for sellers, as they must balance their stock levels to match customer demand. These limits are determined by factors such as your product's sellability, historical sales data, and Amazon's available storage capacity. It's a delicate equilibrium that sellers must navigate to optimize their sales while avoiding excess storage fees or stockouts.

This blog will guide you through navigating Amazon’s rules on quantity limits or help you possibly increase your limit following certain tactics.

Stay tuned, as this could revolutionize your approach to inventory management on Amazon!


If you like this article, you'll love our article on Mastering Amazon FBA Prep Guidelines: A Detailed Guide!



What is Amazon’s Rule for Quantity Limits?

During the summer of 2020, Amazon imposed a strict limit of 200 units per ASIN, posing challenges for sellers looking to launch new products on the platform.


However, in April 2021, Amazon eliminated ASIN-level limits and introduced storage-type level restrictions. This meant that there was now a maximum allowable inventory storage space for each storage type, such as standard-size and oversize items.


Why Does Amazon Have Quantity Limits?

Amazon puts quantity limits on items for a few reasons. One big reason is to keep too much of one thing from filling up valuable space in the fulfillment center. Amazon believes that if a product will sell well, it does not need to have a lot of them stored at once. This belief helps make sure there is more room for other items.

Another reason is that Amazon wants sellers to better manage their stock levels and sales rates. So, these limits help both Amazon and sellers work together better.


How to find your restock limits

To find out your restock limits, you can go to the Shipping Queue in Seller Central and click on "Manage Inventory." It's also important to regularly review your inventory performance index (IPI) score, as maintaining a good score is crucial for maximizing your storage capacity on Amazon.


You might also want to understand MOQ: Minimum Order Quantities.


Managing Inventory Limits and IPI Score

To effectively manage inventory limits and improve your Inventory Performance Index (IPI) score on Amazon, it is important to understand the difference between account-based limits and ASIN-based limits.

Focus on addressing the causes of inventory limits, such as slow-selling products or excessive returns, by optimizing product listings and monitoring performance metrics. Implement strategies to improve your IPI score, including maintaining healthy inventory levels, reducing stock-outs and overstocks, and fulfilling orders promptly.

With a proactive approach to managing your inventory and IPI score, you can maximize sales within Amazon's quantity restrictions.


Account-based limits vs. ASIN-based limits

Amazon sellers need to understand the difference between account-based limits and ASIN-based limits as part of managing Amazon quantity limits effectively.



Account-based Limits

ASIN-based Limits

These limits apply to the total quantity of inventory that a seller can send to Amazon's FBA fulfillment centers. Amazon calculates these limits based on the seller's past sales performance and the available space in its fulfillment centers.

These limits are specific to each product or ASIN that a seller lists on Amazon. ASIN-based limits are determined based on the demand for that particular product and its sales velocity. These limits are in place to prevent overstocking of slow-selling products.

Sellers can find their account-based limits in their Shipping Queue in Seller Central by clicking on "Manage Inventory."

Amazon sellers can view their ASIN-based limits through the Restock Inventory page or the Restock report in Seller Central.

Account-based limits can decrease if sellers frequently send in more inventory than they sell, resulting in high storage costs and low IPI scores.

ASIN-based limits can increase if a product sells well. Amazon's new FBA capacity management system aims to provide sellers with greater ASIN-based capacity limits for faster-selling products.


Causes of inventory limits and how to address them

Inventory limits on Amazon can be caused by various factors, but there are ways to address them. Here are some common causes and solutions:

  • Slow-selling products: If you have products that aren't selling well, they can contribute to inventory limits. Consider using strategies like optimizing your product listings, improving product visibility through advertising, or offering promotions to boost sales.

  • Excess stock: Holding excessive inventory without sufficient demand can lead to inventory limits. Implement effective inventory management practices such as conducting regular audits, forecasting demand accurately, and adjusting your purchasing strategy accordingly.

  • High return rates: A high rate of returns can impact your inventory limits. Focus on reducing returns by improving product quality, providing accurate product descriptions and images, and addressing customer concerns promptly.

  • Product restrictions: Certain categories on Amazon may have stricter quantity limits or require special approval to sell in. Ensure that you comply with any category-specific requirements and restrictions to avoid limitations on your inventory.

  • Storage space availability: Limited storage capacity in Amazon's fulfillment centers can affect your restock limits. Optimize your storage space by removing slow-moving products or finding alternatives like using external warehouses or fulfillment services.

  • Poor Inventory Performance Index (IPI): A low IPI score can result in lower restock limits. Improve your IPI by focusing on factors like reducing excess inventory, maintaining healthy sales velocity, and keeping track of order defects and stock-out issues.

Improving inventory performance index (IPI)

To improve your inventory performance index (IPI), focus on the following strategies:

  • Optimize your product listings: Use relevant keywords, high-quality images, and accurate product descriptions to enhance your listings. This will help increase your product visibility and attract more customers.

  • Keep a balanced inventory: Maintain a healthy balance of inventory across your different ASINs to avoid stockouts or overstocking. Regularly monitor your sales data and adjust your restocking plans accordingly.

  • Manage excess inventory: If you have excess inventory that is not selling as expected, consider running promotions or offering discounts to move the products faster. It's important to free up space for more popular items.

  • Improve order accuracy: Minimize errors in order fulfillment by implementing efficient processes and quality control measures. This includes accurately picking, packing, and shipping orders to prevent customer complaints and returns.

  • Reduce stranded inventory: Stranded inventory refers to products that are not available for sale due to listing issues or incorrect categorization. Regularly monitor and resolve any listing issues promptly to ensure all your products are available for purchase.

  • Monitor supply chain efficiency: Work closely with suppliers, manufacturers, and shipping partners to ensure smooth operations and timely delivery of products. A well-managed supply chain can help improve your IPI score.

Don’t Be Limited by Quantity Limits

There is no doubt that having a higher seller storage limit on Amazon FBA can make a big difference for your business. It lets you keep more products ready to meet customer needs, seize opportunities, and improve your sales.

Maintaining a good IPI score and following best practices can help you increase your storage capacity and effectively manage your inventory limits. Knowing this and understanding the causes of inventory limits will give you more control over the system.

Remember to always stay informed and updated with any changes on the Amazon platform. These are crucial elements that will contribute to your success.


You might also be interested in understanding the essential requirements for shipping pallets to Amazon FBA.


Interested in discussing how we can improve your ecommerce fulfillment? Reach out to us here.


FAQs


What are the quantity limits for FBA sellers on Amazon?

The quantity limits for FBA sellers on Amazon vary depending on the product category, storage capacity, and performance metrics of the seller.


Is there a quantity limit on Amazon?

To ensure that a maximum number of customers can benefit from the selection and prices, sometimes quantities for certain items are limited. Customers are notified when such limits apply as they add quantities to their cart. During checkout, quantities are sometimes adjusted to reflect recent purchases of a quantity-limited item.


What is FBA limit on Amazon?

FBA capacity limits are monthly constraints that dictate the volume of inventory sellers can send and store with Amazon. The newly implemented capacity limits are designed to offer most sellers enhanced inventory capacity and greater control compared to the former FBA inventory storage and restock limits.


Why does Amazon limit items in cart?

Amazon enforces quantity limits on certain items in customers' carts to ensure that a wide range of customers can benefit from exceptional prices. This measure is particularly applied to products that are either priced very low or have a limited supply, thereby allowing more customers the chance to purchase these items.


How can I manage and optimize my inventory to stay within Amazon's quantity limits?

To manage your inventory and stay within Amazon's quantity limits, you can regularly monitor your sales velocity, adjust your replenishment strategies, plan promotions or discounts to boost sales, and consider using alternative fulfillment methods like Merchant Fulfilled Network (MFN) if necessary.


Are there any consequences for exceeding Amazon's designated quantity limits?

Exceeding Amazon's designated quantity limits may result in storage restrictions or additional fees imposed by Amazon. It is important to closely monitor your inventory levels and adhere to their guidelines to avoid any penalties or disruptions in selling on their platform.


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