Amazon is getting an early jump on planning for its Q4 holiday demand. With Prime Day anticipated to take place in October, the end of the year will be even busier than normal, effectively creating a 3 month holiday event. To prepare for this shopping season, Amazon has announced new storage limits for merchants. With this change in strategy, Tana team members have been partnering with our clients to prepare them for updated guidelines and storage changes for this year’s highly anticipated shopping season.
Amazon mentioned that it’s preparing early this year to meet the increased customer demand expected with the COVID-19 pandemic. In a communication to sellers, it called out changes that were made to its own retail ordering to accommodate more products for its brand and retail merchants. Included in these changes were new guidelines and storage changes that will be implemented soon. Tana’s account managers have started to plan ahead with our clients to avoid potential pitfalls in the upcoming months. Here are a few callouts from the team to help our clients prepare:
- Free Removals — Storage and removal fees have always been a large factor when making decisions related to FBA slow-moving inventory. Now for a limited time, Amazon has waived fees for any removal order submitted to their fulfillment centers immediately. This will allow sellers to improve their Inventory Performance Index (IPI) metrics without fees or penalty to minimize risk of storage limits. The recommendation from the team is for all sellers to take advantage of this period ASAP, since Amazon has not revealed when the promotional period will end.
- Unit Per ASIN Limits — During the holiday shopping season, Amazon will also place limits on the number of units available to be stored FBA during the high-demand selling period. Sellers will only be able to send enough inventory to cover 3 months of sales demand. The recommendation from Tana account managers is to review your most up-to-date restock report to validate ASIN storage limits along with increasing Amazon Advertising spend in July–Sept to raise the rolling 3 month sales demand curve before Prime Day. Estimated FBA shipments for Prime Day need to be submitted by Sept 11th 2020.
While Amazon has mostly recovered from the early issues back in March/April related to the start of the pandemic, it’s no surprise that they are anticipating and planning ahead with all the visibility of the new Prime Day target to make sure there will be a successful 3 months of holiday sales. The Tana team hopes is that with the extra guidelines, it will help force sellers to plan ahead early with inventory, benefiting your business during the holiday shopping season.