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Fulfilment by Amazon (FBA) inventory management
Scientifically manage inventory levels and grasp the pace of operation
What is FBA inventory management?
FBA INVENTORY INTRODUCTION
Fulfilment by Amazon (FBA) inventory management is a key part of Fulfilment by Amazon. Once inventory is delivered to an Amazon fulfillment center, sellers can store products according to the standards provided by Amazon. Amazon Logistics inventory management is related to sellers' cost control, capital utilization efficiency, and goods flow rate, which affects seller revenue.
Currently, Amazon has operating centers in 14 countries and regions around the world, which can provide detailed and efficient support and services to sellers. Major sites also come with a variety of tools and services to help solve various cross-border logistics needs.
Key points of Amazon Logistics inventory management
FBA INVENTORY POINTS
The number of weeks of sustainable sales (WOC) is calculated based on the three main data points that make inventory replenishment decisions: sales velocity (average weekly sales), on-hand inventory (shippable quantity), and inventory being allocated by Amazon. Amazon recommends that you try to keep your sales week sustainable for at least 4-8 weeks; at the same time, you also need to check your sustainable sales weeks according to the different stages of sales.
Most sellers receive their first Inventory Performance Index (IPI) about 15 weeks after receiving their first item from Fulfilment by Amazon (FBA) to help understand inventory health and assist with FBA inventory management. At the same time, it provides sellers with inventory optimization recommendations based on information such as excess inventory, sell-out rate, Amazon inventory with no active sales information, and in-stock inventory.
The Inventory Performance Index (IPI) score directly affects the amount of FBA storage capacity a seller can use.
The Inventory Performance Index (IPI) score directly affects the amount of FBA storage capacity a seller can use.
New professional selling account
(Amazon Logistics has been active for less than 39 weeks)
(Amazon Logistics has been active for less than 39 weeks)
Not subject to Amazon Logistics storage capacity limits.
I already have a professional selling account
(Amazon Logistics has been active for more than 39 weeks)
(Amazon Logistics has been active for more than 39 weeks)
Storage capacity credits will be obtained based on their IPI score and sales performance. Sellers with consistently high IPI scores receive higher storage capacity credits, which are adjusted based on sales volume and available capacity.
Amazon Logistics Inventory Management Solution
FBA INVENTORY MANAGEMENT SOLUTIONS
Inventory management
Amazon Logistics Inventory dashboard (FBA Inventory)
Use the tools in your seller account to list products, create shipping plans, send in shipments, track and monitor your shipments, and remove inventory from Amazon fulfillment centers.
Storage Capacity Manager (Capacity Manager)
If sellers want more storage space for their products and are confident that this batch of products will be well received by buyers, they can improve sales performance during peak seasons by requesting additional storage space.
Replenishment plan
In order to help sellers quickly find solutions to inbound problems, Amazon has designed the “Inbound Problem Self-Check Diagnoser”: you only need to self-check 2 questions and quickly find the corresponding solutions!
Clearance tools
In terms of recycling value, inventory is divided into sellable and unsellable. Amazon has launched a variety of clearance tool combinations for the above inventory states to help sellers manage inventory scientifically.
Amazon Outlet Deals
For limited-time promotional offers on sellable inventory, event products will be placed on an exclusive display page to get lots of exposure, making it an ideal choice to quickly clear the backlog.
Amazon Logistics Rating and Resell Program (FBA Grade and Resell)
Unsellable inventory is rated and re-sold as a used product to recover part of the value of the product and avoid complete disposal of the inventory.
Amazon Logistics Bulk Clearance Program (FBA Liquidations)
A clean-up program for excess inventory helps sellers sell it to liquidators cooperating with Amazon, recover approximately 5%-20% of the product value, and reduce unnecessary storage and disposal fees.
Amazon Logistics inventory management fees
FBA INVENTORY FEE
For all products stored in Amazon fulfillment centers, Amazon charges a storage fee based on the seller's average daily volume usage, and product measurements are calculated based on the dimensions of the product that has been properly packaged and prepared for delivery to the buyer in accordance with Amazon's logistics program policies.
Amazon Logistics (FBA) provides a variety of warehousing services and billing methods, including storage fees and optional paid services. Sellers can choose various service combinations according to their own needs.
Storage Fee
This includes monthly inventory storage fees, long-term inventory storage fees, inventory storage overage fees (US sites only), etc.
Optional paid services
Sellers can choose optional paid services according to their needs, including inventory placement services, FBA repackaging services, and refurbishment services.
Seller success stories
SELLER STORY
Make the world fall in love with Chinese brands
We entrust professional work to more professional Amazon, which not only improved the customer's standardized experience, but also reduced the work of warehouse landing and inventory management.
Tan Tie
General Manager of Anzhi
More resources
MORE RESOURCES
Frequently asked questions
FAQ
What is the relationship between FBA and Fulfilment by Amazon (FBA) inventory management?
Amazon Logistics inventory management is part of Amazon Logistics (FBA). After the inventory is stored in the Amazon fulfillment center, the first step is to use the Amazon Logistics (FBA) service. After that, sellers can manage the inventory through the Amazon Logistics inventory management tool.
Do I need additional registration to use Amazon fulfillment centers to manage my inventory?
No, once the seller has successfully registered their seller account, they can choose to use the Fulfilment by Amazon (FBA) delivery method to send Amazon inventory to Amazon fulfillment centers. Please refer to the Amazon Seller Central help page “FBA Product Restrictions” before sending inventory to comply with FBA product prep requirements, safety requirements, and product restrictions.
After the inventory is stored in an Amazon fulfillment center, do sellers still need to be responsible for delivery and after-sales?
No, inventory sent to Amazon fulfillment centers will be shipped using Fulfilment by Amazon (FBA) by default, and Amazon will assist the seller with the next steps.
Can I use other shipping methods to ship my inventory in Amazon fulfillment centers?
No, inventory sent to Amazon fulfillment centers will be shipped using Fulfilment by Amazon (FBA) by default.
I'm a new FBA seller and don't currently have an Inventory Performance Index Score (IPI). How will this affect me?
Most sellers with professional selling accounts will have an Inventory Performance Index score, but some don't because Amazon doesn't currently have enough data to generate that score for these accounts. This can be the case for sellers who are new to FBA or have small quantities of FBA inventory.
After you first receive an IPI score, you won’t be subject to storage limits for two full storage-limit cycles.
You can check the date you received your first Inventory Performance Index score by clicking on the “Show Details” link below the Inventory Performance Score color bar. This will show your Historical Performance Metrics, and the date of your first Inventory Performance Index score will appear above the chart.
Most sellers will receive their first IPI score approximately 15 weeks after their first product is received by FBA.
Visit the Inventory Performance Dashboard for recommendations on managing your inventory.
After you first receive an IPI score, you won’t be subject to storage limits for two full storage-limit cycles.
You can check the date you received your first Inventory Performance Index score by clicking on the “Show Details” link below the Inventory Performance Score color bar. This will show your Historical Performance Metrics, and the date of your first Inventory Performance Index score will appear above the chart.
Most sellers will receive their first IPI score approximately 15 weeks after their first product is received by FBA.
Visit the Inventory Performance Dashboard for recommendations on managing your inventory.
Efficient inventory management to help return profits
Getting Started: New Seller Guide
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