Forecast inventory 3 months in advance!These Amazon sites make good use of new storage tools, and peak season stocking is no longer stuck

Australian site seller
Hot sales are just starting to rise, but they are stuck in storage during the peak season, so I'm in a hurry!

Seller in Brazil
The goods have been floating in the sea for a month, and the storage capacity is gone, and it was a waste of effort to cry without tears!

Mexico Station Seller
If you can know storage limits in advance, you'll be able to step on many fewer pitfalls.

Good news!
Starting August 20, Amazon's Australia/Brazil/Mexico station will launch a logistics storage capacity manager to help you forecast storage capacity 3 months in advance. The storage capacity will officially take effect on October 1, making the pace of preparation more controllable.

So how exactly can Amazon Logistics Storage Capacity Manager help seller friends manage inventory?Hurry up and find out!

Amazon Logistics Storage Capacity Manager. Simply put, Amazon will give sellers an inventory limit every month to help manage storage capacity.

This amount is calculated based on a combination of four dimensions:
● IPI Inventory Performance Index: reflects how well sellers have previously managed their inventory (rated by Amazon);
● Sales forecast: estimate how many products will be sold in the future;
● Delivery time: How long does it take to ship to the Amazon warehouse;
● Actual warehouse capacity: The space that an Amazon fulfillment center can actually accommodate.

If your inventory exceeds this limit, you won't be able to send new products into the warehouse; as long as you don't exceed the limit, shipping will be smooth, and there's no need to worry about it.

In the fourth week of every month, Amazon recalculates the seller's storage quota to take into account your recent sales performance, inventory turnover, etc. As a result, sellers can know the inventory limit for the next month in advance, making it easy to arrange the pace of purchase and delivery in a reasonable manner, making goods entering and leaving the warehouse smoother, and avoiding the “want to ship but no quota” situation.

The good news is that Amazon will announce storage limits for the next three months at the same time every time:
● The amount for the next month is determined and can be planned directly according to this;
● The next two months are estimates to help you get a general direction ahead of time.
As a result, sellers can arrange purchase plans early. Even when they need to do promotions and cope with peak seasons, they can prepare goods in advance. There is no need to be busy temporarily, and the pace of preparation is more relaxed.

Amazon's storage capacity for sellers will closely fit the actual business scenario:
Combine your inventory management level (IPI score), historical sales volume, seasonal peak season trends, future sales forecasts, new product launches, planned promotions, delivery time, and actual warehouse capacity to provide suitable storage space.

Regarding the calculation of storage space, Amazon uses a two-pronged approach. The storage capacity is mainly calculated by volume (more in line with the actual space occupied), which can avoid two problems:
● Problem 1: “Small quantity and large volume” products fill the space and cause overstorage;
● Problem 2: “Large quantities and small” products are a waste of space.
At the same time, the system will also display the number of products, telling the seller how many items are currently being used and how many items can still be placed, taking into account everyone's habit of preparing goods according to the number of items, making planning easier.

A table summarizes the comparison before and after to give you a better idea of where the advantages lie!

● Only sellers using Fulfilment by Amazon (FBA) (goods are delivered to Amazon fulfillment centers), and the tool can be used through Seller Central.

New sellers or no initial inventory limits*: Amazon will help establish sales records and then adjust as business grows;
*It is recommended to communicate with the account manager and confirm details
Existing sellers: Storage capacity is distributed based on IPI score, sales volume, transit time, and operation center capacity.Points to remember:

Amazon storage types include: standard sizes, oversized items, clothing, footwear, and oversized. Amazon automatically categorizes products based on weight and size, and sellers cannot adjust them. To check the storage type and volume of the product, visit the “Amazon Logistics Inventory” page.

Note: Flammables and aerosol storage limit adjustments are handled separately from other storage types. Copy the link below to your browser to learn more about the “Amazon Logistics Dangerous Goods Program”.
https://sellercentral.amazon.com/help/hub/reference/GZLZBQ7W6QZRKWWK

You can view capacity limits and capacity usage in the Capacity Monitor at the bottom of the Inventory Performance Dashboard, Shipment Processing Progress, and Send to Amazon (STA) pages.

No. The stocks assigned to the seller for each storage type are not interchangeable.

To maximize storage capacity, Amazon suggests:
● Clean up “ghost” shipments: Shipments that have already been created count towards the seller's total capacity usage, so if you no longer plan on entering these shipments, close them in Send to Amazon (STA).
● Let your inventory “move”: Inventory isn't for lying down; it's for selling!The faster it sells, the more space it has. Amazon has summarized the “four-step method”: to help you strengthen inventory turnover in the four stages of expanding regions, promoting sales, moving products, and clearing surpluses.
● Follow restocking recommendations: Amazon provides restocking recommendations on the Replenish Inventory page, recommending that you send no more than the recommended amount of inventory.