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Mon Oct 24 2022 09:52:16

Reports that Amazon Has Slashed Storage Space for FBA Sellers

By: Ina Steiner

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Over the past few days, sellers are reporting that Amazon has significantly reduced FBA storage space available to them in its fulfillment centers. Reports have come in via Twitter and LinkedIn.

Today, a seller reported that his sales were trending up, but Amazon slashed storage space in both US and Canada by 30%.

Some sellers theorized it might be due to a labor shortage rather than lack of space in Amazon fulfillment centers.

Typically Amazon restricts how much inventory sellers can send to its fulfillment centers ahead of the holiday shopping season, known as restock limits. The reports that are coming in don't mention this as a factor, so it's unclear if the current restrictions are on top of the annual holiday storage limits or not.

Amazon doubled the capacity of its US fulfillment network since the start of the pandemic, it revealed in November 2021, but as we wrote in June, this year Amazon found itself with a new problem: excess capacity, with reports that Amazon was trying to sublease space in its fulfillment facilities.

Sellers use Amazon FBA in part to cope with the busy holiday shopping season. Worryingly, on the Amazon FBA seller discussion board, many threads were devoted to reports of Amazon having lost sellers' inbound inventory.

Update 10/26/2022: Sellers are also discussing this issue on the Amazon discussion boards. It appears that Amazon issued their annual holiday restock limits but has been issuing additional limits on top of that recently.



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Perminate Link for Reports that Amazon Has Slashed Storage Space for FBA Sellers   Reports that Amazon Has Slashed Storage Space for FBA Sellers

by: Whatever This user has validated their user name.

Wed Oct 26 06:02:47 2022

Rethinking the "Grand" plan boys? Going back to counting on those sellers to do the work they used to do for free for you? Gee imagine that

Perminate Link for Reports that Amazon Has Slashed Storage Space for FBA Sellers   Reports that Amazon Has Slashed Storage Space for FBA Sellers

by: Stone Cutter This user has validated their user name.

Wed Oct 26 17:54:13 2022

Amazon announced they plan to cutback on hiring for this holiday season as many retailers believe the consumer will spend less this holiday season.  

Pulling back on the fulfillment center makes sense to me.  

Perminate Link for Reports that Amazon Has Slashed Storage Space for FBA Sellers   Reports that Amazon Has Slashed Storage Space for FBA Sellers

by: Chicago48 This user has validated their user name.

Thu Oct 27 01:50:21 2022

As I read through tech reports, AMZ has stopped building warehouses.  Plus, it's having labor problems with unions and walk-outs.  I've said it time and again, AMZ needs to break up.  It needs to let Marketplace be separate from AWS from Prime.

Perminate Link for Reports that Amazon Has Slashed Storage Space for FBA Sellers   Reports that Amazon Has Slashed Storage Space for FBA Sellers

by: Rogue This user has validated their user name.

Thu Oct 27 05:35:16 2022

 Amazon needs that space for all the projected returns from their generous 🌲 Christmas rent/ return ⏰ time table  

Perminate Link for Reports that Amazon Has Slashed Storage Space for FBA Sellers   Reports that Amazon Has Slashed Storage Space for FBA Sellers

by: Chicago48 This user has validated their user name.

Thu Oct 27 05:56:57 2022

BTW, off topic, has anyone found a good Amazon seller barcode scanner besides the AMZ seller scanner?  Since I'm having problems with 2-step verification, I don't want to use the AMZ seller scanner anymore.

Perminate Link for Reports that Amazon Has Slashed Storage Space for FBA Sellers   Reports that Amazon Has Slashed Storage Space for FBA Sellers

by: Stone Cutter This user has validated their user name.

Fri Oct 28 02:45:43 2022

***Today, Amazon “warns” for Q4***

Amazon made a public announcement that Q4 earnings will not meet Wall Streets expectations;...stock price took a major blow today. They also announced they plan to close some distribution centers.

Tis the nature of today’s consumer which is dealing with inflation AND U.S. mid-term elections.  

Perminate Link for Reports that Amazon Has Slashed Storage Space for FBA Sellers   Reports that Amazon Has Slashed Storage Space for FBA Sellers

by: Stone Cutter This user has validated their user name.

Sun Oct 30 02:39:12 2022

“I've said it time and again, AMZ needs to break up.  It needs to let Marketplace be separate from AWS from Prime.”

Amazon’s money making business IS AWS. Profit margins for Amazon’s Marketplace are tiny. AWS keeps Amazon afloat which was the point of AWS in the first place as the e-commerce market became too competitive.  



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