Amazon has over 75 fulfillment centers in North America alone, with the largest covering 1,264,200 feet. Even that isn’t enough space to store and send enough products to satisfy its 300 million active users.
Quantity limits were instated to limit the amount of unsold inventory sitting on the shelves. They were originally based on each seller’s ASIN, but new limits came out this year and changed the game.
Read our guide to learn how ASIN-level quantity limits have changed and how they could affect your business.
How Do Quantity Limits Work?
There are a plethora of Amazon rules that sellers need to follow, but quantity limits are one of the most important. They limit how much of your inventory you can sell and store.
The goal of quantity limits is to push brick-and-mortar and online businesses to remove their unsold inventory.
What Are the New Limits?
Amazon’s quantity limits used to be at the ASIN level, meaning they applied to each ASIN or Amazon Standard Identification Number. The company recently announced a change to restock limits based on your account’s storage-type level.
Knowing the amount of product you can store and ship is essential. Check your quantity limits by going to sellers central, scrolling to the bottom, and clicking “restock limits.”
Check out this eCommerce blog for more information on what the new quantity limits could mean for your business.
What Are the Pros and Cons of The New Limits?
The new rules are partially based on the assumption that most Amazon sellers offer high quantities of a wide range of products.
If this is true for you, the quantity limit won’t have as much of a negative effect on you. If you can’t sell enough of one product, you can always focus on another with a lower quantity limit.
The new rules will have the greatest impact on Amazon sellers who ship high quantities of one item. Amazon will stop them from completing too many shipments of their niche product, a change that will greatly impact their business.
The entire eCommerce industry will be affected by these limits as most online sellers use Amazon warehouses to store and sell their products. A bit of extra effort can help you run a profitable business while staying within the limits.
How Can I Deal With The New Limits?
Amazon’s quantity limits apply to anyone who uses the platform, regardless of what type of business they have. Check your limits and analyze your needs to determine how and when to sell.
If you specialize in a specific item, wait until you sell enough units, then move inventory from your third-party logistics company to Amazon.
For all other sellers, there are 3 major methods to stay within quantity limits. Sell additional products, remove inventory from your local warehouse, and/or cancel open shipments.
Amazon’s rules don’t have to stop you from having a profitable business. All you have to do is understand them and plan your sales strategy accordingly.
Where Can I Get More eCommerce Tips?
Amazon enacted quantity limits for its sellers to limit the amount of unsold inventory taking up its admittedly massive amount of warehouse space. To provide a bit more freedom for sellers, ASIN-level limits have recently been replaced with storage-level limits.
If you’re an Amazon seller, always check your quantity limit before stocking or selling new products. The last thing any business wants is orders they can’t complete or inventory they can’t sell.
Read the rest of our content for more tips for eCommerce sellers.