Simply as we have been warning retailers to plan ahead for Q4, Amazon despatched an e-mail about main modifications affecting FBA sellers.
The announcement was additionally shared on the vendor boards in a thread titled “FBA modifications as we put together for a profitable peak”. And it prompted fairly a response amongst sellers.
Right here’s why…
The three Newest FBA Modifications Defined
To begin with, Amazon listed a few of the efforts it’s making to deal with COVID-19 and assist sellers develop. It stated it’s investing over $30 billion in FBA, opening 33 new FCs within the USA, and hiring 175,000 workers.
However the focus of the e-mail shortly shifted onto FBA sellers and their new obligations:
- A brand new minimal IPI rating of 500.
- New FBA amount limits enforced on August 16.
- Free removing orders from July 14 onwards.
So, what does this imply for FBA sellers?
Is Amazon ditching quarterly IPI evaluations?
Can sellers nonetheless have limitless storage this This fall?
And what’s the deadline free of charge removing orders?
We’ll have a look at all of those points in flip.
Greater Minimal IPI Rating
In Might, the IPI threshold for Q3 was raised from 350 to 400.
This July, it soared to 500 and the analysis interval was introduced ahead by 5 weeks.
Anybody with a low IPI rating on July 13-19 and Aug. 10-16 ought to anticipate new storage limits all through the final 20 weeks of the yr (Aug. 16 – Dec. 31).
So, not solely did Amazon elevate the brink but additionally lengthen the inventory restrict enforcement interval and exchange quarterly evaluation weeks.
For This fall, the enforcement interval was prolonged from 13 weeks to 19 weeks. And the variety of weeks between the primary and the second IPI examine shrank from 5 to four weeks.
Affected sellers ought to have been notified of their IPI rating and inventory limits by now.
In case you’ve been notified, you could have lower than two weeks to get your IPI rating again ‘within the inexperienced’.
Please be aware: in case your rating is over 500 on both one of many analysis weeks (July 13-19 or Aug. 10-16), you could have limitless storage.