Capacity Limits Cut Again
Just looked at our capacity limits today and saw they were cut by 40-50% again! I am not quite sure what the reasoning is here for Amazon to continuously cut storage limits. I keep reading that they want storage to be for about 90 days on sales. However, with our current limits it gives us maybe 30-40 days of inventory available.
Are other sellers seeing the same cuts across the board?
12 replies
Seller_YYgXzU96Av3K9
Same here, cut by 60% in July vs May - insane and unjustified vs constant sales volume - something is going on, but I don't know what
It would be great if some Mods could enlighten us?
Is this just Amazon tryign to get paid more for standard storage volume?
Seller_3ZpotOxA5UxYk
We also had a 50% cut for June-August. No June shipments are possible without requesting an increase. It's just ridiculous, not sure the reason behind it but I guess they don't expect us to ship more for prime day and the holiday season.
Seller_IlwjJKqpD81nL
Oddly, they actually increased our storage limits for June.
I will say that we were SEVERLY cut in May, though, so this might be something of a correction, although it is still insulting.
We started off May by being about 33% OVER the capacity they gave us. We spent the entire month of May running sales and doing removal orders to get our volume down... and now in June our capacity is back to where we would have been fine and not needed to do much of anything. It's maddening.
Seller_LTxcY6uD0KbZr
Same just happened to us in our peak season and year 2 on Amazon as we are trying to grow our sales, cutting capacity down significantly is now going to cease our momentum to grow sales for the summer.
Seller_LaXfWb19u77C5
If your IPI hits a certain number, they start killing your capacity until you offload a lot of inventory and improve your IPI score again. Is your IPI in the red?
I complained about this on a forum post at some point - Amazon sends sellers an email that says, "Your capacity limits have been confirmed for the upcoming period. Capacity outlook for MONTH BEGINNING DATE to MONTH END DATE:"
If your IPI falls at any time before or during the month they "confirmed," they crush your capacity limit immediately. If Amazon sends an email with the words "your capacity limits have been confirmed," - I don't feel they should be able to reduce your inventory below the amount listed in their email. Sellers are using this data to plan and order merchandise from vendors. When the vendor is ready to ship, you can't suddenly say, "oh sorry, amazon unexpectedly changed my capacity, and now I can't buy anything."
I can understand the capacity changing for the NEXT month, a month not yet confirmed, but I don't think Amazon should be changing sellers' capacities mid-month when the storage has already been "confirmed." Who can make plans that way??
