New Amazon Warehouse Storage Limitations Due to Covid-19

This week, Amazon announced new product shipment restrictions for third-party sellers utilizing their U.S. warehouse storage space. The recent surge in Amazon sales resulting from virus-inflicted lockdowns has resulted in supply chain problems, delivery delays and lack of sufficient storage space to meet the needs of all Fulfillment by Amazon (FBA) sellers. FBA sellers ship their products to Amazon’s warehouse to take advantage of brand affiliation, fast-delivery service, and access to the Amazon Prime audience.

Limiting product quantities in advance of the holiday demand increase will ensure all sellers have adequate space to meet their needs. Product quantity limits will vary by product. As an additional measure to free up storage space, Amazon is now waiving their inventory removal fees to encourage sellers with dead stock to remove their products from warehouses. Although delivery times have returned to normal levels, Amazon is taking these extra steps to alleviate additional supply chain stresses that could result from an increase in virus outbreaks.

Additional resources:

www.cnbc.com
www.supplychaindive.com
www.bigcommerce.com