The storage capacity of some sellers does not fall but rises! Amazon’s new storage capacity algorithm is this logic?

Speaking of the sales in the past two days, a seller described it like this: Today’s orders are comparable to the performance of the US men’s football team!

However, compared with the sluggish order quantity, sellers are even more helpless to cut and cut the storage capacity. Faced with the difficulty of delivery and replenishment, everyone can only seem to stare. Is it true that I can only be willing to be pinched to death by Amazon? Some sellers seem to have found the logic of the new storage algorithm.

At the same time, Amazon is looking forward to launching a new logistics business, which makes people wonder: Is Amazon blatantly engaging in “killing pigs”?

01

In the second week when the storage capacity plummeted, what did the sellers experience?

Since Amazon’s large-scale reduction of storage capacity last week, sellers have been worried about opening the backstage every day, for fear that the few storage capacities will be cut by Amazon again! Different from the previous adjustment of storage capacity, this time Amazon basically drops it once a day…

Some sellers did not pay enough attention to this issue, leading to accounts that could still ship, but now they want to ship and cannot send them, regretting it.

“Now I don’t expect the storage capacity to increase. I am satisfied if I can owe Amazon inventory.” Facing the current storage capacity situation, a seller was unable to complain.

The major impact of the substantial reduction in storage capacity on sellers is twofold. One is that it severely restricts the pace of promoting new products, and the other is that it affects the replenishment of old products and faces a crisis of out-of-stock. However, even if you can replenish the shipment the day before, it may be cancelled by Amazon the next day. This is probably the most disgusting aspect of this Amazon storage adjustment.

For example, the following seller, who delivered the goods in compliant storage, was cancelled by Amazon.

According to the seller: Recently, Amazon’s storage capacity is limited, and old products need to be restocked, so many unsellable inventory positions have been cleared. The shipment did not exceed the storage capacity at all, but I never expected that the shipment was cancelled by Amazon on the third day of shipment. Now that the goods have been loaded and sent off, the interception and disassembly fees are required for re-creating the goods and re-labelling them. The total cost is higher than the value of the goods…

In order to make inventory, the sellers are really fighting! A seller complained to Kan Ge: In order to quickly free up Amazon’s inventory capacity, I was forced to clear the saleable products. To this end, I also created multiple channels to remove orders, which cost $1,000!

For sellers whose IPI scores are not high, the impact is even greater! Some sellers asked for help: The old store’s storage capacity originally still had 6000, so it was 1000 for me all at once! Why did Amazon’s storage capacity drop so badly that the store was almost scrapped. What do I do?

02

What is the real purpose of limiting storage capacity? Does Amazon blatantly engage in “killing pigs”?

Why did Amazon hold Curry so hard this time? Preparing for the Q4 peak season? According to this year’s membership day, Amazon has also reserved storage and capacity for PD more than a month in advance. And the Black Five Network began to limit Amazon’s storage capacity in advance at the end of November, and at the beginning of September? Obviously unreasonable.

In this regard, some sellers believe that: At present, everyone is reducing storage capacity, that is, Amazon FBA workers cannot handle so many goods at present. It will be restored after a while.

But is this really the case? We must know that Amazon, as a global high-tech giant, will implement a policy based on analysis based on past experience and relevant data, and will never promulgate a policy on its forehead.

In response to Amazon’s abnormal move, an industry veteran conducted an in-depth analysis of “Amazon’s substantial restrictions on storage capacity”: (The following content has been appropriately organized without changing the meaning of the original text)

Over the years, Amazon FBA sellers have become accustomed to only focusing on operations within the platform, ignoring the ability to cultivate warehousing, logistics and distribution. Therefore, most sellers are extremely uncomfortable under the FBA storage capacity policy. After years of verification and data analysis of various indicators, Amazon has found that sellers should no longer bear so much storage capacity, and instead adopt restrictions on warehousing. Imagine if Amazon keeps receiving goods from the new warehouse, it will be a bottomless pit. To put it bluntly, Amazon is passing a part of the logistics and warehousing costs to the seller, allowing the seller to put the goods in a third-party warehouse, and let the seller bear this part of the investment and risk. Perhaps this is Amazon’s wishful thinking.

After reading the above analysis, I wonder if all sellers agree. Brother Kan thinks that the above is the point. Due to the influx of newcomers into Amazon this year, FBA operation pressure has increased sharply, and manpower and warehouses can’t keep up with this growth rate. To put it bluntly, in the future, FBA only wants you to deliver the goods that are sold well on time and in quantity and does not want to help you store excess goods. Compared with the cost of building FBA warehouses and recruiting a large number of new employees, Amazon’s storage fees will not make money. What money.

It’s also a coincidence that at the same time that the sellers’ inventory is becoming popular, Amazon has launched a new logistics project-FBA satellite warehouse, which is the official overseas warehouse. The specific content is shown in the following figure:

At first glance, this FBA satellite warehouse has many benefits. Not only is the shipment not restricted by the FBA storage capacity, but it can also help the seller save storage costs. The most powerful function is that it can automatically replenish the goods when the seller’s FBA warehouse is out of stock. , As long as you have the goods in the satellite warehouse (including on the way to FBA), your products will be available for sale.

However, if you want to enjoy the above services, sellers must go to Amazon’s official AGL logistics! As soon as this satellite warehouse service was launched, it immediately aroused heated discussions in the seller circle. Some sellers said bluntly: The day before yesterday, I had just cut me more than a thousand coffers. Today, I will get a satellite warehouse for myself. Is this forcing me to go to AGL? Killing pigs is not so obvious, right?

03

Some sellers do not fall but rise! Amazon’s new storage capacity algorithm is this logic?

Just when the storage capacity of all the sellers became popular, in the past few days, individual sellers were pleasantly surprised to find that their storage capacity has actually increased! This is really envious of others.

In addition, many European sellers also said that the storage capacity has increased: my IPI score in the UK has exceeded 500, so it has increased. Some sellers found out that the new account gives 1,000 storage capacity, but when the sales rate rises, it can rise to 3,000.

Is it because the IPI score increases, the sales rate rises, and the storage capacity increases? not necessarily! Some sellers have found that their products with efficient and fast turnover have dropped from more than 8,300 to more than 5,000, which is really puzzling…

So what is the logic of Amazon’s new storage capacity algorithm? A seller consulted the account manager and got the following reply:

The new inventory algorithm now incorporates the entire store’s dynamic sales data, which means that sellers are forced to deal with some unmovable or slow inventory in the Fba inventory. Then it will also affect the storage capacity, leading to the failure of replenishment of hot-selling products. Therefore, after the data is updated, many old accounts have less capacity than new accounts.

In response to the above statement, the seller analyzed his own storage capacity: after an old account was updated last week, the storage capacity has dropped from more than 10,000 to only 3K. I thought it was a system update bug, but it hasn’t recovered after two weeks. However, some accounts with performances that are not as good as his have higher storage capacity. Compared with several other old accounts, it is found that the more unsalable inventory, the lower the total storage capacity. To this end, the seller put the next focus on cleaning up the remaining unsold inventory.

Write at the end

Although the logic of the new storage capacity algorithm above is just a statement and has not been officially confirmed, it is also of a certain reference. Sellers may wish to try it. Starting with the sales rate and clearing redundant inventory, there may be unexpected gains.

Based on the current industry conditions, many experts predict that Amazon’s position restriction will be a general trend in the future. Even if the epidemic situation in Europe and America stabilizes, FBA storage capacity restrictions will become normal. Therefore, under this trend, how to deploy and use overseas warehouses, how to scientifically manage inventory, and how to efficiently allocate goods will be the ability for sellers to think long-term and urgently need to improve in the future.

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