Amazon Fulfillment by Amazon (FBA) is a popular service that allows sellers to store their products in Amazon’s warehouses and have Amazon handle the shipping and customer service for those products. However, there are certain quantity limitations that sellers should be aware of before using this service.
Types of Quantity Limitations
First, it’s important to understand that there are two types of quantity limitations: per-item and per-shipment.
Per-item limitations refer to the maximum number of units of a single product that can be stored in an Amazon warehouse. These vary depending on the product category and size. For example, books have a per-item limit of 2,000 units, while electronics have a limit of 500 units. You can find the specific per-item limits for your products in the Amazon FBA Inventory Management dashboard.
Per-shipment limitations refer to the maximum number of units of all products that can be sent to an Amazon warehouse in a single shipment. These are usually much higher than per-item limits. For most product categories, the per-shipment limit is 150,000 units. However, there are a few exceptions to this rule. For example, books have a per-shipment limit of 40,000 units, while music and video have a limit of 20,000 units.
It’s important to note that these are just examples and may vary depending on the specific product and size and may be different for other countries or marketplaces. Also, for oversized items, special per-item limits and storage fees may apply. The best way to find the quantity limits for your specific products is to check the FBA Inventory Management dashboard in your Amazon seller account.
Also, Amazon may impose additional limitations during certain times of the year, such as the holiday season. During these periods, Amazon may temporarily reduce the per-item and per-shipment limits to ensure that their warehouses have enough space to store all the products they need to fulfill customer orders.
Bonus Tip - Another important thing to consider is the weight of the items you ship to Amazon.
If you have heavy items, you may need to send fewer units per shipment to stay within the weight
limits. Amazon has a weight limit of 150 lbs per box, so it's important to make sure that each
box you send is within that weight limit.
Inventory Performance Index (IPI)
The Inventory Performance Index (IPI) is a metric that measures how efficiently a seller manages their Fulfillment by Amazon (FBA) inventory. It is similar to a credit score for your inventory efficiency.
The IPI score is calculated using three factors:
- Inventory turnover: This measures how quickly a seller’s inventory is selling. A higher turnover rate indicates that a seller’s inventory is moving quickly and they are efficiently managing their stock levels.
- Perfect order rate: This measures the percentage of orders that are fulfilled on time and without errors. A high perfect order rate indicates that a seller effectively manages their inventory and correctly fulfills orders.
- Stockout rate: This measures the percentage of time that a product is out of stock. A low stockout rate indicates that a seller effectively manages their inventory and ensures that products are in stock when customers want to purchase them.
The IPI score is important because it helps Amazon determine how much inventory capacity a seller will need. If a seller has a high IPI score, it means that they are managing their inventory efficiently and Amazon can provide them with more capacity. On the other hand, if a seller has a low IPI score, it means they are not managing their inventory efficiently, so Amazon may provide less capacity.
Therefore, keeping track of the IPI score is important for sellers because it can affect the inventory capacity limits they are provided with by Amazon. If a seller wants to increase their capacity limit, it is important to improve their IPI score.
Latest Amazon Announcement about FBA Capacity
On January 17, 2023, Amazon announced a new FBA capacity management system that aims to give sellers more control, visibility, and predictability over their inventory capacity. This new system, which goes into effect on March 1, 2023, includes four new features.
- A single, month-long FBA capacity limit: Instead of having weekly restock limits, sellers will now have a single monthly limit to determine how much inventory they can send and store with Amazon. This limit will be announced in the third full week of each month.
- Estimated capacity limits: To help sellers plan in advance, Amazon will also provide estimated capacity limits for the next two months. These estimates may vary based on the sellers’ Inventory Performance Index (IPI) score. So, sellers with high IPI score will have access to more capacity, while sellers with low IPI score will have access to less capacity.
- The opportunity to request a higher limit: Sellers can request additional capacity by specifying a reservation fee. Requests will be granted objectively, starting with the highest reservation fee per cubic foot, and sellers will earn performance credits from sales to offset the reservation fee.
- FBA capacity limits in volume: Amazon will set capacity limits and measure sellers’ inventory usage in cubic feet instead of number of units, which better reflects the capacity usage in fulfillment centers and transportation vehicles.
These changes are meant to give sellers more control over their inventory and supply chain, and to make it easier for them to plan and manage their inventory.
In summary, Amazon FBA Quantity Limitations vary depending on the category and size of the items you want to sell. It’s important to be aware of these limitations and plan accordingly before using the service. Additionally, during certain times of the year, Amazon may impose additional limitations to ensure that there is enough space in their warehouses. And lastly, weight limits also play a role in how many items you can send to Amazon at once.