Proper Logistics Management in the New Amazon Reality

A few months ago, Amazon changed the rules of the game and began limiting the number of units that can be sent to FBA warehouses based on the specific sales velocity of each product and general account management.

If you ask me, it's a blessed step that only helps us manage our inventory and finances more effectively.

Prior to this restriction, sellers used to send merchandise to Amazon, sometimes enough to last them a whole year, just to save on shipping costs and the headache. Alternatively, they sent too small quantities, resulting in stockouts during certain periods.

Now, to operate correctly, we need to make some changes in our logistics management:

• We work with an intermediate warehouse that handles logistics for us.

• We order merchandise according to what Amazon allows us (to avoid high storage costs in the external warehouse).

Are you managing your intermediate warehouse wisely?

Here are some tips that will help you work more efficiently and smartly:

1. When opening a shipment in Amazon, compare the cost between collecting boxes and collecting pallets and choose the cheaper option.

2. Minimize the time between receiving merchandise in the intermediate warehouse and shipping it to FBA warehouses as much as possible.

3. Leave at least one box in the warehouse for external sales, sending samples to stores, influencers, etc.

4. Use the warehouse to receive damaged goods from Amazon for repair and resale.

Most importantly, maintain a comprehensive sales tracking report on an annual, quarterly, and monthly basis, ensuring that you are keeping up with the pace you've set to avoid running out of available inventory for sale on Amazon. This situation could limit the amount of inventory you can send to the warehouses.