Dive Brief:
- Amazon set an Oct. 19 deadline for third-party sellers' inventory to reach its fulfillment centers to ensure Prime delivery speeds for the Black Friday ordering rush.
- In a message to sellers last week, the e-commerce giant recommended sellers send Fulfillment by Amazon inventory to its facilities in August and September. This will allow sellers to have enough products in stock for the peak holiday shipping season, according to Amazon.
- "Our fulfillment center teams will be focused on receiving inventory in September and October to ensure your products are placed in the right fulfillment centers ahead of peak," Amazon said. "In November and December, we’ll shift our focus to processing customer orders as this is our busiest time of year."
Dive Insight:
The Oct. 19 deadline is a week earlier than the one Amazon set last year, as the company looks to maintain fast delivery speeds during a condensed holiday season. Amazon announced Tuesday that it is currently delivering at its fastest speeds ever for Prime members as it reaps the benefits of a regionalized fulfillment model.
Sellers who miss the inventory receiving deadline may have tough luck finding space at Amazon's fulfillment centers. The company said it will have limited slots to accept shipments during November and December as it shifts its focus to ensuring fast delivery.
Amazon said sellers may encounter lower inventory capacity limits in October and November as well. The company didn't specify how much capacity would change, but sellers will have enough room for six months of inventory on average. Last year, Amazon offered higher capacity in October before it began reducing storage limits.
Capacity limits vary by account, but sellers can use Amazon's Capacity Manager tool to request an increase for a fee.
Sellers who exceed capacity limits this peak season won't have to worry about an inventory storage overage fee. Amazon said it eliminated the fee — which was based on how many days a seller exceeded capacity limits — on July 1 to help sellers simplify operations and manage inventory more efficiently during the holiday shipping rush.
