Amazon Urges Sellers to Optimize Peak Storage with Capacity Manager and AWD
Strategies for Efficient Inventory Management During the Holiday Season
By ChannelMAX Staff Writer
July-2024#11
Sellers face a critical challenge during the holiday season in managing inventory effectively. Proper inventory management can mean the difference between capitalizing on high-demand periods and missing out on potential sales due to stockouts or excessive storage costs. Recognizing this crucial need, Amazon has stepped up to support its seller community. In preparation for the upcoming holiday season, Amazon encourages sellers to leverage two key tools for optimizing their storage and inventory management: Capacity Manager and Amazon Warehousing & Distribution (AWD).
Amazon says that the tools, when used individually or in combination, offer sellers a customized approach to handling inventory during the busiest time of the year.
Capacity Manager: A Tool for Short-Term Storage
Amazon's Capacity Manager provides sellers access to additional fulfilment centre storage for fast-moving products, typically those that sell within four weeks. This tool allows professional sellers to bid on extra storage capacity by specifying a reservation fee. Importantly, performance credits earned from sales generated using this additional capacity can offset up to 100% of the reservation fee, potentially making it a cost-effective solution for sellers experiencing high demand.
Capacity Manager operates on a monthly FBA capacity limit, replacing the previous weekly restock and quarterly storage volume limits. Amazon announces this limit for the upcoming month in the third week of each month, along with estimated capacity limits for the following two months, to aid in advanced planning. The tool measures capacity in cubic feet, providing a more accurate representation of the physical space occupied in fulfilment centres.
Also Read: Amazon Expands AWD Eligibility to Include Shoes, Offering New Opportunities for Sellers
Amazon Warehousing & Distribution: Long-Term Storage Solution
For inventory requiring more than four weeks of storage, Amazon recommends its Warehousing & Distribution (AWD) service. AWD offers a low-cost, pay-as-you-go pricing model for bulk storage and distribution. This service automatically replenishes products from AWD facilities to fulfilment centres, ensuring optimal inventory levels are maintained.
A key advantage of AWD is that inventory auto-replenished from this service doesn't count towards sellers' FBA capacity limits. Additionally, AWD offers multi-channel distribution capabilities, allowing sellers to use a single inventory pool for both Amazon and other sales channels. For a limited time, Amazon is offering up to a 25% discount off the base rate for AWD, which is applied automatically and reflected in the monthly fee report in Seller Central.
Promotional Offer and Upcoming Webinar
Amazon has announced that the AWD promotional discount will be available until September 30, 2024, subject to AWD Promotions Terms & Conditions. To provide sellers with more information on utilizing Capacity Manager for improved holiday planning, Amazon will host a webinar on July 23, 2024.
As the holiday season approaches, these tools offer Amazon sellers valuable options for managing their inventory efficiently. By understanding and leveraging Capacity Manager and AWD, sellers can potentially optimize their storage strategies, manage costs more effectively, and ensure they're well-prepared for the peak shopping period.
Also Read: Amazon Urges Sellers to Leverage AWD for Prime Day Success
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
By ChannelMAX Staff Writer
July-2024#11
Sellers face a critical challenge during the holiday season in managing inventory effectively. Proper inventory management can mean the difference between capitalizing on high-demand periods and missing out on potential sales due to stockouts or excessive storage costs. Recognizing this crucial need, Amazon has stepped up to support its seller community. In preparation for the upcoming holiday season, Amazon encourages sellers to leverage two key tools for optimizing their storage and inventory management: Capacity Manager and Amazon Warehousing & Distribution (AWD).
Amazon says that the tools, when used individually or in combination, offer sellers a customized approach to handling inventory during the busiest time of the year.
Capacity Manager: A Tool for Short-Term Storage
Amazon's Capacity Manager provides sellers access to additional fulfilment centre storage for fast-moving products, typically those that sell within four weeks. This tool allows professional sellers to bid on extra storage capacity by specifying a reservation fee. Importantly, performance credits earned from sales generated using this additional capacity can offset up to 100% of the reservation fee, potentially making it a cost-effective solution for sellers experiencing high demand.
Capacity Manager operates on a monthly FBA capacity limit, replacing the previous weekly restock and quarterly storage volume limits. Amazon announces this limit for the upcoming month in the third week of each month, along with estimated capacity limits for the following two months, to aid in advanced planning. The tool measures capacity in cubic feet, providing a more accurate representation of the physical space occupied in fulfilment centres.
Also Read: Amazon Expands AWD Eligibility to Include Shoes, Offering New Opportunities for Sellers
Amazon Warehousing & Distribution: Long-Term Storage Solution
For inventory requiring more than four weeks of storage, Amazon recommends its Warehousing & Distribution (AWD) service. AWD offers a low-cost, pay-as-you-go pricing model for bulk storage and distribution. This service automatically replenishes products from AWD facilities to fulfilment centres, ensuring optimal inventory levels are maintained.
A key advantage of AWD is that inventory auto-replenished from this service doesn't count towards sellers' FBA capacity limits. Additionally, AWD offers multi-channel distribution capabilities, allowing sellers to use a single inventory pool for both Amazon and other sales channels. For a limited time, Amazon is offering up to a 25% discount off the base rate for AWD, which is applied automatically and reflected in the monthly fee report in Seller Central.
Promotional Offer and Upcoming Webinar
Amazon has announced that the AWD promotional discount will be available until September 30, 2024, subject to AWD Promotions Terms & Conditions. To provide sellers with more information on utilizing Capacity Manager for improved holiday planning, Amazon will host a webinar on July 23, 2024.
As the holiday season approaches, these tools offer Amazon sellers valuable options for managing their inventory efficiently. By understanding and leveraging Capacity Manager and AWD, sellers can potentially optimize their storage strategies, manage costs more effectively, and ensure they're well-prepared for the peak shopping period.
Also Read: Amazon Urges Sellers to Leverage AWD for Prime Day Success
Follow us on Facebook, X and LinkedIn to get the latest news and updates related to online selling.
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.