Selling on Amazon comes with its own set of challenges. One such challenge that sellers often need help with is dealing with stranded inventory. Stranded inventory refers to products stored in Amazon’s fulfilment centres that, for various reasons, are not available for sale.
This situation can lead to increased storage costs, missed sales opportunities, and potential negative impacts on a seller’s account health. Understanding how to fix stranded inventory is crucial for maintaining a seamless and profitable selling experience on Amazon.
In this guide, we’ll explore what Amazon stranded inventory is, its reasons, and most importantly, how to fix it.
Understanding Amazon Stranded Inventory
FBA stranded inventory happens when products stored in Amazon’s warehouses don’t have a live listing for customers to buy. Despite their inactivity, Amazon continues to impose monthly storage fees on sellers for these stranded items. The failure to consistently monitor and address stranded inventory issues can result in additional financial burdens, encompassing monthly storage fees, FBA long-term storage fees, and overage fees.
The ramifications extend to a seller’s Inventory Performance Index (IPI), a crucial metric employed by Amazon to evaluate inventory management efficiency. Maintaining a favourable IPI score is vital for sellers. However, the presence of stranded inventory negatively influences this score. Particularly noteworthy is the recent change implemented by Amazon, effective since January 1, 2022, where an IPI score falling below 400 leads to restrictions on storage space allocation in FBA warehouses.
This emphasizes the critical need for proactive inventory management practices. Amazon sellers must actively address stranded inventory to avoid financial repercussions, safeguard their IPI scores, and ensure continued access to optimal storage space within Amazon’s fulfilment network.
Common Causes of FBA Stranded Inventory
Amazon Listing Mistakes
When a live ASIN is separated from an inventory, there may be trouble in the Amazon market. This happens because of listing mistakes, usually when competitors remove an ad or do something wrong. Dealing with this problem is as easy as relisting the item, setting up the link again, and ensuring potential buyers can see it without any issues.
Pricing Flaws
As the world of online shopping constantly evolves, price changes could lead to suspension of Amazon seller accounts. If your prices suddenly go up or down for no reason, Amazon protects the marketplace. Putting your products in a reasonable price range in the “Manage Inventory” section is one practical approach to keep them from being suspended.
Restricted ASIN
Someone may need to step in and fix any problems because Amazon’s tight rules limit certain ASINs. Often, it’s because of worries about quality and intellectual property. When you come across restricted ASINs, it is essential to contact Amazon Seller Support immediately. They can help you find, fix, and remove the limits, allowing your inventory to flow normally again.
Listings Pitfalls
Most of the time, items on Amazon are taken down because they don’t follow the platform’s rules. Less visibility can happen when product returns are outdated, information must be included or completed, or pictures must be present. It is vital to strictly follow the listing standards set by Amazon if you want to keep getting views and sales.
Problem With Closed Listings
If you remove or close a product ad after it’s sold out, inventory may get stuck. Amazon may have items in its warehouses, but customers can’t make payments. As part of preventative measures, current listings are kept up until inventory is restocked, which gives potential buyers peace of mind that their buying journey will go smoothly and without any problems.
Products Expiry
Expired goods are dangerous in two ways: they are taken off of active listings, which leaves them stranded on Amazon. By quickly taking out expired items from the fulfilment centre, the resolution reduces the effects of inventory sitting around and storage costs going up.
The Consequences of Amazon FBA Stranded Inventory
- Stranded inventory incurs ongoing storage fees, eroding profits over time and impacting the financial health of your Amazon business.
- Products not available for purchase mean potential customers can’t buy, leading to missed sales opportunities and a direct hit on revenue.
- Stranded items affect crucial seller performance metrics, potentially lowering your account’s Inventory Health, visibility, and competitiveness on the platform.
- Reduced visibility due to stranded inventory can decrease the Buy Box’s share, allowing competitors to gain prominence and potentially reducing your sales.
- Accumulation of stranded items may lead to exceeding Amazon’s storage limits, triggering restrictions on your ability to send more inventory and hindering business growth.
- Negative seller metrics resulting from stranded inventory can lead to account warnings, suspension, or loss of privileges, affecting your overall standing on the platform.
- Persistent stranded inventory can have a lasting impact on your sales trajectory, requiring time and effort to recover lost opportunities and regain customer trust.
- If stranded items remain unresolved, the costs associated with removal or disposal add an extra financial burden to your Amazon selling operation.
- Unavailable products may lead to customer dissatisfaction and negative reviews, potentially harming your brand’s reputation on the Amazon platform.
How to Fix FBA Stranded Inventory?
If you find yourself dealing with stranded inventory on your Amazon Seller Central account, there are practical steps you can take to resolve the issue promptly. Whether it involves reaching out to Amazon Seller Support or managing the removal of stranded items, here’s a step-by-step guide to help you fix this issue through the process.
Contact Amazon Seller Support
- Go to your Seller Central account and click on “Help” at the top of the page.
- Scroll down to the “Need more help?” section and click “Get Support.”
- Select “Selling on Amazon,” then “Fulfillment by Amazon,” followed by “Other FBA Issues,” and finally, “Stranded Inventory.”
- Enter your ASIN/FNSKU to identify the specific issue with your inventory.
- The page will provide information on the problem and potential solutions.
- If further assistance is needed, click “Need more help with this issue? Contact Us.”
Create Removal Order
- If you remove stranded inventory, click the “Create Removal Order” option in the Action field.
- A dropdown menu will appear, allowing you to select either disposal or return of the product.
- Be aware that removal order fees apply, regardless of the chosen option.
Relist Stranded Inventory
- Amazon has simplified the process of relisting stranded inventory.
- Navigate to the “Fix Stranded Inventory” page.
- Click on the “Edit automatic action settings” button.
- A popup will appear, enabling you to set the number of days (from 1 to 30) for Amazon to automatically relist your inventory.
By following these steps, you can address stranded inventory efficiently and resume smooth operations on the Amazon platform.
Tips to Avoid the Amazon Stranded Inventory Issues
Delay Listing Closure or Deletion
Refrain from immediately closing or deleting a listing after selling out. Lost inventory or customer returns without an active offer can result in stranded inventory. Allow time for all processes to complete smoothly.
Be Cautious with Bulk Upload Templates
When using bulk upload templates like Inventory Loader, exercise caution with the quantity column. If populated, listings may automatically switch from Fulfilled by Amazon to Fulfilled by Merchant, leading to stranded inventory.
Avoid Multiple Offers for the Same Product
Exercise care when creating or revising listings to avoid multiple offers for identical products. Confirm that the ASIN, SKU, and condition match the inventory in your records to prevent discrepancies leading to stranded inventory.
Provide Comprehensive Listing Information
Before sending a shipment, ensure that your listing contains all essential information. Include details such as brand, category, price, and condition to facilitate accurate processing and reduce the risk of stranding inventory.
Manage Your FBA Stranded Inventory With eMarspro
Managing FBA stranded inventory is crucial to maintaining a successful Amazon business, and eMarspro offers comprehensive solutions for sellers. Here’s how we assist you in efficiently handling your stranded inventory on Amazon:
Strategic Analysis
eMarspro thoroughly analyses your Amazon account to identify any instances of stranded inventory. This includes scrutinizing listings, checking for errors, and evaluating the reasons behind stranded items.
Proactive Monitoring
Utilizing advanced monitoring tools, eMarspro keeps a vigilant eye on your inventory. By promptly detecting potential issues, they ensure timely intervention to prevent stock from becoming stranded.
Listing Optimization
The eMarspro team works on optimizing your product listings to reduce the chances of errors or mismatches that could lead to stranded inventory. This includes refining product details, enhancing images, and ensuring accurate information.
Inventory Reinstatement
In the event of stranded inventory, eMarspro takes swift action to reinstate listings. This involves addressing the root cause of the issue, whether it’s a listing error, pricing discrepancy, or other factors contributing to the stranding.
Regular Reporting
eMarspro provides regular and comprehensive reports on your inventory’s status, including any stranding instances. This transparent approach keeps sellers informed about the health of their inventory.
Customized Strategies
Recognizing that each seller’s business is unique, eMarspro tailors strategies to address specific challenges and goals. The approach is personalized, whether avoiding common pitfalls or responding to special circumstances.
Expert Guidance
With an expert team of Amazon account managers, we offer guidance on best practices for inventory management.
At eMarspro, We streamline your Amazon inventory management, minimize the risk of stranded inventory, and focus on growing your businesses.
Contact us today or call us at +1-682-472-4939
