Key takeaways:
- Amazon stranded inventory is inventory that is physically present in Amazon's fulfillment centers but is not active for purchase on any listing.
- Common causes of stranded inventory include listing errors, pricing errors, product removals, and account suspensions.
- To fix stranded inventory, sellers should regularly check their inventory health, update or relist the stranded items, and work to prevent stranded inventory in the future.
When selling on Amazon's FBA (Fulfillment by Amazon) platform, there's a term that you need to be familiar with: stranded inventory. Understanding what it is, its causes, and how to resolve it can significantly impact your Amazon selling experience.
In this guide, we'll cover everything you need to know about Amazon stranded inventory.
What is Amazon Stranded Inventory?
Amazon stranded inventory refers to FBA inventory that is physically present in Amazon's fulfillment centers, but is not active for purchase on any listing. In other words, these are items that Amazon has stored on your behalf, but customers cannot buy them because there is no active listing associated with them.
Stranded inventory can be costly for sellers as Amazon charges storage fees for all items in their fulfillment centers, including stranded inventory. Additionally, stranded inventory can negatively impact your Inventory Performance Index (IPI) score.
How Does Stranded Inventory Happen?
Stranded inventory can occur for a variety of reasons:
- Listing errors: If there are errors in your product listing, Amazon may deactivate it. If inventory is in the fulfillment center without an active listing, it becomes stranded.
- Pricing errors: Amazon might deactivate a listing if the price violates their pricing policy.
- Product removals: If Amazon removes a product from its catalog for any reason, any inventory associated with that product in the fulfillment center becomes stranded.
- Account suspension: In the case of an account suspension, all FBA inventory becomes stranded as there are no active listings.
How to Fix Amazon Stranded Inventory
Fixing stranded inventory involves a few key steps:
Check Your Inventory Health
Regularly review your inventory health report in Seller Central. This report will show you any stranded inventory and the reason it's stranded.
Update or Relist Items
If the inventory is stranded due to a listing issue, fix the problem and relist the item. If the listing was deactivated due to a pricing issue, update your pricing to comply with Amazon's policies.
Contact Amazon Seller Support
If you're not sure why your inventory is stranded or how to fix it, you can reach out to Amazon Seller Support. They can provide guidance on resolving stranded inventory issues.
Preventing Stranded Inventory
To prevent stranded inventory, it's important to:
- Regularly review and update your product listings to ensure they're active and compliant with Amazon's policies.
- Monitor your pricing to ensure it doesn't violate Amazon's pricing policy.
- Keep your account in good standing to avoid account suspension.
- Regularly check your inventory health report to quickly identify and resolve any stranded inventory issues.
Conclusion
Amazon stranded inventory can be a significant challenge for FBA sellers. However, with a proper understanding of why it happens and how to prevent it, you can minimize its occurrence and impact on your business.
For more guidance on managing your Amazon FBA business effectively, reach out to the experts at ePlaybooks.
