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How to Fix Amazon Seller Reserved Inventory?

Amazon-seller-reserved-inventory

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You may have heard about reserved listings on Amazon. It’s the practice of Amazon reserving items for its use and then selling them back to you at a higher price than what they originally cost. However, this can be a good thing if you are an FBA seller who wants to pull in more sales and make more money. But what happens if an item you wish to sell on Amazon is already reserved by someone else? How do you fix the Amazon seller reserved inventory issue? We will show you how!

What is a reserved inventory on Amazon?

Reserved inventory is a type of Amazon seller reserved listing where you can list your product, but it can only be sold to customers who have been pre-approved by Amazon. This feature aims to prevent overselling and ensure that you don’t sell out your products before they’re delivered.  

When creating a reserved listing, you must provide all the information necessary for Amazon to approve or reject the reservation request:

  • Your shipping address and contact details
  • A description of what makes up “reserved” inventory (i.e., how many units)
  • A unique identifier number

Does reserved inventory affect sales?

The straight answer to this question is yes. If you market something that is already sold out in the product description, you can use reserved inventory. This will allow your customers to purchase it within 24 hours of placing an order. However, if you need more stock and want to sell more products or increase your sales volume, this method may not be suitable because customers may have to wait longer than 24 hours before they get their orders fulfilled.

Why does Amazon reserve its FBA products?

Amazon reserves your product to keep the marketplace competitive and ensure that sellers do not overstock. It also helps to ensure that products are available for purchase by other buyers, and they can immediately buy them because of limited stock. So if you have been selling like wildfire, chances are high that you are. The product might have sold out quickly. Therefore Amazon needs to keep it. Elsewhere until someone wants to purchase it from them again. So, if you take the services of a reliable agency inventory management for Amazon sellers, you will enjoy the maximum profit. As they know to help clients professionally. Moreover, they always come up with solutions that cater to the clients perfectly. 

Amazon seller reserved inventory—How how long does it take before things may be bought?

The first two options (selling and shipping) are pretty easy to understand, but what about the third? What happens if your product gets stuck in reserve inventory? Let’s examine each of the three potential outcomes for your goods being added to the reserved inventory. Below are three scenarios:

  • Making a sale: When you sell something through your Amazon FBA business, Amazon stores it in reserve inventory until the customer’s payment has been processed. In that instance, things sold cannot be purchased on Amazon again.
  • Product in transit: It is safe to assume that if you sent Amazon your product inventory and the product is not accessible for the customary “next day delivery,” Amazon is likely shifting it from one fulfillment center to another. Transit between warehouses requires time and is susceptible to unforeseen events. Sometimes, transfers are transnational, which can take even longer than moving stock within a single country; transporting inventory via air is much faster than by water. Products were sent directly from our warehouse, so they could only be held back or on time before reaching their destination.

What methods can you use to expedite the restocking of your inventory?

There is a way to speed up restocking your Amazon seller inventory. Your Amazon seller account will notify you when there is some shortage of your product, and they will even give you some time frames. But by then, you might need more time to submit a restocking application. Therefore keeping an eye on your stock pays well.

How to fix reserved inventory on Amazon?

Now that we have covered how to start the process? Let’s discuss what to do once your inventory is reserved.

If you’ve just sold out of your products and are running low on stock again, you must keep a close watch on your inventory levels. Suppose this happens more than once in a row. In that case, it might be time for some changes to ensure that Amazon does not penalize or suspend your account for violating its policies on prohibited products (as mentioned earlier). You should also consider whether other options are available for getting additional supplies from another supplier before resorting back into “reserved” mode again—this will require some research but could save considerable money over time!

Fix reserved inventory on Amazon- a few quick tips!

Make the most of your storage space:

High utilization rates often signify that outstanding orders need more processing owing to storage capacity limitations. The item’s genuineness, size, payment issues, slow sellers, stranded things, or surplus items that aren’t selling, as well as your best-selling items, could all be contributing factors.

Amazon will only provide additional storage once your inventory levels are normal because it is not interested in doing so. Do you want to know how much storage you’ve utilized so far? If so, the following equation can be used to calculate it:

To figure out these numbers, take the following actions:

  1. Go to the Inventory Dashboard by navigating.
  2. Select “Inventory Performance” from the menu.
  3. Restock Limit can be chosen from the menu.

Make sure your inventory is checked in as quickly as possible:

You could sustain a severe financial loss if your product is not delivered to Amazon FBA warehouses on schedule. The time it takes for Amazon to receive, process, transfer, and stock FBA products for sale can range from one to seven days. In addition, the check-in procedure will take much longer than usual because of COVID delays and labor scarcity at the warehouses.

If customer orders are fulfilled within one to two business days, your conversion rate may improve, and you may lose sales due to page abandonment. Therefore, you must start using UPS Freight to reduce inventory holding periods. They can ship in goods anytime a gap emerges in the timetable due to their relationship with Amazon.

Amazon is compelled to contact UPS Freight during a lull in the schedule and ask them to provide any additional stock required to finish the purchase immediately. Additionally, because of the agreement between the two businesses, checking in your FBA goods is typically quicker.

Put in place a removal order

Additionally, if you need to swiftly free up space or have trouble selling your outdated products from Amazon seller reserved inventory, then you need to make space available quickly; think about employing removal orders.

You can store a better product since you free up valuable storage space by creating a removal order. However, due to product problems, likely, some items will only show up on a reserved inventory list.

The procedures are listed below to withdraw your inventory from FBA.

Click “Manage Inventory,” then from the drop-down menu, choose “Edit,” and finally, click “Create a Removal Order.”

On the “Removal Order Details” screen, click “Return to Address.” On the “Removal Order Details” page, enter the address where you wish your purchases to be delivered.

Manually generate a removal order ID or remove both fulfillable and unfulfillable items from the list.

Review and submission of the removal order must happen as soon as possible.

Make use of FBM to avoid Amazon FBA reserved

You can plan for stockouts by setting up a third-party fulfillment center, especially during peak sales. A backup warehouse ensures that your Amazon restocks limitations are maintained and that you can quickly switch from FBA to FBM. In addition, as part of the sales velocity taken into consideration when analyzing replenishment restrictions, FBM sales are included in Amazon’s algorithm for determining to resupply limits.

If FBA declines to accept your further shipments, you can keep them in your warehouse. Orders can then be shipped from there. This will guarantee that you will be able to continue selling or fulfilling if you experience issues obtaining inventory into FBA.

Delete any shipping plans that are no longer needed

Similar to how Amazon Reserved Inventory affects your utilization %, inbound shipment percentage likewise impacts you. If your utilization rate is higher than typical, you may have an odd number of unused shipping plans.

The rolling 90-day KPI for the inventory is the one that Amazon considers the most important. The average usage for the ensuing three months will include those undeliverable and open shipments, which will hurt your sell-through rate. The earlier you eliminate these inbound shipments, the better because Amazon probably considers them when figuring out your sales-through rate.

You cannot receive more stock if you have over your restocking cap. Although Amazon doesn’t now charge for overuse, you never know what they’ll do in the future. So you should remove any new shipments as soon as possible. If you cannot erase them, please get in touch with Seller Support, and they will be able to delete them manually for you.

How to stay on top of restocking? 

  • You need to choose the best possible shipping method for your inventory.
  • In moving your product in time, it is crucial not to forget the extra time needed – customs and import management.
  • Keep an eye on what time of the year you want to restock your inventory. Mundane days are better, and festivals are worse for shipping.

Reserved quantity in Amazon

Amazon Seller Reserved Inventory is a status that an Amazon seller can reserve. It is retained on the seller’s account; the only way to remove it is by contacting Amazon support.

Reserved Inventory is a status that an Amazon seller can reserve. It is retained on the seller’s account; the only way to remove it is by contacting Amazon support. The name suggests that this status has been reserved for another seller who requested it from Amazon’s support team.

Reserving this inventory is to avoid duplicate listings for products that are similar to each other but have different sellers. This could result in lower sales because customers could only quickly find what they want on Amazon, so if they go through multiple listings or try to buy from various sellers individually instead of choosing one or more sellers as their preferred vendors.

Why is my FBA product in reserve?

Inventory items are listed in the reserved state when they are unavailable to fulfill orders. The thing is not yet on the marketplace, and you can’t sell it.

  • The reason why an FBA product is listed as reserved may be different. 
  • The product itself was not available at the time when you placed your order.
  • There was a problem with your Amazon fulfilled quantity reserved listing (you needed to provide all the necessary information, etc.).
  • You must change some information on your listing (add pictures, change the description, etc.).

Conclusion

I hope you have a better understanding of how Amazon seller reserved inventory works now. It can’t be avoided entirely, but you can work to minimize its occurrence and the impact it might have on your business. When you run into issues, you can use plenty of strategies to mitigate these problems. By following the tips mentioned above, you can improve upon this. You can evade a lot of the bad situations if you are proactiveness and intelligent in how you manage your catalog. Additionally, if you take the help of professionals like Urtasker, you will not find the problem in your work. 

 

Picture of Zeeshan Riaz <br> <span class="designation">Chief Operating Officer</span>
Zeeshan Riaz
Chief Operating Officer

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

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