Amazon Restricts Third-Party Warehouse Storage To Prep For Holiday Season
With the ongoing coronavirus pandemic continuing to complicate the company’s logistics, Amazon announced on Monday that it would be making changes to prepare for the coming holiday shopping season. In a letter sent to sellers, the company said that new restrictions will be placed on the number of goods that third-party sellers will be allowed to store in its warehouses.
“Given the unprecedented challenges the Covid-19 pandemic has placed on all of us, we are preparing early to deliver a great holiday season for our customers and selling partners -- building out capacity as quickly as we can so we can deliver products customers need and want directly to their doorsteps and help you continue to grow your business,” reads the note, which was first posted by CNET.
The limits are intended to prevent independent vendors from taking up valuable warehouse space with items that are not in high demand during the crucial holiday shopping season. With the spike in demand for online shopping during pandemic lockdowns, Amazon is preparing to use the space for top-selling items, like smart TVs and video game consoles.
The changes, which took effect immediately, are also geared towards helping sellers that utilize Fulfillment by Amazon by ensuring space is available for all of their products. The company estimates that all sellers should have enough space for three months of sales. Fees for removing products from warehouses are being waived as of July 14, giving sellers more ease with which to clear out inventory that is not selling.
“Our commitment to our selling partners has never been more steadfast and we are taking steps now to help ensure all sellers using Fulfillment by Amazon have space for their products,” the note said.
This change in logistics is also likely geared towards preparing the company for Prime Day. The annual day of deals has traditionally been held in July, but due to the troubles imposed by the global pandemic has likely been delayed to the fall.
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