WORLD NEWS

Amazon to reimpose limits on US sellers as coronavirus cases surge

Published on: 16th July 2020

The spike in coronavirus cases across the US has forced Amazon to reinstate limits for sellers amid fears of a second lockdown.

Amazon

Amazon has warned US sellers that it will be re-imposing restrictions on the quantity of goods they can sell via its Fulfilled By Amazon (FBA) service.

From August through to the end of the year, merchants who use Amazon’s FBA service, where the retail giant stores, fulfils and post goods from its automated warehouses, must adhere to quantity limits.

In March, Amazon banned all of its FBA customers from selling non-essential items as demand for online orders skyrocketed while coronavirus cases increased.

Despite Amazon largely returning to normal operations since then, the spike in coronavirus cases across the US has forced the online retailer to reinstate limits for sellers amid fears of a second lockdown could be imposed.

Amazon told sellers: “Even though it’s July, we’re preparing early for the holiday season to meet sustained increased demand, and have already reduced our own retail product ordering to accommodate more of your products and help you continue to see sales growth.”

Amazon said items with an “Inventory Performance Index threshold” of less than 500 will now be limited, ensuring the best selling items are stocked during peak times.

Wider quantity limits will be enforced on all products in FBA, while a free removals promotion will be offered to retailers for items which are not selling to “create more room for productive inventory”.

More than 3.5m US citizens have now contracted coronavirus, with more than 136,000 resulting in death. According to reports, numbers continue to spike throughout most of the US.

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