Amazon Extends Black Friday Seller Inventory Deadline

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Brief description of the dive:

Amazon has set an October 19 deadline for third-party seller inventory to reach its fulfillment centers to ensure fast Prime delivery amid heightened demand for Black Friday orders.
In a message to sellers last week, the e-commerce giant recommended that sellers ship Fulfillment by Amazon inventory to their facilities in August and September. This will ensure that sellers have enough products in stock for the peak holiday shipping season, according to Amazon.
“Our fulfillment center teams will be focusing on receiving inventory in September and October to ensure your products are placed in the correct fulfillment centers before the peak,” Amazon said. “In November and December, we will focus on processing customer orders, as this is our busiest time of year.”

Diving Insight:

The Oct. 19 deadline is a week earlier than the one Amazon set last year as the company looks to maintain a rapid pace of deliveries during the shortened holiday season. Amazon announced Tuesday that it is now delivering at its fastest speeds ever for Prime members, benefiting from a regional fulfillment model.

Sellers who miss the inventory pickup deadline may have difficulty finding space in Amazon’s fulfillment centers. The company said it will have limited pickup times in November and December as it focuses on providing fast delivery.

Amazon said sellers may also see lower inventory capacity limits in October and November. The company did not specify how much the capacity will change, but sellers will have enough space for an average of six months of inventory. Last year, Amazon offered higher capacity in October before it began reducing inventory limits.

Capacity limits vary by account, but sellers can request increases for a fee using Amazon Capacity Manager.

Sellers who exceed capacity limits during this peak season won’t have to worry about being charged an overage fee. Amazon said it was waiving the fee — which was based on the number of days a seller exceeded capacity limits — on July 1 to help sellers simplify operations and manage inventory more efficiently during the holiday shipping rush.