As an Amazon FBA (Fulfillment by Amazon) seller, inventory management is crucial to maintaining a healthy business. One of the most frustrating issues that sellers encounter is stranded inventory—when products stored in Amazon’s fulfillment centers cannot be sold due to listing errors or account issues. Stranded inventory not only costs you sales but can also lead to increased storage fees, eating into your profitability.
In this comprehensive guide, we’ll explain what stranded inventory is, the most common causes, and provide step-by-step instructions on how to resolve it. We’ll also explore strategies to prevent it from happening in the future.
What is Stranded Inventory in Amazon FBA?
Stranded inventory occurs when products stored in Amazon’s fulfillment centers are not linked to an active listing and, as a result, are unavailable for purchase by customers. This situation leads to lost sales and potential increases in storage fees as your unsellable products take up space in Amazon’s warehouses.
According to Amazon, stranded inventory is classified as products that are physically present in the fulfillment center but are not connected to an active ASIN (Amazon Standard Identification Number) or listing.
Common Causes of Stranded Inventory
- Listing Errors: Inactive or deleted listings can cause your inventory to become stranded. This could be due to incorrect product details or listing violations that Amazon flags.
- ASIN Suppression: Amazon may suppress your product’s ASIN due to incorrect categorization, inaccurate product information, or compliance issues.
- Account Issues: If your account faces suspension or certain restrictions, it could result in your inventory becoming stranded.
- Pricing Errors: If your product price falls below Amazon’s minimum price threshold or exceeds the maximum, the listing may be suppressed, causing stranded inventory.
- Policy Violations: Products that violate Amazon’s policies, such as restricted categories or missing certifications, can lead to stranded inventory.
- Discontinued Listings: If a product listing is discontinued or closed, your inventory becomes stranded until it is relisted.
The Cost of Stranded Inventory
Stranded inventory can affect your Amazon FBA business in multiple ways:
- Lost Sales: With your products unavailable for purchase, you miss out on potential revenue.
- Increased Storage Fees: As products sit unsold in Amazon’s warehouses, you continue to incur monthly storage fees, which can increase during peak seasons like Q4 (October to December).
- Long-Term Storage Fees: If your inventory remains stranded for an extended period, it may also be subject to Amazon’s long-term storage fees, which are much higher than regular storage fees.
Understanding these costs highlights the importance of addressing stranded inventory issues quickly and efficiently.
How to Identify Stranded Inventory
Amazon provides tools within Seller Central to help you identify and resolve stranded inventory.
- Log in to Seller Central: Navigate to the Inventory tab.
- Access the Stranded Inventory Dashboard: Go to Inventory Planning > Fix Stranded Inventory. This dashboard provides a detailed list of your stranded inventory along with the reasons for each listing being inactive.
- Identify the Cause: Review the stranded inventory report to determine the reason why the inventory has become stranded. Amazon usually provides a specific error code or explanation for each item.
How to Resolve Stranded Inventory
Once you’ve identified the products that are stranded, follow these steps to resolve the issue:
1. Relist the Product
If the inventory is stranded due to an inactive listing, you can attempt to relist the product. Follow these steps:
- Go to the Stranded Inventory page.
- Click on the “Fix” button next to the affected product.
- You will be redirected to the page where you can update the listing and reactivate it.
- Ensure that all required product information, including pricing, is correct.
2. Correct Listing Errors
If Amazon has flagged your listing for errors, such as missing product details or inaccurate descriptions, correct the listing as needed:
- Review the error message provided by Amazon.
- Update the necessary product details, images, or compliance documentation.
- Once corrected, submit the listing for reapproval by Amazon.
3. Address ASIN Suppression Issues
Amazon may suppress a listing due to policy violations, missing information, or incorrect categorization. To resolve this:
- Go to the Suppressed Listings tab in Seller Central.
- Review the reasons for suppression.
- Provide the required documentation or update product details accordingly.
- Once the issues are resolved, your listing should go live again.
4. Resolve Pricing Issues
If pricing errors are causing the inventory to be stranded, make sure your product is priced within Amazon’s acceptable range:
- Review Amazon’s pricing policies.
- Adjust your product price to ensure it falls within the minimum and maximum range.
- Once corrected, the listing should automatically reactivate.
5. Remove Stranded Inventory
If you’re unable to resolve the issues causing the stranded inventory, it might be best to remove the inventory from Amazon’s fulfillment center:
- Create a removal order in Seller Central by navigating to Inventory > Manage Inventory > Create Removal Order.
- You can choose to have the inventory returned to you or disposed of by Amazon.
- This option helps you avoid long-term storage fees if the product cannot be relisted.
How to Prevent Stranded Inventory in the Future
While it’s important to resolve stranded inventory quickly, it’s even more critical to prevent it from happening in the first place. Here are some strategies to help:
1. Regularly Monitor Listings
Make it a habit to regularly check your listings for errors or inactive statuses. The more proactive you are about monitoring your listings, the less likely you are to encounter stranded inventory.
2. Keep Inventory Levels in Check
Don’t overstock slow-moving products that could become stranded if their listings are deactivated or suppressed. Use inventory management tools to forecast demand and optimize stock levels.
3. Stay Compliant with Amazon Policies
Ensure that all your products meet Amazon’s listing guidelines and category requirements. Compliance with product documentation, certifications, and Amazon’s policies is crucial for preventing ASIN suppression.
4. Use Automated Tools
Leverage third-party software that automates inventory monitoring and alerts you to any listing issues or errors that may result in stranded inventory. This allows you to address issues before they affect your bottom line.
Conclusion: Take Control of Your Stranded Inventory
Stranded inventory can be a costly problem for Amazon FBA sellers, but with the right knowledge and tools, you can quickly identify and resolve these issues. By regularly monitoring your inventory and listings, addressing errors promptly, and following Amazon’s guidelines, you can keep your products available for sale and minimize unnecessary fees.
If you’re struggling with stranded inventory or other FBA challenges, Marketplace Valet can help. Our team specializes in Amazon account management and FBA optimization, offering tailored solutions to maximize your profitability and keep your business running smoothly. Contact us today for more information!
FAQs:
- What is stranded inventory in FBA? Stranded inventory refers to products stored in Amazon’s fulfillment centers that are not linked to an active listing and, therefore, cannot be sold.
- What are the common causes of stranded inventory? Common causes include listing errors, ASIN suppression, pricing issues, account suspension, and policy violations.
- How can I prevent stranded inventory? Prevent stranded inventory by regularly monitoring your listings, ensuring compliance with Amazon’s policies, and maintaining optimal inventory levels.
