What is Reserved Inventory in Amazon FBA?
Reserved inventory is inventory that is not available for sale because it is being held for a specific reason. For example, reserved inventory may be held for a customer order, a promotional event, or a return.
When inventory is reserved, it is not counted towards your available inventory balance. This means that you can't sell the reserved inventory and you won't earn any revenue from it.
Reserved inventory can have a significant impact on your Amazon business. If you have a lot of reserved inventory, it can mean that you're not able to sell as much product as you could be. This can lead to lost sales and revenue.
It's important to understand why your inventory is reserved and what you can do to reduce or avoid reserved inventory.
II. Why is My Amazon FBA Inventory Reserved?
There are a few reasons why your Amazon FBA inventory might be reserved.
- **Orders that have been placed but not yet shipped.** When a customer places an order for a product that you sell on Amazon, the inventory for that product is reserved until the order is shipped. This is to ensure that there is enough inventory to fulfill the order.
- **Amazon pre-orders.** Amazon sometimes offers pre-orders for products that are not yet available. When a customer places a pre-order for a product, the inventory for that product is reserved until the product is released.
- **Amazon backorders.** If a product is out of stock, Amazon may place a backorder for the product. This means that the customer will be charged for the product and the order will be shipped as soon as the product is back in stock. The inventory for the product is reserved until the order is shipped.
- **Amazon Prime Now and Amazon Prime Pantry orders.** Amazon Prime Now and Amazon Prime Pantry orders are typically fulfilled from local warehouses. This means that the inventory for these orders is reserved at the local warehouse until the order is picked, packed, and shipped.
If you are not sure why your Amazon FBA inventory is reserved, you can contact Amazon Seller Support for more information.
How Much Does Reserved Inventory Cost?
Reserved inventory does not cost anything to store. However, you will be charged a fulfillment fee when the reserved inventory is sold. The fulfillment fee is based on the size and weight of the item, as well as the shipping method.
IV. How Long Does Reserved Inventory Last?Reserved inventory typically lasts for 14 days. However, there are a few exceptions to this rule. For example, if an item is pre-ordered, the reserved inventory will last until the item is shipped. Additionally, if an item is part of a promotion, the reserved inventory will last until the promotion ends. If you need to extend the reserved inventory for an item, you can do so by contacting Amazon Seller Support. However, keep in mind that Amazon may not always approve your request.
Reserved inventory can be a pain, but it's important to understand how it works so that you can manage it effectively. By following the tips in this article, you can reduce the amount of reserved inventory you have and keep your Amazon business running smoothly.
How to Reduce Reserved Inventory
There are a few things you can do to reduce your reserved inventory levels.
- **Increase your sales.** The most obvious way to reduce your reserved inventory is to sell more products. This means marketing your products effectively, pricing them competitively, and providing good customer service.
- **Optimize your listing.** Make sure your listing is well-written and accurate, and that it includes all of the relevant information that potential customers need to know. You can also try using Amazon's A+ Content feature to create a more visually appealing and informative listing.
- **Use Amazon's Fulfillment by Amazon (FBA) service.** FBA can help you reduce your reserved inventory levels by storing your products in Amazon's warehouses and shipping them directly to customers. This can free up space in your own warehouse and reduce the amount of inventory that you need to carry.
- **Consider using a third-party logistics (3PL) company.** A 3PL company can provide warehousing, fulfillment, and shipping services for your products. This can be a more cost-effective option than FBA if you have a large amount of inventory.
By following these tips, you can reduce your reserved inventory levels and improve your cash flow.
How to Avoid Reserved Inventory
There are a few things you can do to avoid reserved inventory in Amazon FBA.
First, make sure that you are properly forecasting demand for your products. This means that you are ordering enough inventory to meet the demand, but not so much that you have excess inventory that is reserved.
Second, you can try to sell your products through other channels, such as your own website or a third-party marketplace. This can help to reduce the amount of inventory that you need to send to Amazon FBA.
Finally, you can try to sell your products at a higher price. This will make it more likely that your products will sell quickly and that you will not have any reserved inventory.
If you are still experiencing problems with reserved inventory, you can contact Amazon FBA support for help.
What Happens to Reserved Inventory When an Order is Placed?
When an order is placed for a product that is in reserved inventory, the reserved quantity is deducted from the total quantity of that product. This means that the product is no longer available for sale until the order is fulfilled.
If the order is fulfilled within the reserved period, the reserved quantity will be returned to your inventory. However, if the order is not fulfilled within the reserved period, the reserved quantity will be forfeited and you will not be able to sell that product again.
It is important to note that the reserved period for Amazon FBA inventory is typically 90 days. This means that if an order is not fulfilled within 90 days, the reserved quantity will be forfeited.
You can avoid having your reserved inventory forfeited by fulfilling orders within the reserved period. You can also reduce your reserved inventory by selling more products or by sending more products to Amazon FBA.
What Happens to Reserved Inventory When an Order is Canceled?
When an order is canceled, the reserved inventory for that order is released back to your account. This means that you can sell the inventory again or have it shipped to you.
However, it is important to note that if the order is canceled after the inventory has already been shipped to Amazon, you will not be able to get the inventory back.
In addition, if the order is canceled due to a customer return, the reserved inventory will not be released back to your account. Instead, it will be sent to Amazon's fulfillment center and processed as a return.
IX. What Happens to Reserved Inventory When an Item Is Returned?
When an item is returned to Amazon, the reserved inventory for that item is released. This means that the item can be sold again. However, if the item is not sold within 30 days, it will be sent back to the seller.
If the item is sold within 30 days, the seller will receive a credit for the amount of the sale. However, the seller will also be charged a return fee. The return fee is typically 5% of the sale price.
In some cases, Amazon may decide to keep the returned item for themselves. This can happen if the item is damaged or if the seller does not have a return policy in place. If Amazon keeps the item, the seller will not receive a credit for the sale.
It is important to note that reserved inventory is not the same as unsellable inventory. Unsellable inventory is inventory that Amazon has determined cannot be sold. This can happen for a variety of reasons, such as damage, defects, or expiration dates. Unsellable inventory is not released when an item is returned. Instead, it is sent back to the seller or destroyed.