Amazon will restrict warehouse inventory during the holidays

Amazon is putting in place new restrictions on warehouse inventory for third-party sellers, according to a memo obtained by Business Insider.

The move is meant to ensure the company’s warehouses have enough storage space for holiday inventory later this year.

Amazon has been inundated by orders during the Covid-19 pandemic and, early in the outbreak, its supply chain buckled causing long delays in orders. Now the company is taking steps to ensure that supply chain operates smoothly through peak ordering times, like the upcoming holidays.

Already the company has hired 175,000 new workers and it’s rumored to have delayed until October its own shopping holiday, known as Prime Day, which offers discounts on thousands of items.

Amazon told third-party sellers Monday that for the first time it will restrict quantities of certain products that they can store in its warehouses.

“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,” the memo said, according to Business Insider.

Amazon also said that, starting Tuesday, it will waive product removal fees that it charges sellers who fail to use warehouse space efficiently.



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