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How to Overcome Amazon Inventory Restrictions with a Local Warehouse

Firing The Man · January 25, 2022 · 39 min

Summary

Amazon FBA restrictions are a growing pain point for sellers. This episode explores how owning or utilizing a local warehouse, coupled with FBM strategies, can provide greater control, reduce costs, and improve fulfillment for Amazon sellers. It also delves into alternative warehousing solutions like 3PLs and subleasing.

Key takeaways

Themes

amazon & marketplacessupply chain & operationsfinance & fundraising

Topics covered

amazon inventory restrictionsamazon fbm strategieslocal warehouse solutions3pl alternativesinventory performance index

Episode description

Episode 109 In this episode, we talk about our experience in owning a warehouse for our ecommerce business and why you should consider building or buying one too. For instance, it offers benefits relating to Amazon FBM (Fulfilled By Merchant). If you think however that owning a warehouse is not fit for your business at the moment, you can explore a few alternatives like subleasing a big warehouse, using third-party logistics, and buying a rental property. Listen to this episode and gr...

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Frequently asked about this episode

What does this episode say about amazon & marketplaces?
Consider transitioning from FBA to FBM for products facing frequent Amazon inventory restrictions or high storage fees, leveraging a local warehouse for improved control and profitability.
What does this episode say about supply chain & operations?
Evaluate the cost-benefit of owning or renting a local warehouse versus relying solely on Amazon FBA, especially if you have consistent inventory and want to diversify fulfillment.
What does this episode say about finance & fundraising?
Explore alternatives to full warehouse ownership, such as subleasing existing space or partnering with a 3PL, to mitigate startup costs while still gaining inventory control benefits.
What does this episode say about amazon & marketplaces?
Implement strategies to improve your Amazon Inventory Performance Index (IPI) score by maintaining efficient inventory turnover and utilizing FBM for slower-moving or oversized items.
What does this episode say about amazon & marketplaces?
Diversify your fulfillment channels beyond Amazon FBA to build business resilience and reduce dependence on a single platform, using a local warehouse as a hub for multiple sales channels.

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