Understanding Amazon Reserved Inventory: What It Is and How It Affects Sellers?
If you’re an Amazon seller, you may have noticed a portion of your inventory marked as “reserved” without knowing exactly why. This reserved inventory can impact your available stock, sales, and overall business flow.
In this blog, we’ll break down what Amazon reserved inventory is, the common reasons it happens, and most importantly, how to handle it effectively so your business keeps running smoothly.
What Is Amazon Reserved Inventory?
Reserved inventory refers to stock that is temporarily unavailable for sale on Amazon because it is being held for various reasons. While this inventory is still technically yours, it is “reserved” due to factors like pending orders, fulfillment center transfers, or issues at Amazon’s fulfillment centers.
Reasons for Amazon Reserved Inventory
Several scenarios can cause your inventory to enter reserved status on Amazon. Understanding these situations can help you manage your stock levels effectively and anticipate potential disruptions.
1. Pending Customer Orders
When customers place orders, a portion of your FBA inventory is reserved to fulfill them. This ensures the stock is available to complete the purchase, preventing it from being sold to other customers. The reserved quantity will remain in this status until the order is shipped.
2. Fulfillment Center (FC) Processing
During fulfillment center processing, your inventory may be reserved as Amazon prepares it for shipping. This status ensures the items are ready for immediate fulfillment once the order is finalized.
3. Fulfillment Center Transfers
Amazon operates multiple fulfillment centers, and sometimes inventory needs to be transferred between them. During this transfer, the inventory is reserved until it arrives at its destination. FC transfer status can impact your available inventory levels, causing delays in fulfilling customer orders.
4. Inventory Reconciliation
Periodically, Amazon conducts inventory audits to ensure the accuracy of stock levels at their fulfillment centers. If discrepancies are found—such as items being misplaced or lost—Amazon may reserve these items while they investigate. If the items are located, they are returned to your available inventory. If not, they may be removed, and you could receive a reimbursement.
5. Customer Returns
When customers return products, the items are often placed in reserved status while Amazon evaluates their condition. If the products meet Amazon’s resale standards, they may be returned to your available inventory. Otherwise, they may be classified as unsellable, leading to inventory removal or reversal.
How to Check the Reserved Inventory Status?
To check your Amazon reserved inventory levels, follow these simple steps. This will help you stay informed about your reserved units and manage your inventory effectively:
Log into your Amazon Seller Central account.
Navigate to the “Reports” section.
3. Select the “Fulfillment” option.
4. Click on the “Reserved Inventory” tab.
5. Review your daily reserved inventory reports.
How Reserved Inventory Affects Your Amazon Business?
Amazon reserved inventory can significantly impact your Seller Central account, often requiring you to take specific actions to maintain optimal inventory management.
Inventory Levels
Reserved inventory affects your visible stock levels on Amazon. If you don’t regularly monitor your inventory dashboard, you might underestimate the amount of available stock, leading to overselling or running out of high-demand items. Regularly checking your FBA reserved inventory ensures you maintain accurate inventory planning.
Financial Reconciliation
When inventory is reserved, it can lead to financial adjustments, especially if items are eventually reversed or reimbursed. You need to account for these changes in your financial records to avoid discrepancies in your profit calculations and maintain accurate bookkeeping.
Product Ranking
Your product’s ranking on Amazon is influenced by how efficiently you fulfill customer orders. When a significant portion of your inventory is reserved and not available for immediate shipment, it can negatively impact your product detail page conversion rates, as customers may be discouraged by extended delivery times. Lower conversion rates can indicate to Amazon that your product is less appealing, which may lead to a drop in your organic ranking.
Impact on Customer Satisfaction
Reserved inventory can delay the fulfillment of customer orders, especially if stock is tied up in fulfillment center transfers or processing. Delayed shipping can lead to customer dissatisfaction and negative reviews, which can hurt your seller performance metrics.
Amazon Restock Limits
Amazon imposes restock limits based on your sales velocity and storage space availability. FBA reserved inventory still counts toward your total inventory, potentially affecting your restock limits. This can make it challenging to replenish popular items, particularly if you’re facing supply chain issues or shipping delays.
Conclusion
Understanding Amazon reserved inventory is key to managing your stock effectively and keeping your business running smoothly. By knowing what it is, why it happens, and how to address it, you can prevent disruptions in your inventory levels, improve financial accuracy, and avoid negative impacts on product rankings and customer satisfaction.
Frequently Asked Questions:
Is there an Amazon Reserved Inventory Report available for FBA sellers?
Yes, FBA sellers can access the Amazon Reserved Inventory Report, which provides a breakdown of reserved units as part of broader Amazon inventory management and performance datasets.
How can I see which products are in Reserved Inventory on Amazon Seller Central?
You can view reserved FBA inventory by navigating to “Manage FBA Inventory” in Seller Central, where the “Reserved” column shows the number of reserved items for each product, giving you insight into your Amazon reserved inventory.
What is FC Transfer on Amazon?
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What are units reserved in Amazon's reserved inventory?
Units reserved in Amazon’s reserved inventory are those set aside for pending customer orders or returns. This affects your available stock and order fulfillment, impacting your overall Amazon inventory management.
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