Understanding Amazon Reserved Inventory: What It Is and How It Affects Sellers?
21 Aug 2024
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?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
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.
Related Blogs
Are you a seller looking to tap into the massive market of private-label brands? Walmart, one of the world’s largest […]
Tired of your Walmart products getting lost in the shuffle? In this blog post, we’ll dive into the essential strategies […]
Ever wondered why some Amazon sellers seem to have a magic touch with product bundles? It’s not luck—it’s strategy. Bundling […]
If you’re a Walmart seller looking to grow your business through retail media, Walmart Connect could be a game-changer. But […]
If you’re an Amazon seller, you may have noticed a portion of your inventory marked as “reserved” without knowing exactly […]
Have you ever wondered what managing your own Amazon orders is like? Switching from Fulfilled by Amazon (FBA) to Fulfilled […]
Walmart Marketplace offers an exciting opportunity for sellers to reach a vast audience by listing their products on Walmart’s platform. […]
Selling products on online marketplaces has become a vital strategy for businesses to reach more customers. If you’re looking to […]
Are you a Walmart seller aiming to improve your visibility and sales? In this blog, we will explore Walmart SEO, […]
As an Amazon brand owner, maintaining control over your product listings is essential to protect your brand’s reputation and customer […]
Introduction Tired of losing out on Walmart sales to competitors? Want to know the secret to consistently winning the Buy […]
Are you an Amazon seller wondering what the IPI score is and how it affects your business? Look no further! […]
Introduction Starting an Amazon subscription box business presents a unique opportunity to tap into the growing trend of curated, recurring […]
Thinking about using Fulfillment by Amazon (FBA) to sell on the Amazon marketplace? Awesome! But before you box up your […]
Thinking about using Fulfillment by Amazon (FBA) to streamline your Amazon business? While FBA offers a convenient way to store […]
For FBA sellers, the Amazon Buy Box is the holy grail of product visibility. But with constant algorithm updates and […]
Have you ever wished you could offer customers pre-made packages of complementary products without the hassle of physically bundling them […]
Have you ever wanted to create a more branded and engaging presence for your products on Amazon? An Amazon storefront […]
When selling products on Amazon, it is crucial to follow their packaging requirements, rules, and guidelines. Proper packaging ensures that […]
A/B testing on Amazon can significantly enhance your product listings and boost sales. This method, also known as split testing, […]
Have you ever browsed Amazon and stumbled upon a product with a little blue badge that reads “Amazon’s Choice”? It […]
Introduction Selling on Amazon can be a great way to get your products out there. But once someone buys your […]
Ever feel like you’re missing something in your Amazon PPC Search Terms report? You might be! Sure, they show what […]
Amazon can be a fantastic platform to reach new customers, but keeping your virtual shelves stocked can get tricky. That’s […]
Navigating Amazon as a new seller can be tough, but there are tools and programs available to help. Amazon’s Launchpad […]
Have you ever scrolled through an Amazon search result page and noticed product recommendations nestled alongside the standard listings? These […]
Finding time for yourself while selling on a competitive marketplace like Amazon can be challenging. As a seller, your main […]
Starting an E-commerce business has become quite easy with Amazon, but it also brings heavy competition. Millions of Amazon sellers […]
As an Amazon seller, you know the importance of getting your products seen. But with millions of listings, how do […]
Ever scrutinized an Amazon product page and noticed the cryptic “Sales Rank”? Wondering what it means and how it impacts […]
Millions of products compete for customer attention on Amazon’s search results page, making it tough for your brand to stand […]
Are you selling products on Amazon and looking to increase your sales? This blog is for you. We’ll share tips […]
Are you an Amazon seller looking to boost your brand visibility and profitability? Are you feeling stuck in the cycle […]
Ever wonder what drives your online shopping habits? Perhaps a captivating product description, or an eye-catching professional photo? As it […]
For any seller on Amazon, understanding the A9 algorithm is crucial for success. This complex algorithm dictates which products appear […]
Are you an Amazon seller looking to turn those single purchases into recurring revenue? Look no further than the Subscribe […]
Amazon has become a go-to platform for all e-commerce business owners to launch and scale their e-commerce brands online. But […]
Mother’s Day, a time to celebrate the incredible women who raised us, is a prime opportunity for Amazon sellers to […]
In the ever-competitive landscape of Amazon, ranking high in organic search results is crucial for driving sales. While you might […]
If you’ve ever found yourself scratching your head over Sessions and Pageviews on your Amazon business reports, you’re not alone. At […]
Amazon is a massive marketplace, attracting millions of customers with diverse needs, preferences, budgets, and mindsets for shopping. To effectively […]
With Amazon boasting over $575 billion in retail sales for 2023, it’s no wonder so many sellers flock to its […]
Advertising on Amazon through pay-per-click campaigns can significantly enhance product visibility and sales for sellers. However, mastering Amazon PPC, with […]
Have you heard of the terms copyright infringement and plagiarism? If so, then Amazon Brand gating won’t be unfamiliar to […]
If you are running ads on Amazon, you’ll come across a sea of data in your advertising console. But does […]
Have you heard of the terms copyright infringement and plagiarism? If so, then Amazon Brand gating won’t be unfamiliar to […]
In the fast-paced world of e-commerce, where shoppers are bombarded with choices, standing out on platforms like Amazon is paramount […]
Are you planning to start an Amazon FBA store? If so, you’ll encounter a unique term – FNSKU. This seemingly […]
Introduction As an Amazon seller, you understand the power of reviews. They’re the lifeblood of trust and conversion on the […]
Are you struggling to get Amazon reviews on your product? Well, you are not alone! Reviews are the backbone of […]
Are you tired of bland Amazon product listings failing to grab attention? In today’s competitive online marketplace, standing out is […]
As an Amazon seller, understanding how your brand performs throughout the customer journey is vital for success. However, until recently, […]
As an Amazon seller, optimizing your business and maximizing profits relies heavily on data analysis. One invaluable tool for gaining […]
Are you struggling to get noticed on Amazon’s massive platform? Do your products get lost in a sea of similar […]
For any Amazon seller getting into the world of sponsored advertising, understanding the Advertising Cost of Sale (ACoS) is crucial. […]
A well-executed product launch on Amazon can be the key to unlocking success and gaining a competitive edge. As the […]
In the ever-evolving landscape of e-commerce, distinguishing between keywords and search terms is vital for optimizing product visibility and driving […]
Ever felt like you are throwing darts in the dark when it comes to your marketing efforts outside Amazon for […]
Amazon, the e-commerce giant, has successfully concluded a robust business year with outstanding performance in quarter 4. The most recent […]
Picture this: you have a great product on Amazon, but it’s not selling well despite having attractive images and a […]
The advertising landscape is evolving, and viewers are rapidly migrating from traditional cable TV to streaming platforms. This presents a […]
Feeling lost in the Amazon discount jungle? Struggling to reach the right customers and entice them to make the purchase? […]
Are you losing your product in the deep ocean of Amazon product listings? Want your product to stand out, rank […]
For years, Amazon sellers were in the dark. They couldn’t see what keywords customers were using to find their products, […]
Selling on Amazon can be tough with so many others doing the same in your category. That’s why it’s super […]
For Amazon sellers, understanding their customers has often felt like navigating a maze without a map. The missing link? A […]
Have you ever felt like your Amazon advertising campaigns are lost in a tangled jungle of keywords? You’re not alone. […]
When did you last give your Amazon PPC account a checkup? Regular Amazon PPC audits are crucial to ensure the […]
Embarking on the path of online selling? If so, you’re likely aware that Amazon is your ultimate destination. With a […]
Ever felt like your product is lost in the vast Amazon jungle? You’re not alone. With millions of shoppers actively […]
Amazon Sellers selling on the Amazon marketplace usually utilize Amazon advertising without keeping a close eye on the TACoS metric. […]
The rush of Black Friday and Cyber Monday might be over, but the opportunity for continued sales growth extends beyond […]
In the fierce Amazon advertising domain, where competition rises and costs increase, understanding and keeping track of the right metrics […]
Have you ever felt the frustration of campaigns going out of budget, leading to missing out on potential sales, or, […]
Amazon PPC campaigns can be a powerful tool for driving traffic and sales to your products. However, without proper structure, they […]
The Amazon Cyber Monday and Black Friday sales week is just around the corner. It’s no secret that this marks […]
Whether you are creating a new advertising campaign or optimizing existing ones, doing it manually from the Amazon ad console […]
Want to know what search terms people use to visit or purchase your product on Amazon? If yes, you’re in […]
When you are spending dollars or even more to get a click on your Amazon ads, you want to ensure […]
Are you an Amazon seller looking to maximize your profits and minimize your advertising costs? If so, you’re not alone. Many […]
Are you exclusively relying on traditional metrics such as CTR, CPC, CVR, or ROAS to make your campaign optimization decisions? […]
Navigating the ever-evolving landscape of Amazon’s online marketplace is essential for any seller looking to thrive on the platform. Among […]
As the holiday season approaches, businesses are gearing up for the highly anticipated Q4 rush. To ensure a successful Q4, […]
Do you regularly review your Amazon advertising reports? If not, you may be missing out on numerous opportunities. Amazon […]
Whether you’ve just launched a new product or have been selling on Amazon for a while, advertising on the platform […]
Amazon PPC bidding strategies that you choose play a significant role in the success of your Amazon Ads campaigns. As […]
Have you ever heard of a “catch-all campaign”? This single campaign can generate extra sales for you at a very […]
Amazon Prime Day is one of the largest global e-commerce sales events, attracting millions of customers worldwide. But how do […]
Are you looking to boost your brand’s visibility and drive more sales on Amazon? Look no further than Amazon Sponsored […]
Succeeding on Amazon in 2023 isn’t easy. Just listing your products and hoping for the best won’t work anymore. You […]
Are you bidding the same amount for all your ad placements on Amazon? If yes, then you’re missing out on […]
Whether you are looking to boost product discovery or target audiences further down the sales funnel who have already engaged […]
We, at Adbrew catalyze millions of dollars of ad spend monthly through our platform, with Sponsored Product Ads being the […]
Do you want to know how many clicks you should give a search term before adding it as negative in […]
Think of your product listing as a guiding light on the Amazon marketplace. It’s your chance to grab attention, tell […]
It is no longer a secret that shopping behavior on Amazon varies over the day. This is the reason why […]
Are you struggling to get the most out of your advertising budget on Amazon? Do you find that your campaigns […]
Ever run an Amazon Ad campaign and wondered why some sales weren’t directly linked to the products you advertised? That’s […]
If you’re managing Amazon PPC ads, it’s essential to have an effective and organized approach for target harvesting and movement. […]