As Amazon recently announced its Black Friday sale dates, sellers worldwide received alarming news: Amazon workers are planning coordinated strikes across 30 countries on November 25—the shopping holiday itself. The "Make Amazon Pay" coalition, comprising unions, environmentalists, and labor organizations, is spearheading this movement targeting Amazon's compensation policies.
The timing couldn't be worse for sellers already grappling with operational challenges. "This isn't turning Black Friday into 'Amazon Pay Day'—it's turning it into 'Seller Suffering Day'," lamented one frustrated merchant. With the strike's potential impact still uncertain, sellers are advised to expedite shipments and closely monitor logistics to mitigate potential disruptions.
Warehouse Crisis Compounding Problems
Adding to the turmoil, major FBA warehouses across the U.S. West Coast—including ONT8, SMF3, and LAS1—are experiencing severe congestion since late October. ONT8 reportedly faces over a month's delay for inbound shipments. Logistics providers have issued widespread alerts about these bottlenecks, urging sellers to adjust their inventory schedules accordingly.
With Amazon's recent abrupt reduction of storage capacity limits—halving many sellers' allocations—alternative solutions like Amazon Warehousing and Distribution (AWD) are gaining traction as viable workarounds.
Navigating Amazon's Inventory Maze
Amazon's inventory management system operates under two distinct constraints:
Replenishment Limits: These govern how much inventory sellers can send to fulfillment centers, calculated based on historical and projected sales independently from Inventory Performance Index (IPI) scores. Even high-performing sellers must carefully plan replenishments to avoid stockouts or overages.
Storage Limits: This cap on total inventory in Amazon's network primarily affects sellers with IPI scores below 400. Monitoring these metrics through Seller Central's inventory performance dashboard is crucial for proactive management.
Strategic Workarounds for Sellers
Amazon Warehousing and Distribution (AWD): Currently available only for U.S. sellers, this service offers:
- Automated replenishment from AWD facilities to FBA centers, maintaining continuous stock availability
- Integrated global inventory visibility across Amazon's logistics network
Storage Limit Manager: For sub-400 IPI sellers, this tool allows requesting additional capacity for high-demand products, with benefits including:
- Performance credit accumulation to improve IPI scores
- Storage fee offsets
- Temporary exemption from storage limits
As Black Friday approaches, sellers must balance cautious preparation with agile responsiveness. While labor actions and logistical challenges present significant hurdles, strategic inventory management and Amazon's own tools may provide pathways to navigate this high-stakes season successfully.