What is Reserved Inventory?
Reserved inventory is inventory that is held by Amazon for a specific period of time. This can be done for a variety of reasons, such as to fulfill customer orders, to prevent out-of-stock situations, or to ensure that products are available for Prime shipping.
When a seller ships inventory to Amazon, the inventory is considered to be "reserved" until it is sold. This means that the seller cannot sell the inventory to another retailer or marketplace.
Reserved inventory can be a valuable tool for sellers, as it can help to ensure that products are available for customers when they need them. However, it is important to be aware of the costs associated with reserved inventory, as well as the potential drawbacks.
For more information on reserved inventory, please see our seller help page.
Why is Reserved Inventory Used?
Reserved inventory is used by Amazon to ensure that customers can always find the products they want, even when those products are out of stock. When a customer places an order for a product that is out of stock, Amazon will reserve a certain number of units from the seller's inventory. This ensures that the customer will still be able to receive their order, even if the seller does not have enough inventory to fulfill all of the orders that have been placed.
Reserved inventory can also be used to help sellers manage their inventory levels. By reserving a certain number of units from their inventory, sellers can ensure that they have enough stock to meet the demand for their products. This can help to reduce the risk of stockouts and lost sales.
In addition, reserved inventory can help sellers to improve their Amazon rankings. When a product is out of stock, Amazon will often display a message that says "Currently unavailable. We'll let you know when it's back in stock." This can discourage customers from purchasing the product, as they may not be sure when it will be back in stock. However, if a product has reserved inventory, Amazon will display a message that says "In Stock. Order now and we'll ship it as soon as it's available." This can encourage customers to purchase the product, as they know that it will be shipped as soon as it is back in stock.
How Does Reserved Inventory Work?
Reserved inventory is a system that Amazon uses to manage its inventory. When a seller lists an item for sale on Amazon, the seller agrees to sell the item to Amazon at a set price. This price is called the "reserved price." Amazon then reserves a certain amount of inventory for that item. This reserved inventory is used to fulfill orders from Amazon's customers.
When a customer places an order for an item, Amazon checks to see if there is enough reserved inventory to fulfill the order. If there is enough reserved inventory, Amazon will ship the item to the customer directly from its own warehouse. If there is not enough reserved inventory, Amazon will contact the seller and ask them to ship the item to the customer.
The reserved inventory system is designed to ensure that Amazon can fulfill orders from its customers quickly and efficiently. It also helps to ensure that sellers are able to meet their sales goals.
IV. Who Uses Reserved Inventory?
Reserved inventory is used by a variety of sellers on Amazon, including:
- Merchants who sell Fulfilled by Amazon (FBA) products
- Merchants who sell merchant-fulfilled products
- Merchants who sell products through Amazon's Vendor Central program
Each of these types of sellers has different reasons for using reserved inventory. For example, FBA sellers use reserved inventory to ensure that their products are available to Amazon customers when they need them. Merchant-fulfilled sellers use reserved inventory to reduce the risk of stockouts. And Vendor Central sellers use reserved inventory to manage their inventory levels and ensure that they are meeting Amazon's sales forecasts.
V. The Benefits of Using Reserved Inventory
There are a number of benefits to using reserved inventory, including:
- Increased sales
- Reduced shipping costs
- Improved customer experience
- Increased brand awareness
Let's take a closer look at each of these benefits.
Increased sales
When you have reserved inventory, you can offer your products for sale on Amazon even if they are not currently in stock. This can lead to increased sales, as customers will be able to find your products and purchase them even if they are not immediately available.
Reduced shipping costs
When you have reserved inventory, you can ship your products directly to Amazon's fulfillment centers. This can save you money on shipping costs, as you will no longer need to ship your products directly to customers.
Improved customer experience
When customers can find your products and purchase them on Amazon, they have a better experience. This can lead to increased customer satisfaction and loyalty.
Increased brand awareness
When your products are sold on Amazon, they are exposed to a wider audience. This can lead to increased brand awareness and sales.
Overall, there are a number of benefits to using reserved inventory. If you are looking to increase your sales, reduce your shipping costs, improve your customer experience, and increase your brand awareness, then reserved inventory is a great option for you.The Drawbacks of Using Reserved Inventory
There are a few drawbacks to using reserved inventory, including:
- It can increase your costs.
- It can make it more difficult to manage your inventory.
- It can lead to stockouts.
Let's take a closer look at each of these drawbacks.
**It can increase your costs.** When you sell an item on Amazon, you pay a referral fee. This fee is a percentage of the sale price, and it's the same whether you use reserved inventory or not. However, if you use reserved inventory, you also have to pay a storage fee. This fee is based on the amount of inventory you have in Amazon's warehouses, and it can add up quickly.
**It can make it more difficult to manage your inventory.** When you use reserved inventory, you have to keep track of two different sets of inventory: the inventory that you have in your own warehouse, and the inventory that Amazon is holding in its warehouses. This can be a challenge, especially if you're not used to it.
**It can lead to stockouts.** If you don't manage your reserved inventory carefully, you could end up with stockouts. This means that you won't be able to fulfill orders for your products, which can damage your reputation and hurt your sales.
Overall, the drawbacks of using reserved inventory need to be carefully considered before making a decision about whether or not to use it.
How to Set Up Reserved Inventory
To set up reserved inventory, you will need to:
- Create a seller account with Amazon.
- Add your products to your Amazon catalog.
- Enable the reserved inventory feature for your products.
Once you have enabled the reserved inventory feature, Amazon will automatically reserve a certain amount of inventory for each of your products. This reserved inventory will be used to fulfill orders that are placed on Amazon.com.
You can manage your reserved inventory in the Amazon Seller Central dashboard. You can view the amount of reserved inventory that is available for each of your products, and you can also add or remove reserved inventory as needed.
For more information on how to set up reserved inventory, please refer to the Amazon Seller Central Help Center.
How to Manage Reserved Inventory
Once you have set up reserved inventory, you will need to manage it on an ongoing basis. This includes keeping track of your reserved inventory levels, making sure that your products are in stock, and responding to any fluctuations in demand.
Here are some tips for managing your reserved inventory:
- **Keep track of your reserved inventory levels.** You can do this by using Amazon's Seller Central dashboard or by using a third-party inventory management tool.
- **Make sure that your products are in stock.** If your products are out of stock, you will not be able to fulfill orders and you may lose sales.
- **Respond to fluctuations in demand.** If demand for your products increases, you may need to increase your reserved inventory levels. If demand decreases, you may need to decrease your reserved inventory levels.
By following these tips, you can effectively manage your reserved inventory and ensure that your products are available to customers when they need them.
IX. How to Track Reserved Inventory
There are a few ways to track reserved inventory on Amazon.
1. **Use the Seller Central dashboard.** The Seller Central dashboard provides a detailed overview of your reserved inventory, including the total amount of reserved inventory, the number of units reserved for each ASIN, and the date and time when the inventory was reserved.
2. **Use the Amazon Inventory API.** The Amazon Inventory API allows you to programmatically retrieve information about your reserved inventory, including the ASIN, quantity, and status of each item.
3. **Use a third-party inventory management tool.** There are a number of third-party inventory management tools that can help you track your reserved inventory, including Amazon's own Inventory Management System (IMS). These tools can help you to automate the process of tracking your reserved inventory, and can also provide you with insights into your inventory levels and trends.
By tracking your reserved inventory, you can ensure that you have enough inventory to meet customer demand, and that you are not over- or under-stocking your products.
FAQs about Reserved Inventory
Here are some frequently asked questions about reserved inventory:
- What is reserved inventory?
- Why is reserved inventory used?
- How does reserved inventory work?
- Who uses reserved inventory?
- What are the benefits of using reserved inventory?
- What are the drawbacks of using reserved inventory?
- How to set up reserved inventory?
- How to manage reserved inventory?
- How to track reserved inventory?