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TechAmazon

Amazon Will Punish Sellers Who Don’t Move Stock From Its Warehouses

By
Lisa Marie Segarra
Lisa Marie Segarra
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By
Lisa Marie Segarra
Lisa Marie Segarra
Down Arrow Button Icon
June 30, 2018, 12:16 PM ET

Amazon’s massive online inventory is bellied by its high number of third-party sellers, and it appears so is its warehouse inventory.

Amazon is now cracking down on third-party sellers who are using that warehouse space without moving any stock. After June 30, Amazon will begin scoring third-party sellers with an Industry Performance Index, CNBC reported.

That score can go below 350 if a seller isn’t moving inventory — either by selling it or by removing products that haven’t sold. Once that score goes below 350, Amazon won’t let the third-party seller send more products to its warehouses, and the products that are there and exceed Amazon’s storage limits will bring an “overage fee.”

The scores will range from 0 to 1,000 and will be reassessed each quarter.

“As we continue to grow and support more sellers that desire to make their products Prime-eligible, we introduced changes that will help sellers manage their inventory and help us more efficiently receive inventory and deliver products to customers,” Amazon said in a statement to CNBC.

Fortune reached out to Amazon for a comment, but did not receive an immediate response.

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By Lisa Marie Segarra
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