Video Review #2 – Fulfillment by Amazon

Learning Goal: I’m working on a supply chain writing question and need a sample draft to help me learn.

Video: Amazon FBA (Fulfillment-by-Amazon) Inventory Quantity Limitations & Shipping Restriction 2020 | BEST SOLUTIONS!

https://www.youtube.com/watch?v=yqRNnxDuao0

Watch the video, perform additional research on Fulfillment-by-Amazon and answer the following questions:

1. This video is from August 2020, what do you think was pushing Amazon to implement inventory quantity limitations and shipping restrictions at that time?

2. Describe your understanding of Amazon’s Inventory Performance Index (IPI score) and why is it important to track that performance for every seller in the Amazon system?

3. Why do you think Amazon increased the IPI score threshold from around 350 to 500? What does that mean in practice for Amazon’s sellers?

4. Describe the proposed solutions for sellers to increase their IPI score. Explain them in detail. Would you suggest any additional solution(s)? Describe your thoughts.

5. Amazon introduced ASIN (Amazon Standard Identification Number) level quantity limits on products on FBA. What are the key issues for existing ASINs? Explain. What are the key issues for new ASINs? Explain.

6. Describe the proposed solutions for sellers to deal with the ASIN level quantity limits established by Amazon. Would you suggest any additional solution(s)? Describe your thoughts.

7. Based on this video, do you think that Amazon could be losing sellers? If yes, why would those sellers leave Amazon? What would be their alternate plan?

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