January 23, 2023

 

Amazon’s new FBA Capacity Management System (let’s call it FBA CMS!) was all over the ecosystem news last week.

 

But what hasn’t been covered is what it tells us about capabilities and why it’s relevant for 1P brands.

 

eCommerce leaders should read on to understand FBA CMS, why it isn’t that creative, the importance of forecasting and measuring customer lifetime value, and implications for 1P brands in 2023.

FBA CMS is meant to simplify and provide greater inventory control

3P-FBA sellers, like their 1P counterparts, have found forecasting, manufacturing, and inventory management increasingly difficult on Amazon since the pandemic started.

 

Part of 3P sellers’ issues stemmed from Amazon only providing one week of visibility and using two differently measured limits (storage and restock limits).

 

FBA CMS attempts to minimize these issues by offering one monthly limit metric along with a limit estimate for an additional two months.

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