What Does Reserved Mean on Amazon FBA and Does it Affect Seller Inventory?

Did you open the Inventory tab inside seller central to find a portion of your inventory set aside as ‘reserved’? Don’t worry; it’s nothing serious.

Amazon may reserve inventory for various reasons but releases them eventually. If your products are still in reserved status for a couple of weeks, get in touch with seller support to resolve the issue.

But first, why does Amazon reserve inventory?

Why is My Amazon FBA Inventory Reserved?

Amazon sets aside and reserves inventory due to the following reasons:

1. Product Verification: Amazon sidelines products for verification purposes, i.e., they want to inspect whether your products’ dimensions, authenticity, and unit weight are all as described. When validating products, Amazon reserves very few units.
2. Product Relocation: Amazon transfers some of your units to another fulfillment center if it results in cost-cutting or improved delivery times. Sometimes, distributing inventory closer to buyers is the only way Amazon can meet 1 to 2-day deadlines for prime customers.
3. Customer Orders: Amazon reserves customer orders currently being processed until they’re shipped out.  

Note: Inventory transfer between warehouses typically takes 1-5 days but, in some cases, can go as high as 30-days.

Does Reserved Inventory Affect Sales?

Reserved inventory could affect sales if it’s being transferred between various fulfillment centers. Because your inventory is currently being transported, potential buyers won’t be able to get their hands on your product within two days.

Prime customers—who are used to same day and 2-day shipping times—might just switch to your competitor’s listing because they want the product as soon as possible. So the fewer units are reserved, the better.

How to Check Reserved Inventory Levels?

For a more detailed look at the reserved status of your inventory, you could either download the reserved inventory report or login via your desktop browser for a quick overview.

To quickly view your inventory, locate the search bar inside your seller central dashboard on the top-right side of your screen and search for “reserved inventory report”. This is what you’ll see:

Enter the ASIN or FNSKU that is currently showing reserved units and hit the Check status button.

Amazon reserves inventory for multiple reasons. In the image above, our FNSKU is undergoing Product Verification and Product Relocation (referred to here as Product in transit).

If you want a detailed breakdown of your reserved inventory status, log into your seller central account and follow these steps:

Step 1: Hover over the Reports tab and select Fulfillment.

Step 2: Click on Reserved Inventory from the Inventory section located on the left-side of your screen.

Step 3: Download and view either the .csv or .txt file

View the downloaded file to see how many units are reserved for processing, verification, and relocation respectively. The reserved inventory report also contains the following field headers, here’s what they mean:

• reserved_customerorders: the number of products currently reserved for customer orders
• reserved_fc-transfers: the number of products being transported from one fulfillment center to the next
• reserved_fc-processing: the number of products that are currently under processing.

Note: In the reserved inventory report, “FC” stands for fulfillment center.

Amazon FBA Inventory Best Practices

Based on what we’ve learned about FBA reserved inventory, it’s safe to say Amazon sellers should implement best inventory management practices to reduce the chances of their products going in reserve.

Although the issue of reserved inventory isn’t in your hands, staying mindful of Amazon restock limits and peak shipping times helps keep business affairs on track.

Annual holidays like Black Friday, Cyber Monday, and Christmas place considerable stress on Amazon’s logistics network. That’s because third-party Amazon sellers want to capitalize on increased demand in the coming days and place large inventory orders beforehand. The influx of products can push a greater number of units into reserved status and most likely not available for prime shipping.

Staying on top of inventory management minimizes the risk of losing out on sales!

Conclusion – Become a Successful Amazon Seller

Having read this far, you’ve learned what reserved means on Amazon, how to check reserved inventory, and the importance of best inventory management practices. While the issue of reserved units is relatively minor, it can still result in lost sales.

Seemingly minor or non-issues like reserved inventory might seem harmless, but if ignored over time, have the collective potential to negatively affect your business. Ensure your Amazon store runs like a well-oiled machine by staying up to date with best seller practices. Whether you’re just starting your Amazon journey or been in the game for a while, ZonGuru has just what you need to improve your business. Sign up for a FREE trial today, cancel any time.