Insights on Amazon Commingled Inventory: Boost Your Performance

If you’re an Amazon seller, you’ve likely heard of the term “Stickerless inventory” or “commingled inventory.” But what exactly does it mean, and how does it affect your business? In this article, we’ll dive into the details of the amazon commingled inventory system and how it can impact your Amazon FBA (Fulfillment by Amazon) business.

What is Commingled Inventory?

Stickerless, Commingled inventory is a system Amazon uses to streamline the fulfillment process for FBA sellers. In this system, products from different sellers are mixed in Amazon’s warehouses, regardless of who the original seller was.

Stickerless, commingled inventory is only available for Fulfillment by Amazon sellers. Items shipped directly by the seller do not have this designation.

How Does Commingled Inventory Work?

When sellers send their products to Amazon’s fulfillment centers, they are assigned a unique barcode called an FNSKU (Fulfillment Network Stock Keeping Unit).

This barcode is used to identify the seller’s products and track them throughout the fulfillment process.

However, in the commingled inventory system, Amazon also assigns each product a generic barcode known as an ASIN (Amazon Standard Identification Number). This barcode is used to identify the product itself rather than the seller.

When a customer places an order for a product, Amazon’s system will scan the ASIN barcode to determine which seller’s product should be shipped to the customer.

This means that if multiple sellers have the same product, Amazon may ship a product from a different seller than the one the customer purchased.

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Why Does Amazon Use Commingled Inventory?

The main reason for Amazon’s commingled inventory system is to improve efficiency and reduce customer shipping times. By mixing products from different sellers, Amazon can fulfill orders faster and more efficiently.

Additionally, commingled inventory allows Amazon to save space in their warehouses by not having to separate products from different sellers. This can also lead to cost savings for Amazon, which they can then pass on to customers through lower shipping fees.

How Does Commingled Inventory Affect FBA Sellers?

While Amazon’s commingled inventory system may seem beneficial for customers and Amazon, it can have some drawbacks for FBA sellers.

Risk Of Counterfeit Products

One of the biggest concerns for FBA sellers with commingled inventory is the risk of counterfeit products.

Since products from different sellers are mixed, there is a chance that a customer could receive a counterfeit product from another seller than the one they purchased from.

This can damage sellers who have worked hard to build a reputable brand and maintain quality control over their products.

If a customer receives a counterfeit product, they may leave a negative review or even file a complaint with Amazon, resulting in account suspensions or bans.

Difficulty In Tracking Inventory

Another issue with commingled inventory is the difficulty in tracking inventory. Since products from different sellers are mixed, it can be challenging to determine which seller’s products are being sold and how much inventory is left.

This can lead to overselling, where a seller sells more products than they have in stock. This can result in canceled orders, negative reviews, and potential account suspensions.

Impact On Branding And Marketing Efforts

For FBA sellers who have invested time and resources into building their brand and marketing their products, commingled inventory can be a setback. Since products from different sellers are mixed, it can be challenging to differentiate your products from others and stand out to customers.

This can also make it difficult to track the success of marketing efforts, as it may be challenging to determine which sales came from your specific products.

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How Can FBA Sellers Avoid Commingled Inventory?

Fortunately, there are ways for FBA sellers to avoid commingled inventory and maintain control over their products.

Amazon Project Zero

Brands can join Amazon Project Zero to protect against counterfeit products. The program offers “automated protections,” “self-service counterfeit removal,” and “product serialization.” With “product serialization,” Amazon adds a unique code to each item and verifies its authenticity before delivery. Brands pay between $0.01 to $0.05 per item for this service.

Use Manufacturer Barcodes

Another option is to use manufacturer barcodes instead of FNSKU barcodes.

This means sellers use the barcode provided by the manufacturer to identify their products rather than the FNSKU barcode assigned by Amazon.

This option is only available for products with a manufacturer barcode and may not be suitable for all sellers. Additionally, manufacturer barcodes can result in longer processing times and may be less efficient than FNSKU barcodes.

Enroll In Amazon’s Brand Registry Program

FBA sellers can also enroll in Amazon’s Brand Registry program, which allows them more control over their products and prevents commingled inventory.

This program requires sellers to have a registered trademark for their brand and provides additional tools for brand protection and enforcement.

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Benefits of Stickerless, Commingled Inventory

Stickerless, commingled inventory can be a double-edged sword, but it does come with some notable benefits.

First off, it simplifies logistics for Amazon sellers. By pooling inventory, Amazon can manage stock levels more efficiently, which often translates to faster shipping times.

This efficiency is particularly valuable during peak seasons or when dealing with high volumes of orders.

Another key benefit is the reduced need for labeling. With commingled inventory, products don’t require individual stickers or barcodes, which can save sellers time and money.

This can be a huge plus for sellers who deal with a large number of SKUs, as it minimizes the administrative burden.

However, it’s essential to weigh these benefits against the potential risks. While the system can streamline processes, it also brings challenges like the possibility of counterfeit products slipping into your inventory.

This can be particularly concerning when dealing with Amazon commingled inventory counterfeit issues.

Nevertheless, many sellers find that the operational efficiencies gained are worth managing these risks.

Items That Qualify For Stickerless, Commingled Inventory

Not all items are eligible for stickerless, commingled inventory. Generally,

Amazon restricts this system to certain product categories and types. For instance, items that are easily distinguishable by their packaging or product type often qualify.

This includes many generic or private label products where individual identification isn’t critical.

Products that do not qualify are usually those that are high-risk or high-value, such as electronics or luxury goods.

These items are typically kept separate to ensure quality and authenticity. For example, you’ll find that commingled inventory on Amazon may not include products with significant brand differentiation or items susceptible to counterfeit issues.

If you’re unsure whether your products qualify, it’s a good idea to consult Amazon’s guidelines or contact their support. Ensuring your items are correctly categorized can help avoid complications and ensure smooth operations.

How To Use And Turn on Stickerless, Commingled Inventory

If you’re interested in using the stickerless, commingled inventory system to help your business, follow these simple steps to enable it:

1. Find the Inventory Settings under the Fulfillment by Amazon area within the settings tab when you’re ready to send out your first shipment.
2. Press the Edit button and look for the stickerless, commingled inventory setting.
3. Click Enable, then save the changes to activate the service.

Note that you can turn the stickerless, commingled inventory on or off anytime. Remember that you’ll need to follow a labeling process, and all items must be relisted within your listings. If you retract an item from commingled inventory, you may receive another identical item from a different seller.

More Resources

To further explore the intricacies of Amazon commingled inventory, there are several valuable resources available:

1. Amazon FBA Calculator: This tool helps you estimate your potential costs and profits, which is crucial for understanding the financial impact of using commingled inventory.

2. The Amazon SEO Playbook: A guide to optimizing your product listings for better visibility, which is essential when navigating the complexities of Amazon commingling.

3. The 2022 Ultimate Amazon Buy Box Guide: This resource offers insights into how commingled inventory might affect your chances of winning the Buy Box.

4. 7 Ways to Successfully Liquidate Amazon Inventory: Useful for understanding how to manage and move inventory that may be affected by the commingling process.

Increase Marketplace Performance And Profits

Leveraging Amazon commingled inventory can have a significant impact on your marketplace performance and profits.

By streamlining inventory management, you can reduce operational costs and improve your shipping times, both of which contribute to better customer satisfaction and potentially higher sales.

To maximize these benefits, consider integrating tools and strategies that enhance your inventory management.

This might include using advanced inventory tracking software or employing Amazon’s Brand Registry Program to protect your products from counterfeit issues.

Ensuring that your products are well-managed and properly categorized can help you make the most of the efficiencies that commingled inventory offers.

In summary, while there are risks associated with commingled inventory, understanding and managing these can lead to improved performance and increased profitability in the highly competitive Amazon marketplace.

Conclusion

While Amazon’s stickerless, commingled inventory system can streamline logistics and reduce labeling costs,

it also poses risks such as counterfeit issues and tracking difficulties. By understanding how the system works and exploring alternative options, FBA sellers can make informed decisions to manage their inventory effectively and protect their brand.

Staying proactive with strategies like using Amazon Project Zero, manufacturer barcodes, and enrolling in Brand Registry can help mitigate these risks and maximize the benefits.

FAQ

What Is Amazon Commingled Inventory?

Amazon commingled inventory refers to a system where inventory from multiple sellers is pooled together in the same warehouse.

This means that products from different sellers are stored together and may be mixed in the same bin.

While this system can streamline logistics and reduce costs, it also has potential risks, such as the possibility of counterfeit products affecting your stock. Understanding how Amazon commingled inventory works can help you better manage these risks.

What Does Commingled Mean On Amazon?

On Amazon, commingled means that inventory from different sellers is mixed together in Amazon’s fulfillment centers.

This system aims to simplify warehouse management and speed up shipping times by consolidating similar products.

However, this approach can lead to issues such as the risk of receiving counterfeit items or difficulty in tracking your specific inventory.

How To Change Commingled Inventory On Amazon?

To manage or change your commingled inventory settings on Amazon, you can take several steps.

Start by accessing your Amazon Seller Central account and navigate to the “Inventory” section.

From there, you can adjust your inventory settings, such as opting for stickered inventory or using manufacturer barcodes to differentiate your products.

For more detailed guidance, consult Amazon’s help resources or contact their support team.

What Is Amazon Inventory Liquidation?

Amazon inventory liquidation refers to the process of selling off excess or unsold inventory at a discounted rate, often to clear out stock and recover some value.

This process can be crucial for sellers dealing with overstock or products that are not selling well.

While not directly related to Amazon commingled inventory, understanding liquidation options can help you manage your overall inventory strategy more effectively.

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