How to use Amazon’s FBA Commingle Inventory option

What is Commingled Inventory?

Commingled inventory is a type of inventory storage system where multiple companies, including Amazon, store their products together in the same warehouse. This approach allows for greater efficiency and reduced costs, as each company can share the costs of storage and handling with other sellers. Commingled inventory is also known as “co-packing” or “shared storage”.

Benefits of Commingled Inventory

Commingled inventory offers several benefits to sellers:

1. Cost Savings: By sharing storage and handling costs with other sellers, you can reduce your overall expenses.
2. Increased Efficiency: Commingled inventory allows for faster processing and shipping of orders, as multiple products are being stored and shipped from the same location.
3. Improved Inventory Management: With commingled inventory, you can track your inventory levels and manage your stock more effectively.
4. Access to Amazon’s Logistics Network: As a seller with commingled inventory, you’ll have access to Amazon’s vast logistics network, which includes a fleet of trucks, warehouses, and delivery centers.

How to Use Amazon’s FBA Commingle Inventory Option

To use Amazon’s FBA commingle inventory option, you’ll need to follow these steps:

1. Meet Amazon’s Eligibility Requirements: To be eligible for commingled inventory, you must meet Amazon’s requirements for FBA sellers, including having a professional seller account and a minimum monthly sales volume.
2. Apply for Commingled Inventory: You’ll need to apply for commingled inventory through your Seller Central account. You can do this by going to the “Settings” tab and clicking on “Fulfillment by Amazon” -> “Commingled Inventory”.
3. Choose Your Warehouse Location: Once you’ve been approved for commingled inventory, you’ll need to choose a warehouse location for your products. You can choose from one of Amazon’s many warehouses across the United States.
4. Set Up Your Inventory: You’ll need to set up your inventory in your Seller Central account by creating a new inventory list or uploading your existing inventory list.
5. Label Your Products: You’ll need to label your products with your own unique identifier (such as a barcode or serial number) so that they can be tracked and identified.
6. Ship Your Products: Once you’ve set up your inventory and labeled your products, you’ll need to ship them to the chosen warehouse location.
7. Monitor Your Inventory: Once your products are in the warehouse, you’ll need to monitor your inventory levels regularly to ensure that you’re not running out of stock.

Best Practices for Commingling Inventory

To get the most out of Amazon’s FBA commingle inventory option, here are some best practices to keep in mind:

1. Choose the Right Warehouse Location: Choose a warehouse location that is close to your target market and has a high volume of traffic.
2. Keep Your Inventory Organized: Keep your inventory organized by using clear labels and categorizing your products by type or category.
3. Monitor Your Inventory Levels: Regularly monitor your inventory levels to ensure that you’re not running out of stock.
4. Use Amazon’s Inventory Management Tools: Use Amazon’s inventory management tools, such as the “Inventory Forecast” tool, to help you predict demand and manage your stock levels.
5. Communicate with Amazon: Communicate with Amazon regularly to ensure that any issues or concerns are addressed promptly.

Common Issues with Commingled Inventory

While commingled inventory can be a great way to streamline your logistics and reduce costs, there are some common issues that you may encounter:

1. Inventory Discrepancies: It’s possible that there may be discrepancies between the amount of inventory that you expect to have on hand and the actual amount of inventory that is stored in the warehouse.
2. Inventory Damage: When storing products in a shared warehouse, there is a risk that products may be damaged or lost.
3. Shipping Delays: Shipping delays can occur when products are stored in a shared warehouse, as there may be delays in processing and shipping orders.
4. Inventory Management Challenges: Managing inventory levels in a shared warehouse can be challenging, especially if there are multiple sellers storing products in the same location.

Commingled inventory is a valuable tool for sellers who want to streamline their logistics and reduce costs. By understanding how to use Amazon’s FBA commingle inventory option and following best practices for managing your inventory, you can ensure that your products are stored efficiently and effectively in Amazon’s warehouses. While there may be some common issues that you encounter, such as inventory discrepancies or shipping delays, these can be mitigated by communicating with Amazon regularly and using their inventory management tools.

Additional Resources

If you’re interested in learning more about commingled inventory or want to learn more about Amazon’s FBA program, here are some additional resources:

1. Amazon Seller Central: The official website for Amazon sellers, where you can find information on selling policies, fees, and more.
2. Amazon Seller University: A comprehensive online resource for Amazon sellers, where you can find tutorials, guides, and webinars on various topics related to selling on Amazon.
3. Amazon Seller Forum: A community forum for Amazon sellers, where you can connect with other sellers, ask questions, and share knowledge.
4. FBA Mastery: A comprehensive guide on selling on Amazon through FBA, covering topics such as product research, listing optimization, and fulfillment.

By following the tips and best practices outlined in this article, you can successfully use Amazon’s FBA commingle inventory option to streamline your logistics and reduce costs