Amazon tells sellers it's broadening the types of products accepted at its warehouses, signaling improved supply chain issues - read the memo it just sent sellers

Avery Hartmans/Business Insider

• Amazon told sellers on Friday that it would expand the list of products accepted at its warehouses going forward.
• The change follows last week's announcement that Amazon would not accept nonessential products at its warehouses in the US and European regions until April 5.
• It said it will now determine product-eligibility on an "item-by-item" basis, and take into consideration a number of different factors, including demand and inventory levels.
• The change could still be frustrating for sellers as it's unclear what products are still accepted, and sellers have to individually check for their eligibilities on their own.
• Visit Business Insider's homepage for more stories.

Amazon is planning to accept more products coming into its warehouses going forward, a sign that its supply chain issues may be improving amid the coronavirus pandemic.

In an email sent to sellers on Friday, Amazon said it would expand the list of products accepted at its warehouses, as a follow up to last week's announcement that the company would prioritize essential products like "medical supplies, household staples, and other high-demand products."

Amazon said the accepted products will now be determined on an "item-by-item basis," not just limiting them to the six categories Amazon defined last week. It said a number of different factors will go into consideration when determining which products are allowed to be shipped into its warehouses. Those factors include "high-demand products customers need now; current inventory levels and inventory in transit; fulfillment center capacity; and our ability to adhere to the latest heath guidelines," according to the email.

"While we will continue prioritizing the products we can receive beyond April 5, we are now able to broaden the list," the email said. "Given our constrained capacity, we are doing this on an item-by-item basis."

Amazon's representative didn't respond to a request for comment. Friday's announcement affects sellers who use Amazon's storage and delivery network for a fixed fee, through a program called Fulfillment by Amazon.

It's the latest change in Amazon's warehouse policy that shows the strain put on the company's logistics may be loosening. The company is currently dealing with a number of issues, including shipping delays and warehouse safety complaints, as a growing number of coronavirus cases are reported at its facilities around the world.

"Despite the longer wait times in most areas for Prime eligible items, the demand for Amazon products seems to be higher than ever," said Will Tjernlund of Goat Consulting.

The new policy, however, could still be confusing for sellers, as it's up to the individual merchants to find out whether their products are accepted or not. Multiple sellers told Business Insider last week that they were frustrated by the rules around restrictions because even within the six categories Amazon had defined, some products were not being accepted at Amazon warehouses.

Here's the full message from Amazon:

Hello from Fulfillment by Amazon,

We are following up on our announcement of March 17. We continue to focus our available capacity on the highest priority products that customers need at this time, while also adhering to social distancing guidance within our fulfillment centers to keep our employees safe and healthy.

While we will continue prioritizing the products we can receive beyond April 5, we are now able to broaden the list. Given our constrained capacity, we are doing this on an item-by-item basis. We have updated the Restock Inventory page and Restock report in Seller Central so you can check which products are eligible for shipment creation. We consider many factors when determining eligibility, including high-demand products customers need now; current inventory levels and inventory in transit; fulfillment center capacity; and our ability to adhere to the latest health guidelines.

We will regularly update the Restock Inventory page and the Restock report as capacity allows us to receive additional products.

You can find answers to frequently asked questions on this Help page. Please note that Selling Partner Support does not have further guidance.

All of us at Amazon are working hard to restore regular operations, and we appreciate your patience and understanding.

Thank you for participating in FBA.

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