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  • Writer's pictureBrian Cummings

Amazon FBA Capacity Limits (Updated Guide 2024)

Updated: Feb 21

As the e-commerce landscape continues to evolve, Amazon remains a dominant player, connecting millions of sellers with a vast customer base. However, this dynamic marketplace comes with its own set of rules and challenges. One critical aspect that every Amazon FBA seller needs to navigate are the FBA capacity limits.

Understanding Amazon FBA capacity limits is essential for optimizing operations, managing inventory effectively, and ensuring a seamless customer experience. In this guide, we'll provide you with details on Amazon's FBA capacity limits updated for 2024, providing you with insights, strategies, and practical tips to thrive in the ever-changing world of online selling.

Let's dive in and explore how you can master FBA capacity limits to elevate your Amazon business to new heights.

Looking for an FBA center near you? Here's how you can easily find Amazon Fulfillment Centers located in the US. Find an Amazon Warehouse Near You!

What are FBA Capacity Limits and Who is Affected?




FBA Capacity Limits are restrictions on the amount of inventory that Amazon sellers can send to fulfillment centers, affecting sellers who use FBA for storage and shipping.

Definition and explanation of FBA capacity limits

FBA stands for Fulfillment by Amazon. It's a service where Amazon stores, packs, and ships items for sellers. FBA capacity limits are the limits on how much stock a seller can store in Amazon's warehouses.

If you send more than your limit to Amazon warehouses or if your stuff sits long without selling, fees may go up! Keep an eye on your inventory use and sales rates to avoid extra costs.

Changes in Amazon's FBA Capacity Management System

Amazon has recently implemented a new FBA capacity management system, offering sellers greater control and increased capacity limits for their inventory.

Overview of the new system and its features

Amazon has introduced a new system for managing FBA capacity limits, which gives sellers more control and visibility over their inventory. The goal is to help you avoid overstocking or running out of stock so that you can fulfill customer orders efficiently.

Starting March 1, 2023, Amazon has been providing one monthly limit for each storage type instead of weekly updates. This means sellers now have a clearer understanding of their available space throughout the month.

Additionally, Amazon is now measuring inventory usage based on volume rather than units, making it easier for you to gauge how much space your products occupy.

Benefits for sellers, including greater capacity limits and control

The new FBA capacity limits in 2024 give most sellers more inventory capacity and control than before.

  1. More visibility and control: The new FBA capacity management system provides sellers with greater visibility and control over their inventory capacity.

  2. Increased storage space: Sellers now have the opportunity to store more products in Amazon's fulfillment centers, allowing them to expand their business and meet customer demand.

  3. Improved planning and inventory management: With higher capacity limits, sellers can better plan their inventory to avoid overstocking or running out of stock, ensuring a smooth fulfillment process.

  4. Reduced fees: By utilizing more of their allocated storage space, sellers can optimize their costs by reducing fulfillment and storage fees associated with excess inventory or long-term storage.

  5. Launch new products with ease: The increased capacity limits allow sellers to launch new products without worrying about limited storage space, enabling them to scale up their business without constraints.

  6. Better seller performance: Maintaining healthy inventory levels within the allocated capacity limits can positively impact a seller's performance metrics, such as Inventory Performance Index (IPI), which in turn affects factors like placement in search results.

How FBA Capacity Limits Impact Amazon Sellers

FBA capacity limits have a significant impact on Amazon sellers, as they must maintain a good IPI score and employ strategies to maximize their inventory capacity while managing seasonal fluctuations.

Additionally, sellers can request higher limits and carefully plan inventory to avoid overstocking and excessive fulfillment fees.

Importance of maintaining a good IPI score

Maintaining a good IPI score is crucial for Amazon sellers. Your Inventory Performance Index (IPI) score reflects how well you manage your inventory, and it affects your FBA storage limits.

A higher IPI score means better availability of your products in Amazon's fulfillment centers. It also helps you avoid overstocking or understocking, which can lead to increased fees and lost sales.

By monitoring and improving your IPI score, you can optimize your inventory management and ensure smooth operations on the platform.

Strategies for maximizing capacity and planning inventory

To maximize your FBA capacity and plan your inventory effectively, here are some strategies to consider:

  • Monitor your IPI score: Maintaining a good IPI (Inventory Performance Index) score is crucial for maximizing your FBA capacity. Aim to keep your score above 350 to avoid any restrictions on storage.

  • Optimize storage space: Utilize the available cubic feet efficiently by considering the size and weight of your products. This will help you make the most of the storage capacity system.

  • Plan for seasonal fluctuations: Take into account seasonal demand and adjust your inventory accordingly. By forecasting trends and adjusting stock levels in advance, you can ensure that you have enough inventory during peak seasons without overstocking.

  • Request higher limits: If you anticipate increased sales or have a need for more storage, you can request higher limits from Amazon. Provide them with relevant data such as past sales performance and projected growth.

  • Launch new products strategically: When introducing new products, plan ahead to ensure you have sufficient capacity for storing and fulfilling orders. Consider staggered launches or prioritizing high-demand items to manage capacity more effectively.

  • Optimize fulfillment costs: Regularly review your fulfillment costs, including shipping fees and long-term storage fees. By optimizing these expenses, you can free up funds to invest in increasing your capacity as needed.

  • Use inventory management tools: Leverage various inventory management tools available to track sales velocity, forecast demand, and streamline replenishment processes. These tools will help you make data-driven decisions when it comes to managing your inventory.

Incidentally, do you have products that might qualify under the Amazon FBA Small and Light program? Here's how to enroll small products and lower your FBA fees.

Keep Yourself Updated and Optimize Your FBA Business

As we've explored in this guide, the landscape of online selling is shaped by various factors, including storage capacity limits for Amazon FBA sellers. By keeping up with the latest updates and understanding how to optimize your inventory management within Amazon's FBA capacity limits, you position your business for success.

Embrace the insights shared here, adapt your strategies accordingly, and continue to monitor Amazon's guidelines to ensure your business continues to thrive. Remember, mastering FBA capacity limits isn't just about compliance; it's about achieving operational excellence and delivering top-notch service to your customers.

Here's to your continued growth and prosperity as an Amazon seller in 2024 and beyond!

That growth and prosperity could greatly benefit from understand Amazon FBA Seller Size Tiers and FBA Fees. Click on the link to find out more.

We're here to help you succeed in ecommerce – reach out here.

FAQs

1. What are FBA capacity limits?

FBA capacity limits refer to the maximum amount of storage space available for sellers in Amazon's fulfillment centers.

2. How do changes in FBA capacity limits affect sellers?

Changes in FBA capacity limits can impact sellers by limiting the amount of inventory they can send to Amazon's fulfillment centers, potentially affecting their ability to meet customer demand and fulfill orders efficiently.

3. How can sellers adapt to changes in FBA capacity limits?

Sellers can adapt to changes in FBA capacity limits by optimizing their inventory management strategies, utilizing alternative fulfillment options such as Seller-Fulfilled Prime or multi-channel fulfillment, or exploring other e-commerce platforms for selling their products.


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