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Amazon introduced a new FBA capacity limit to streamline inventory management – January 23, 2023

Posted by Jimi Patel | January 23, 2023

Amazon has combined restock limits and quarterly storage limits into a single monthly metric known as the FBA capacity limit. This new limit determines how much inventory you can store at the FBA centers.

 

Capacity limits are determined by the following:

  • IPI score
  • Sales forecasts for your ASINs
  • Shipment lead time
  • Amazon warehouse capacity
  • Historical sales volume
  • Seasonal and peak selling periods for your products
  • Scheduled deals
  • New products added to your catalog

Below we’ve listed all the improvements of this new capacity management system:

  • A single, month-long FBA capacity limit: Navigating two sets of limits (storage and restock) has been confusing for sellers. Amazon has resolved these pain points by offering a single monthly limit to determine how much inventory you can send to and store at Amazon.
  • Estimated capacity limits: Amazon has also introduced estimated limits for the following two months to help you plan well in advance. Estimates may vary up or down based on how efficiently you are using capacity.
  • FBA capacity manager: With the new capacity manager, sellers can request additional capacity based on a reservation fee.
  • FBA capacity limits in volume (vs. units): To better reflect your capacity usage, Amazon will set capacity limits and measure your inventory usage by volume

Overage fees will be applicable if your inventory (not including open shipments) exceeds your FBA capacity limits.

 

If you find inventory management and shipment creation overwhelming, hire Amazon consultants from eStore Factory.