Just weeks before the year’s biggest shopping event, Amazon has thrown many FBA sellers a major curveball – drastically slashing capacity limits. For many sellers, this move has triggered flashbacks to the Covid-era chaos, with reduced storage space, shipment restrictions, and uncertainty about remaining in stock ahead of Prime Day 2025.
How are Amazon Capacity Limits Decreasing for FBA Sellers?
Amazon has reduced FBA storage limits from roughly 6 to 5 months of expected sales. While this might seem like a subtle shift, some sellers are reporting capacity cuts of up to 75% without warning. Even top-performing sellers with high IPI scores and strong sales velocity are seeing an impact, making this change appear to be less about seller performance and more about Amazon saving space in their FBA facilities.
Amazon Recently Re-Introduced ASIN-Level Restock Limits:
Many Amazon sellers have also reported restock limits on the ASIN-level, something we saw in 2021 due to Covid-19 complications. These limits restrict the amount you can send into FBA for an individual product. ASIN-level restock limits make replenishing inventory more difficult and can lead to low stock.
For those prepping for Prime Day 2025, that means a single fast-moving product could be capped far below your expected demand. FBA sellers should be on the lookout for ASIN-level restock limitations and prepare a back-up plan if needed, such as offering a Fulfilled by Merchant option.
What Options do FBA Sellers Have to Achieve Higher Capacity Levels?
While reduced capacity limits and ASIN-level restock limitations are certainly frustrating to deal with, fortunately, there are several options to stay competitive and keep Amazon inventory flowing:
- Amazon Warehousing & Distribution (AWD): Amazon is increasingly nudging sellers toward this program, offering bulk storage, automatic replenishment, and no aged-inventory surcharges.
- Capacity Manager: Amazon’s Capacity Manager tool is becoming essential. FBA sellers can request additional space by bidding on a reservation fee – higher bids increase the chances of approval. This system rewards sellers who are willing to pay to play, especially those looking to stock up ahead of Prime Day.
- 3PLs (Third-Party Logistics Providers) and Hybrid Strategies: Many sellers are embracing a multi-channel fulfillment model, splitting inventory between FBA, AWD, and 3PLs. This approach provides a buffer against unexpected changes.
- Inventory Clean-up: Clearing out slow-moving stock, fixing stranded listings, and improving inventory turnaround can help increase IPI scores, which ultimately has a positive influence on your capacity score.
If you're a client looking for more information, contact your account team! If you’re interested in learning more about how Blue Wheel can aid in your brand efforts in online marketplaces, schedule a consultation with our team, we would love to hear from you.
Julia Asburry is the Senior Marketplace Support Analyst at Blue Wheel, where she plays a vital role in enhancing Account Health and Customer Service management. Her work empowers our clients to not just sustain, but truly thrive in the eCommerce landscape. With over half a decade of diverse experience in the industry, she wears many hats within the organization, bringing a wealth of expertise that propels us forward and helps set us apart.
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