Amazon’s New FBA Capacity System Explained
Amazon is rolling out a new FBA capacity management system designed to give sellers more control, predictability, and visibility over their storage space. This update will help sellers manage inventory more effectively and gain the flexibility to request additional capacity when needed.
Why This Update Matters for Sellers
For years, many sellers have expressed concerns about managing inventory with Amazon’s existing systems. They wanted higher storage limits, better planning tools, and more control over how much stock they could send. In response, Amazon developed this streamlined solution to simplify inventory management while helping sellers grow their businesses.
4 Key Features of the New FBA Capacity Management System
1. One Monthly FBA Capacity Limit
Previously, sellers had to manage both storage and restock limits, which often created confusion and made inventory planning difficult. The new system replaces this with a single, monthly limit that defines how much stock can be sent and stored at Amazon. Amazon Seller account management will be notified of their upcoming month’s limit in the third full week of each month through the Capacity Monitor in Seller Central and email alerts. Most sellers will now enjoy higher storage volumes than before.
2. Estimated Capacity for Three Months in Advance
Planning inventory takes time, and many sellers struggled with short-term restock updates. To address this, Amazon will now provide estimated capacity limits for the upcoming three months. These estimates are based on space, labor availability, and sellers’ inventory efficiency, measured by their Inventory Performance Index (IPI) score. While estimates may shift, this feature will help sellers plan procurement and supply chain activities more effectively.
The IPI score acts like a “credit score” for inventory management, showing how efficiently sellers use their storage.
3. Option to Request More Capacity
Through the new Capacity Manager tool, sellers can request additional space beyond their assigned limit. Sellers set a reservation fee per cubic foot, and capacity is allocated starting with the highest bids. However, sellers won’t necessarily pay extra—as performance credits from sales can offset up to 100% of the reservation fee. This means as long as products sell, additional storage can effectively be free.
4. Capacity Measured in Cubic Feet, Not Just Units
Instead of measuring limits by units alone, Amazon will now calculate usage in cubic feet. This reflects the actual space products occupy in fulfillment centers and transportation. To make planning easier, sellers will still see an estimated conversion into units, allowing them to understand how many products fit within their assigned cubic volume.
FBA capacity limits will continue to be influenced by factors such as IPI scores, sales forecasts, shipment lead times, and available space at Amazon’s fulfillment centers.
Final Thoughts
Amazon’s new FBA capacity management system is a big step toward simplifying storage and improving seller experience. By introducing monthly limits, offering three-month forecasts, and giving sellers the flexibility to request more space, this system reduces uncertainty and empowers sellers to scale more confidently. For Amazon businesses, it’s a chance to better align inventory management with sales goals and supply chain planning.
If you’re an Amazon seller, staying updated with these changes and leveraging tools like the Capacity Manager will be key to maximizing storage efficiency and driving growth beyond.
