Amazon FBA Capacity Limits in 2025: Best Recommendations for FBA Sellers
In 2025, Amazon has implemented notable changes to its Fulfillment by Amazon FBA system, introducing stricter FBA capacity limits that are now directly impacting sellers’ operations.
This update has particularly affected those preparing for major sales events such as Prime Day. With projections shifting from six to five months of sales volume for capacity allocation, and some sellers experiencing cuts as high as 75%, managing warehouse operations, Amazon FBA storage, and inventory planning has become more complicated and time-sensitive than ever.
As part of its evolving logistics strategy, Amazon is placing increased pressure on sellers to optimize how they use storage space across fulfillment centers.
For businesses using large volume FBA prep models, the latest changes underscore the importance of predictive planning and technology-driven inventory oversight.
The Core Update: FBA Capacity Limits for May & June 2025
Starting in May 2025, Amazon revised the FBA storage policy by reducing the allocation period to five months of projected sales volume. While Amazon claims the goal is to drive more efficient storage usage and reduce warehouse congestion, the rollout created confusion.
Sellers received their new limits with very little notice, triggering disruption in inbound shipments and causing product availability issues just ahead of critical retail months.
Sellers accustomed to higher limits for Amazon FBA storage are now forced to reevaluate shipment cadences and rethink warehouse planning strategies.
Moreover, the consequences of non-compliance now include delayed check-ins, standard inventory, and increased holding costs, all of which can directly erode profit margins.
FBA Capacity Limits, Restock Limits and Prime Day
Amazon’s adjustment coincides with Q2 peak planning, especially for Prime Day in July. Under normal conditions, sellers would increase inventory throughput to capitalize on higher conversion rates.
However, the Amazon quantity limit restrictions are capping that growth potential, especially for fast-moving ASINs.
While Amazon insists that sellers submit additional capacity requests, the approval process remains opaque, often leaving businesses without sufficient capacity to prepare for events like Prime Day.
When sellers are denied additional space, despite high IPI or Inventory Performance Index scores, they face a difficult trade-off: either throttle advertising and demand generation or risk out-of-stock listings. This friction weakens the effectiveness of long-term sales planning and penalizes even compliant sellers.
How Amazon FBA Sellers Reacted to Sudden FBA Capacity Limits
Sudden and Significant Reductions
Sellers were not gradually introduced to these new limitations. Some saw a 75% reduction in allowable storage from April to May, which forced immediate reevaluation of replenishment strategies.
The sudden nature of the reductions placed particular strain on sellers dependent on Amazon SCOT or Supply Chain Optimization Technologies for forecasting.
Storage Limits Changed After Confirmation
Another challenge was the dynamic and sometimes contradictory nature of capacity announcements.
Sellers reported that storage limits changed even after being confirmed by Seller Central, invalidating already-approved shipment plans. This caused inventory bottlenecks, increased FBA prep overhead, and widespread seller frustration.
Penalized Despite Following Amazon’s Advice
Some sellers who followed Amazon’s official guidance, including spacing shipments and improving IPI metrics, were still penalized.
This created concern over inconsistencies in how the Amazon inventory system interprets performance indicators and distributes space.
Little Time to Adapt
With most updates happening days before enforcement, sellers had little time to clear out aged inventory or reroute goods. For high velocity brands, it became almost impossible to align marketing timelines with constrained capacity.
8 Proactive Steps to Regain Control after FBA Capacity Limits
1. Audit Inventory Performance
Evaluate SKU-level sell-through rates, unit age, and return frequency. Identify underperforming ASINs that drain capacity.
This is important to realigning inventory mix to fit within new limits. Amazon favors sellers with healthy sell-through and will deprioritize those with slow-moving inventory.
2. Get Rid of Excess Inventory Quickly
Use Amazon’s new Amazon return policy or discount-driven liquidation to offload non-performing products.
Amazon’s new return policy allows certain items to be relisted or returned to warehouses. Act before storage fees increase or removals are denied.
3. Submit Additional Capacity Requests Now
Don’t wait to hit your limit. Use Seller Central’s capacity dashboard to request additional space early. Provide performance justifications and projected sales to improve approval odds.
4. Integrate AWD into Your Fulfillment Strategy
Amazon Warehousing & Distribution AWD offers off-FBA storage solutions. Integrating AWD into your model can provide flexibility and buffer space before inventory enters the fulfillment center.
It’s a strategic response to FBA capacity limits and capacity limitations alike.
5. Adjust Shipment and Replenishment Cadence
Break down bulk shipments into smaller, more frequent deliveries. This helps maintain stock without breaching limits.
It also aligns better with Amazon quantity limit restrictions, which are now recalculated on a rolling basis.
6. Communicate Internally and With Partners
Ensure your 3PL partners, sourcing teams, and packaging vendors are aware of changing capacity restrictions.
Realigning large volume FBA prep schedules with new Amazon rules avoids congestion and late fees.
7. Boosting Profitability with FBA Reimbursement
Sellers should monitor reimbursements more closely. Miscounts, damage, and lost inventory during capacity transitions can result in financial loss. Using reimbursement tools can help recover revenue, offsetting the financial impact of lost capacity.
8. Implement Effective Inventory Systems
Integrate analytics tools that track real-time warehouse utilization and forecast demand.
Use Forceget’s logistics intelligence to maintain data synchronization across FBA, AWD, and 3PLs. This enhances adaptability when storage ceilings are changed on short notice.