Overview

Amazon is expanding its monthly FBA capacity limits framework to Australia, Brazil, and Mexico, replacing the quarterly storage limits currently used in those marketplaces. This aligns these regions with the system already in place across the US, EU, UK, Japan, and India, and fundamentally changes how sellers in these markets will manage inventory replenishment and storage planning.

What's Changing

• Monthly replaces quarterly — Capacity allocations will now update every month instead of every quarter, giving sellers more frequent adjustments tied to recent performance.
• Volume-based measurement — Limits shift from unit counts to volume, more accurately reflecting the physical space inventory occupies in fulfillment centers.
• IPI score takes center stage — Your Inventory Performance Index score becomes a primary factor in determining how much capacity you receive each month.
• Three-month visibility — Amazon will confirm next month's limits and provide estimates for the two months after that, announced during the fourth week of each month.
• Personalized allocations — Limits are tailored to individual sellers based on sales history, forecasts, seasonal trends, and other performance signals.

How the New System Calculates Your Limits

Amazon will use a multi-factor formula to determine each seller's monthly capacity. Inputs include your IPI score, historical sales velocity, seasonal trends, product-level sales forecasts, new catalog additions, scheduled deals or promotions, shipment lead times, and overall fulfillment center availability. Sellers who move inventory efficiently and maintain strong sell-through rates should see more generous allocations over time.

The monthly cadence makes the system more responsive than its quarterly predecessor. A strong sales month could translate into increased capacity the following period, while stagnant inventory and a declining IPI score may tighten your allocation. This creates a feedback loop that actively rewards good inventory management.

Understanding Volume-Based Measurement

The shift from unit-based to volume-based limits is one of the most significant changes in this rollout. Under the new model, capacity reflects the actual cubic space your products consume rather than a flat unit count. This means sellers with compact, lightweight products can store more units than those selling bulky or oversized items, which better mirrors the real cost of warehouse space.