Amazon Replaces Dual Inventory Limits With Unified Monthly FBA Capacity System
In early 2024 Amazon replaced weekly inbound limits and quarterly storage caps with a single monthly capacity figure measured in cubic feet. Sellers receive a monthly limit (e.g., 1,200 ft³ for May) announced in the third full week of the prior month, and can bid for extra space via a reservation‑fee program.
Overview
Amazon has overhauled the way Fulfillment by Amazon (FBA) sellers track inventory capacity. Beginning in early 2024, the former pair of weekly restock limits and quarterly storage limits has been replaced with a single, monthly capacity figure for each storage type. The new limit is expressed in cubic feet rather than unit counts, giving sellers a clearer view of the actual warehouse space they occupy. This shift streamlines inventory planning and directly impacts how sellers forecast purchases, ship stock, and manage costs.
Key Points
- One limit replaces two — Sellers now receive a single monthly capacity number instead of juggling separate weekly inbound limits and quarterly storage caps.
- Measured in cubic feet — Capacity is calculated by volume, aligning the metric with the physical space used in Amazon’s fulfillment centers.
- Three‑month forecast — Amazon publishes the upcoming month’s limit during the third full week of the current month and also provides estimated limits for the following two months.
- Bid‑for‑extra space — Through a reservation‑fee program, sellers can request additional capacity; higher bids are prioritized for allocation.
- Overage fees tied to peak limit — If on‑hand inventory exceeds the assigned limit, fees are assessed based on the highest estimated or confirmed limit for that period.
How the Unified Monthly Capacity System Works
- Monthly capacity assignment — Each seller is allocated a single volume‑based limit that covers both inventory already stored at Amazon and inbound shipments that have been created but not yet received. For example, a seller of home‑decor items might receive 1,200 ft³ for the month of May.
- Advance notification — Amazon posts the limit on the FBA dashboard and sends an email during the third full week of the prior month. A seller planning a June launch would see the June limit on the last week of May, allowing time to adjust purchase orders.
- Volume‑based tracking — The dashboard shows current on‑hand volume, the remaining capacity for the month, and an estimated unit count that would fit within the allocated cubic footage. A seller of small electronics might see that 1,200 ft³ translates to roughly 45,000 units, while a seller of bulky pillows would see a much lower unit estimate.
Analysis & Recommendations
Why This Matters
The unified monthly limit consolidates inbound and storage constraints, so sellers must recalculate SKU volumes and align purchase orders to avoid overage fees. The reservation‑fee bidding and performance‑credit mechanism directly impact cost management and sales strategy during peak periods.
Key Takeaways
- Amazon now provides one monthly capacity number in cubic feet, replacing separate weekly inbound and quarterly storage limits.
- Limits are posted during the third full week of the prior month; e.g., the June limit appears in the last week of May.
- Sellers can request extra space by bidding a reservation fee (e.g., $0.12 / m³) and earn performance credits to offset that fee.
- Overage fees are assessed on the highest confirmed or estimated limit for the month, excluding inbound shipments still in transit.
Recommended Actions
- →Log into Seller Central > Inventory > Manage FBA Inventory > Capacity Dashboard to view your monthly cubic‑foot limit.
- →Recalculate each SKU’s volume (e.g., 12"×12"×2" = 0.016 ft³) and adjust purchase orders so projected on‑hand volume stays below the announced limit.
- →If more space is needed, go to Seller Central > Inventory > Capacity Requests, submit a reservation‑fee bid per m³, and monitor performance credits.
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