Amazon Shifts FBA Inventory Management From Weekly Restock Limits to Monthly Capacity System
Amazon is retiring weekly FBA restock caps and introducing a monthly capacity allocation measured in cubic meters, with limits published in the third full week of each month. Sellers receive a confirmed limit for the next month and estimates for the following two months, and can bid for extra space at fees such as $0.45 / m³.
Overview
Amazon is retiring the weekly restock limits that have governed Fulfillment by Amazon (FBA) inventory for years and replacing them with a monthly capacity allocation system. The new model, announced for rollout this quarter, measures space in cubic meters, provides three‑month visibility, and adds a fee‑based reservation program for extra storage. Sellers who rely on predictable replenishment cycles should adjust their planning now to avoid disruptions.
Key Points
- Monthly limits replace weekly caps — Inventory allowances are set once per month for each storage type, removing the need to re‑calculate every seven days.
- Three‑month rolling forecast — Amazon publishes a confirmed limit for the next month and estimated limits for the following two months, giving sellers a longer planning horizon.
- Cubic‑meter measurement — Limits are calculated on volume rather than unit count, aligning space allocation with the actual footprint of each product.
- Capacity reservation program — Sellers can bid for additional cubic meters beyond their base allocation; the highest bids receive the extra space.
- Predictable release schedule — Monthly limits appear during the third full week of each calendar month on the FBA dashboard and are also sent by email.
How the New Monthly Capacity System Works
- Limit calculation — Amazon evaluates each seller’s Inventory Performance Index (IPI), recent sell‑through rates, forecasted demand for individual ASINs, and overall warehouse capacity. For example, a seller with an IPI of 85 may receive a base allocation of 8 m³ for standard‑size inventory, while a seller with an IPI of 60 might be assigned only 4 m³.
- Volume‑based reporting — The FBA dashboard now displays the total cubic meters used and the remaining capacity. A compact product line such as phone cases (0.001 m³ per unit) could translate to a limit of roughly 8,000 units within an 8 m³ allocation, whereas a single piece of furniture occupying 0.5 m³ would consume half the monthly quota.
- Three‑month visibility — In the third week of the month, Amazon posts the confirmed limit for the upcoming month (e.g., 8 m³ for May) and provides estimates for the next two months (e.g., 7.5 m³ for June, 7 m³ for July). Sellers can use these figures to schedule shipments and negotiate with suppliers.
Analysis & Recommendations
Why This Matters
Monthly limits give a three‑month horizon, letting sellers consolidate shipments and negotiate freight, but also require tracking volume instead of unit counts. The reservation bidding program adds a cost‑recoverable way to secure extra space during peaks like Prime Day, directly influencing cash flow and sell‑through rates.
Key Takeaways
- Weekly restock limits are replaced by a monthly capacity system measured in cubic meters.
- Limits are released during the third full week of each calendar month and include a confirmed next‑month figure plus two‑month estimates.
- Sellers can bid for additional space; example fee is $0.45 / m³, with higher bids receiving priority.
- Performance credit refunds the reservation fee proportionally to sold units (e.g., 100 % refund if all reserved inventory sells).
Recommended Actions
- →Log in to Seller Central > Inventory > Manage FBA Inventory and review the new Monthly Capacity tab when limits are posted in the third week of the...
- →Calculate current inventory volume in m³ and compare it to the allocated limit; adjust purchase orders in your procurement calendar accordingly.
- →If expecting a surge, navigate to Seller Central > Inventory > Capacity Reservation, submit a bid (e.g., $0.60 / m³) for the needed extra cubic met...
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