Amazon's FBA Capacity limits are determined based on storage per cubic feet and are in place to manage unexpected surges in demand and supply chain disruptions, allowing for efficient fulfillment and faster delivery of products to customers. These limits apply to various storage types, including standard-size, oversize, extra-large, apparel, footwear, flammable, and aerosol.
HOW CAPACITY LIMITS ARE SET
Each storage type has one capacity limit per month, with individual selling accounts having a fixed limit of 15 cubic feet. New professional selling accounts with less than 39 weeks active in FBA do not have FBA capacity limits to establish their sales record without restrictions. Professional selling accounts with more than 39 weeks active in FBA receive capacity limits based on their IPI score and sales performance. Higher IPI scores result in higher capacity limits, adjusted for sales volume and available capacity. FBA capacity limits consider inventory on hand and shipments on the way to fulfillment centers.
To learn more about FBA Capacity Limits, go to this link: https://sellercentral.amazon.com/help/hub/reference/GAFNWEYTJUV2GBFC
To increase capacity limit per storage type:
1. Navigate to Inventory → Shipments.
2. Click on capacity Monitor.
3. In the "Need to increase the capacity limit?" section, click the link "Go to Capacity Manager".
4. Select the storage type for which you want to increase the capacity limit and click the "Create new request" button.
5. Fill in the capacity increase period, requested volume, maximum reservation fee, and expiration date of the request in the Capacity limit increase request.
a. Set Maximum Reservation Fee
Download Reservation Fees History.
Specify the maximum reservation fee you are willing to pay for the increased inventory limits.
This fee will depend on the historical fees for similar requests, which can fluctuate based on demand.
b. Utilize the Download Calculator Tool
Download Calculator Tool.
Input your estimated sales for the target period to calculate potential performance credits.
Use the estimated sales to assess the potential performance credits from Amazon based on your capacity increase.
This will help determine the reservation fee per unit or cubic foot.
c. Set Expiration Date for Request
Decide on an expiration date for your request based on when you expect to sell through the additional inventory.
Ensure the expiration date allows enough time to create the necessary shipments.
6. Submit the Request
a. Review all the information entered, ensuring it reflects your needs accurately.
b. Submit the capacity increase request.
7. Monitor Approval and Costs
a. After submission, monitor the status of your request in Seller Central.
b. Be prepared for fluctuations in costs based on competition for space, especially during peak periods.
8. Review and Adjust as Necessary
a. If your sales estimates change or if you receive feedback on your request, be prepared to adjust your request accordingly.
Conclusion
By following this SOP, Amazon sellers can strategically manage their FBA capacity limits, ensuring they can accommodate increased inventory during peak sales periods while effectively controlling costs. Regularly review historical data and adjust requests to stay competitive in securing necessary storage space.
Email Template
Amazon
We are submitting a request to increase the restock limit for standard storage, from 1663 units to 5000 units. Our current IPI score stands at 676, and with our current storage limits, we are unable to fulfill the total number of units recommended by Amazon for shipment to FBA.
* Is the increase request for the current quarter or next quarter? Current Quarter
* The type of increase (Standard/Oversize/Footwear/Apparel): Standard
* Desired inventory limits (units): 5000
* Existing storage limit (units): 1663
* We need to increase the Restock limit because, with our current sales velocity, we will soon run out of stock. This will prevent us from meeting the current customer demand and negatively affect our sales.
Thanks,
