As the fourth-quarter shopping season approaches, Amazon sellers are preparing for what should be their most profitable period. However, many have encountered an unexpected obstacle: strict limitations on FBA (Fulfillment by Amazon) warehouse capacity.
Numerous sellers report significant reductions in their storage allocations, ranging from hundreds to tens of thousands of units. This has disrupted inventory plans, with some shipments already en route to warehouses that can no longer accommodate them.
Faced with this capacity crisis, sellers are exploring various solutions to maintain their seasonal sales momentum. Here are several practical strategies to overcome warehouse limitations.
1. Traditional Approach: Requesting Capacity Increases Through Amazon Managers
Seeking assistance from Amazon account managers remains the primary solution for many sellers, though success isn't guaranteed.
Paid Account Managers
Sellers with premium Amazon accounts have access to managers who may allocate limited capacity increases. However, approval rates have declined recently, and granted amounts are typically modest.
AGL (Amazon Global Logistics) Managers
These managers receive numerous requests, making approvals challenging. Sellers using AGL's shipping services might find opportunities by creating then canceling shipments to maintain a fixed allocation. Maintaining good communication with AGL managers is crucial to avoid penalties.
Transparency Program Managers
This program offers relatively higher capacity increases, with weekly application opportunities. Sellers can enroll specific listings in the brand owner reporting system to qualify without purchasing large quantities of transparency labels.
2. Alternative Solution: Amazon Warehousing & Distribution (AWD)
Amazon's AWD program provides supplementary storage capacity outside FBA warehouses, automatically replenishing FBA stock as needed.
Ideal Use Cases for AWD:
- New product testing: Store bulk inventory in AWD while testing market response with small FBA allocations
- Seasonal products: Pre-stock AWD before peak periods to prevent FBA congestion
- Slow-moving inventory: Transfer stagnant products to AWD to free FBA space
- Emergency backup: Use AWD when FBA warehouses encounter operational issues
Pricing and Restrictions
AWD charges storage and handling fees, though Amazon reduced these costs in August 2022. The program excludes perishables, hazardous materials, unclassified items, heavy/bulky products, and specific categories like apparel, jewelry, and food items.
3. Direct Approach: Submitting Support Requests
For sellers preferring straightforward methods, submitting a support case through Seller Central (under "Get Support > Other FBA Issue") may yield results. Some sellers report higher success rates when submitting English-language requests during evening hours.
With careful planning and strategic use of available options, sellers can navigate Amazon's capacity constraints and capitalize on the critical holiday shopping season.