Cross-border e-commerce sellers frequently grapple with inventory challenges - from stockpiles of unsold goods to unpredictable storage fees. Effective March 1, 2023, Amazon implemented significant adjustments to its Fulfillment by Amazon (FBA) storage management system, targeting these operational hurdles.
Key Change: Unified Storage Capacity Management
The policy revision consolidates previous replenishment limits and quarterly storage restrictions into a single Amazon FBA storage capacity metric. This unified approach provides sellers with comprehensive storage allowances determining both inbound shipments to Amazon fulfillment centers and total inventory storage volumes. The updated policy applies to Amazon's US, UK, France, Germany, Italy, and Spain marketplaces.
Policy Comparison: Streamlined and Predictable
The restructured system introduces several notable improvements:
- Simplified Operations: Elimination of separate replenishment restrictions reduces administrative complexity, allowing sellers to focus on a single storage metric.
- Monthly IPI Evaluations: Inventory Performance Index (IPI) assessments now occur monthly rather than quarterly, with corresponding storage capacity updates. This enables more responsive inventory adjustments.
- Enhanced Forecasting: Amazon now provides confirmed capacity for the upcoming month plus two-month projections, improving inventory planning capabilities.
- Flexible Capacity Requests: Sellers may submit up to five monthly applications for additional storage through the Capacity Limit Manager, addressing peak demand periods.
Monitoring Storage Capacity
Sellers can track their storage metrics through multiple channels:
- The Inventory Performance dashboard displays capacity limits, utilization rates, and updates
- The Send to Amazon (STA) page features a storage metrics section
- Automated email notifications communicate capacity adjustments
Amazon typically announces capacity allocations during the third week of each month, confirming next-month allowances while providing provisional estimates for subsequent periods.
Capacity Allocation Factors
Storage capacity distribution considers multiple variables:
- Inventory Performance Index (IPI) scores
- Historical and projected sales volumes
- Inventory transit timelines to fulfillment centers
- Product categories and seasonal demand patterns
Policy Variations by Account Type
New professional seller accounts (active in FBA for under 39 weeks) remain exempt from storage limits. Established accounts receive capacity allocations based on IPI scores and sales performance.
Requesting Additional Capacity
The Capacity Manager portal enables sellers to petition for expanded storage when facing supply constraints. The process involves:
- Accessing the Capacity Manager in Seller Central
- Specifying required additional volume and justification
- Awaiting Amazon's review decision
Important Note: Allocated storage capacities remain non-transferable between different storage categories.
Strategic Recommendations
Sellers should consider these operational adjustments:
- Prioritize IPI score optimization through improved inventory turnover and reduction of stagnant stock
- Enhance demand forecasting using Amazon's analytical tools
- Proactively utilize the expanded capacity request system during high-demand periods
- Monitor policy updates for continued compliance
These storage policy revisions reflect Amazon's ongoing efforts to enhance logistical efficiency while providing sellers with greater operational predictability in competitive cross-border e-commerce markets.