Amazon FBA Logistics launches new storage management policy, effective March 1

Amazon FBA Logistics launched a new storage management policy, which took effect on March 1

July 7, 2023

Table of Contents
1/ Amazon Logistics has launched a major warehouse capacity!
2/ How to check Amazon Logistics storage capacity?
3/ Not enough storage?Apply now for more!
Frequently asked questions

Over the past two years, Amazon has made continuous investments to nearly double its delivery capacity. To adapt to changing inventory management models, Amazon has incorporated a new inventory management policy to provide sellers with greater stability and predictability. What kind of adjustments have been made this time around?This article has drawn out the key points for you. Take a closer look, it's not difficult at all.

Amazon Logistics's storage capacity will be officially launched on March 1, 2023 (Pacific Time)! The original restocking limits and quarterly storage limits will be replaced by unified Amazon Logistics storage capacity, which determines sellers' shipping and storage limits, and can help Amazon manage unexpected surges in storage demand to efficiently operate the Amazon Delivery Network and deliver sellers' products to buyers more quickly.

Applicable sites

US station, UK station, France station, German station, Italian station, and Spanish station

New process, simple and efficient

Four major changes!Improve the stability of inventory management

Simplify!Remove additional restocking restrictions

Streamline the experience, combine restocking limits and storage limits, and use a single FBA storage quota. A single limit for each storage type will determine how much inventory a seller can send and store to Amazon fulfillment centers.

Flexibility!IPI assessment changed to once a month

The IPI assessment was changed to once a month, and the corresponding limit was changed to be updated every month. Each quota is valid for one month.

Visualize!3-month storage limit forecast

In addition to the storage capacity already determined for next month, Amazon will also provide estimated storage capacity for the next two months. Additionally, sellers can segment storage types by inventory status, storage source (initial capacity or requested additional capacity).

Expandable!Additional storage can be requested

When storage capacity is insufficient, sellers can request additional storage through the Storage Limit Manager. Sellers can apply up to 5 times per month.

Comparison list before and after the update

Sellers can check capacity limits and capacity usage and updates in the Inventory Performance Dashboard and the Storage Dashboard at the bottom of the Send to Amazon (STA) page, and also receive an email notification.

► At the top, you can select the storage type using the tab;
► On the left, you can view the current storage usage by inventory status (such as in-stock inventory and in-transit inventory);
►On the right, you can view the confirmed storage capacity for the next month and the estimated storage capacity for the next two months.

Click the link below to open it in your browser to view the storage capacity:
https://sellercentral.amazon.com/inventory-storage/storage-request/limit-increase

Capacity quotas are announced during the week beginning of the third week of every month, and announced once a month. Within this time period, Amazon will confirm the seller's storage capacity for the next month, adjust and communicate the estimated storage capacity limit for the next two months.

For example, on February 15, Amazon will:

✓ Confirm the storage capacity quota from March 1 to 31;
✓ Readjust the estimated storage capacity quota from April 1 to 30;
✓ Release the estimated storage capacity limits for May 1 to 31.

Amazon Logistics storage capacity is determined based on the seller's Inventory Performance Index (IPI) score, estimated sales volume, the time it takes for the shipment to arrive, and other factors.

New professional selling account (Amazon Logistics active for less than 39 weeks)

Not subject to Amazon Logistics storage capacity limits.
This allows sellers to refresh your Fulfilment by Amazon (FBA) sales records without restrictions, so Amazon can determine how much capacity your Fulfilment by Amazon (FBA) business requires.

I have a professional selling account (Amazon Logistics has been active for more than 39 weeks)

Storage capacity credits will be obtained based on their IPI score and sales performance.
Sellers with consistently high IPI scores receive higher storage capacity credits, which are adjusted based on sales volume and available capacity. The Amazon Logistics storage capacity quota will calculate the seller's Amazon inventory and in-transit inventory being shipped to Amazon fulfillment centers in cubic feet.

* For individual selling accounts, the capacity limit is 15 cubic feet; this limit will not change.

If a seller's sales and inventory performance exceeds Amazon's forecasts, the estimated capacity limit may increase; if overall seller demand storage capacity is greater than expected, then each seller's storage capacity quota may decrease.

A seller's monthly storage capacity consists of two parts:

① Amazon specifies storage capacity limits for sellers during the month;
② Additional storage capacity requested and approved by the seller through the Storage Capacity Manager.

If sellers want to increase storage space for purchased products and are confident that this batch of products will be well received by buyers, they can request additional storage space through the Storage Capacity Manager to improve the seller's sales performance during the peak season.

Storage capacity manager operation diagram

With this tool, sellers can apply for more FBA storage space for products with strong sales volume and earn performance points through sales generated by this portion of space, thereby deducting storage space fees.

Lowest reservation fee guarantee

For reservation fees, Amazon has a minimum reservation fee guarantee: Amazon will charge the same reservation fee per cubic foot for other sellers who apply for approval in the same week. As a result, if other sellers who apply later are approved for additional storage space at a lower unit reservation fee, your reservation fee will also be reduced.

Sellers can request additional storage capacity for any month over the next three months, up to five times each month.

Click the article 👉 to learn about the steps and examples of using the Storage Capacity Manager

❓ What are the types of warehouses?

Amazon Logistics storage capacity is determined based on storage type: standard-size, oversized, clothing or footwear products, oversized. Amazon accurately classifies each product as a storage type based on weight and size, and sellers are unable to adjust the storage type. To check the storage type and volume of the product, please visit the “Amazon Logistics Inventory” page.

Note: Flammables and aerosol storage limit adjustments are handled separately from other storage types. Click the link below to open it in your browser to learn more about the “Amazon Logistics Dangerous Goods Program” 👇
https://sellercentral.amazon.com/help/hub/reference/GZLZBQ7W6QZRKWWK

❓ I haven't used up the capacity of my standard size, can I exchange it for other storage types?

It's not possible. The stocks assigned to you are not interchangeable between storage types.

❓ Will Multi-Channel Fulfilment (MCF) orders affect capacity limits?

Multi-Channel Fulfilment orders are included in the calculation of the seller's past and expected sales volume, and this data will be used to calculate the seller's storage capacity quota. Sellers can check what capacity comes from Multi-Channel Fulfilment sales in the storage dashboard.

❓ How to optimize storage capacity and inventory management?

To maximize your storage capacity quota, Amazon recommends that you:
1. Cancel shipments that are not intended to be placed in the warehouse. Shipments that have already been created count towards your total capacity usage, so if you no longer plan to take these shipments, close them in Send to Amazon (STA).
2. Increase the sell-through rate of Fulfilment by Amazon (FBA) inventory. Selling and cleaning up inventory can help you free up storage space for new products. Amazon has summarized the four-step inventory sales and clean-up method for you to help you strengthen inventory turnover in the four stages of market expansion, promotion sales, product transfer, and excess clearance.
Click the article 👉 to learn more about the four-step inventory sales and clean-up method 3. Follow restocking recommendations. Amazon provides you with restock recommendations on the Replenish Inventory page, and we recommend that you ensure that you are sending no more than the recommended amount of inventory. Click the link below to open it in your browser and go to the restock page 👇
https://sellercentral.amazon.com/restockinventory/recommendations?ref=fbacentral_nav_fba

Have you thoroughly enjoyed the updated Amazon Logistics storage capacity policy?! To make big profits around the world, let's start with logistics and warehousing!If you have any questions, please leave us a message at the end of the post~

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