Amazon's fulfillment center policies have long been a critical component of seller operations. Recent developments, including mass layoffs and logistical challenges during peak shopping seasons, have brought FBA (Fulfillment by Amazon) storage capacity issues into sharp focus. In response to sellers' urgent demands for more storage space, Amazon is reportedly preparing to introduce a paid capacity policy while restructuring replenishment limits and storage volume allocations.
New Paid Storage Capacity Model
Industry sources indicate Amazon may soon implement a paid storage capacity program, with an official announcement expected on January 10 and implementation scheduled for March 1. Although unconfirmed by Amazon, this potential policy change has generated significant discussion among sellers.
The proposed system would allow sellers to purchase additional FBA storage capacity during peak seasons, ensuring timely inventory replenishment and sales continuity. This follows Amazon's previous testing of a Storage Capacity Limit Manager program in the US marketplace.
The existing pilot program, designed for sellers with Inventory Performance Index (IPI) scores below 400, operates through a bidding mechanism:
- Bidding Process: Sellers specify desired capacity increases and submit maximum reservation fee bids. Amazon charges all approved applicants the same rate for that week's allocation.
- Dynamic Pricing: If subsequent approvals occur at lower rates, previously approved sellers receive fee adjustments.
- Performance Credits: Sales from additional capacity generate credits that may fully offset reservation fees when accumulated sufficiently.
Market observers suggest the new paid capacity system may replace or significantly modify this existing expansion program.
Unified Storage Limits Implementation
Beyond the paid capacity model, Amazon appears poised to consolidate replenishment restrictions and storage volume limits into a single FBA Storage Limit metric. This unified approach would establish individual limits for each storage type, with several operational changes:
- IPI assessments shifting from quarterly to monthly evaluations
- Storage limits updating monthly with one-month validity periods
- Provision of two-month projected capacity estimates for improved planning
- Detailed capacity categorization by inventory status and source (initial allocation vs. supplemental capacity)
- Monthly allowance for up to five additional capacity requests through the Storage Limit Manager
Potential Marketplace Impacts
These policy adjustments could significantly reshape seller operations:
1. Increased Operational Costs: The paid capacity model may disproportionately affect smaller sellers with limited capital reserves.
2. Inventory Management Complexity: More frequent IPI evaluations demand sophisticated inventory optimization to avoid penalties from overstocking or stagnant inventory.
3. Competitive Landscape Shifts: Capital-rich sellers may leverage purchased capacity to strengthen market positions, potentially accelerating marketplace consolidation.
4. Operational Precision Requirements: Success will increasingly depend on data-driven inventory management, product mix optimization, and conversion rate improvements.
Strategic Recommendations for Sellers
Market participants should consider several adaptive measures:
- Monitor official policy announcements for implementation details
- Enhance inventory turnover through product assortment optimization and dynamic pricing
- Prioritize IPI score improvements via inventory health metrics and return rate reduction
- Strategically utilize the Storage Limit Manager while evaluating cost-benefit tradeoffs
- Diversify fulfillment options through third-party logistics providers where feasible
These FBA policy changes reflect broader e-commerce evolution trends. Successful adaptation will require operational agility and strategic inventory management as the marketplace continues to mature.