Imagine carefully selecting your best-selling products, ready to ship them in bulk to Amazon's warehouses ahead of peak sales season—only to be told storage space is full. Want more capacity? Pay up. This isn't science fiction but an emerging reality for Amazon sellers as the e-commerce giant reportedly prepares to implement paid storage capacity purchases.
I. Policy Shift: From Quantity Limits to Volume Restrictions
Amazon may replace its current storage quantity limits with volumetric restrictions, requiring sellers to maximize every cubic inch of space. Early framework displays in seller portals suggest this change is imminent. Existing capacity expansion services could face cancellation or stricter approval processes, exacerbating storage shortages.
II. IPI Evaluations: Monthly Checks Intensify Inventory Pressure
More critically, Amazon may increase Inventory Performance Index (IPI) assessments to monthly intervals. Sellers must constantly monitor scores and improve turnover rates, as inventory beyond three months' allowance likely requires paid capacity expansions—potentially triggering substantial storage fees for non-compliance.
III. Official Stance: New Accounts May Benefit
An Amazon representative indicated the policy will evaluate sellers' IPI scores, account health (including compliance records and new product performance), applying only to excess capacity. Some sellers speculate new accounts could receive preferential treatment, while established sellers must demonstrate performance to secure space.
IV. Policy Details: Storage Limit Manager and In-Transit Stock
Leaked documents reveal post-March 1 changes replacing replenishment limits with volumetric storage caps. The system will display confirmed next-month allocations and two-month projections. Sellers exceeding limits can request additional capacity (maximum five monthly attempts) via the Storage Limit Manager.
Notably, in-transit inventory will now count toward limits. Shipments projecting overages will face creation blocks and excess storage fees—requiring sellers to factor pipeline inventory into planning.
V. Capacity Reductions: Even High IPI Scores Offer No Guarantee
Storage cuts have escalated post-holiday seasons, with reductions ranging from hundreds to tens of thousands of units. While linked to IPI performance, even compliant sellers face unpredictable capacity slashes—creating widespread operational uncertainty.
VI. Risky Workarounds: Policy Violations Carry Severe Penalties
Some sellers explore unauthorized "black hat" expansions or unreliable third-party warehouses, risking account suspensions for violating Amazon's Direct Shipping Policy. Prohibited actions include:
- Including competitor platform information in packaging
- Direct-shipping orders from retailers like Walmart or eBay to Amazon customers
- Using competitor-branded packaging materials
Violations typically trigger 72-hour warnings or immediate account deactivations.
VII. Addressing Policy Violations: Critical Response Steps
Sellers receiving warnings should:
- Identify specific violation causes and affected order numbers
- Review packing slips, invoices, and external packaging for unauthorized contact details
- Submit comprehensive corrective plans (POA) documenting root causes, supporting evidence, and preventive measures
VIII. Account Health Assurance (AHA): New Protection Mechanism
Amazon's recently launched Account Health Assurance (AHA) program introduces seller safeguards:
- Violation severity tiering (critical/high/medium/low for issues like review manipulation)
- Real-time account "fuel gauge" displaying suspension risk levels
- Pre-suspension communication and appeal assistance from Amazon
IX. Compliance Imperative: The Foundation of Seller Survival
Amazon's intensified compliance focus demands rigorous policy adherence. Sellers must monitor platform updates while maintaining meticulous operational practices to avoid infractions.
X. Seller Strategies: Managing Peak Season Capacity
Experienced sellers recommend:
- Persistent official capacity requests with supporting documentation (sales trends, ranking data)
- Prioritizing inventory turnover and liquidating stagnant stock
- Strategic allocation focusing on proven seasonal performers
- Temporary third-party warehouse solutions
- Optimizing logistics partnerships for accelerated fulfillment