Amazon’s April 29th communication with the Carbon6 team revealed a significant update: U.S. FBA capacity limits for May and June 2025 are being adjusted. While FBA sellers are used to monthly updates, this particular shift comes at a critical time—just ahead of Prime Day and the mid-year promotional season.
Here’s what you need to know about these changes, why they matter, and the practical steps you can take to protect your top-performing inventory and make the most of your available FBA space.
What’s Changing: FBA Capacity Limits for May & June 2025
Amazon has revised how it calculates FBA capacity, now basing limits on approximately 5 months of sales volume, down from the previous 6-month standard. Limits are determined by a combination of:
- Inventory Performance Index (IPI) score
- Sales history and forecasts
- Promotion plans and lead times
- Product mix
What’s included in your utilization?
Both on-hand inventory and open shipments. If you’re at or near your capacity, you could be blocked from creating new shipments in “Send to Amazon.”
Impacts vary widely:
Some sellers experienced minimal impact, while others saw capacity reduced by up to 75% compared to their April limits.
Are We Seeing a Return to Restock Limits?
The new capacity structure is raising questions about whether Amazon is reintroducing restock-style restrictions seen during the 2020–2021 pandemic.
- The focus on catalog-wide inventory levels means excess inventory in one ASIN can restrict your ability to restock fast-movers.
- Sellers are even reporting error messages referencing “COVID,” adding weight to the theory that older algorithms may be resurfacing.
What This Means for Prime Day 2025 Planning
We’re potentially seeing a hybrid inventory system emerge:
- Account-wide capacity limits
- SKU-level inventory thresholds
- Pay-to-play space expansion via Capacity Manager
- Off-site buffer storage with Amazon Warehousing & Distribution (AWD)
Historically, Amazon tightens capacity ahead of major sales periods like Prime Day and Q4. This change may reflect a more permanent shift toward tighter control and dynamic allocation of FBA space.
How Sellers Are Reacting
Sudden, Severe Reductions
Some sellers were caught off guard by 70–75% cuts in capacity, leaving them over limit just days before May began.
Revised Confirmations
Several reported receiving confirmed capacity figures that were later changed—causing major disruptions to inventory planning.
Penalized for Following Advice
Sellers who had followed Amazon’s earlier recommendations to send inventory early are now being hit with removal fees to comply with new limits.
8 Strategic Moves to Navigate the 2025 Capacity Crunch
1. Audit Inventory Performance
Pinpoint slow-moving SKUs using the Inventory Performance Dashboard. These ASINs are top candidates for removal or transition to AWD.
2. Move Excess Inventory Quickly
Use Amazon DSP and Sponsored Ads to drive demand for aging stock. Promote bundles, discounts, or “Prime-eligible” benefits to accelerate sell-through.
3. Request Additional Capacity Proactively
Use Capacity Manager to submit requests now—before Prime Day pressure builds. A strong bid-to-value ratio increases your approval chances.
4. Leverage Amazon Warehousing & Distribution (AWD)
AWD can help you offload slower-moving or seasonal products, while keeping core SKUs flowing through FBA uninterrupted.
5. Rethink Shipment Cadence
Shift from large, infrequent shipments to smaller, more frequent replenishments. Prioritize fast movers to stay lean.
6. Communicate Across Teams and Partners
Inform your 3PLs, prep centers, and marketing teams about capacity changes to coordinate shipping and promotion schedules accordingly.
7. Recover Lost Revenue via FBA Reimbursements
Use services like Seller Investigators to identify and recover revenue lost to FBA errors. These recovered funds can help offset slowdowns in inventory flow.
8. Implement Robust Inventory Management Tools
Amazon’s inbuilt inventory management tools can help track aged inventory, forecast demand, and sync marketing plans with restocking to ensure smoother operations.
Final Thoughts
Amazon’s 2025 FBA capacity changes mark a shift toward more dynamic, performance-based storage allocation. Whether these changes are temporary or a return to past restrictions, sellers need to act quickly to protect critical ASINs, avoid overage fees, and stay Prime Day-ready.
By staying informed, being proactive with tools like Capacity Manager and AWD, and adjusting your inventory and marketing strategies now, you’ll be in a strong position to succeed—even with the limitations in place. Contact our Amazon management consultants today ! We will help you navigate through these tough times.
