How To Avoid Business Disruption Due To The New FBA Capacity Changes?

How To Avoid Business Disruption Due To The New FBA Capacity Changes?

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From March 1st, Amazon has removed the weekly restocking and quarterly storage volume limits.

They are replaced with a single monthly capacity limit.

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But how to avoid business disruption due to the new FBA Capacity changes?

Here are 2 steps that Amazon Strategic Account Services (SAS) managers recommend:

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Review your capacity limits through Capacity Monitor in your FBA dashboard.

Your limits depend on several factors.

• Inventory Performance Index (IPI),
  
  
• Sales forecasts for your ASINs,
  
  
• Shipment lead time and
  
  
• Fulfillment center capacity

Regular checking on this data will help you and your Customer success manager to make necessary adjustments.

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Maintain a healthy inventory level.

Overage fees help prevent excessive inventory levels. They are calculated based on the highest estimated or confirmed limit Amazon provides for a particular period.

You will see them apply if your on-hand inventory in Amazon’s fulfillment centers exceeds your capacity limit. Open shipments are not included in the calculations.

The image below shows a NO limit result usually happening for new FBA Sellers (< 9 months). Limits will be updated once they start having sales.