Updated: June 4, 2025: Amazon has confirmed updates to FBA capacity limits for June and July 2025, continuing the monthly adjustments that began affecting sellers in May. While capacity adjustments are a known part of FBA operations, this latest update carries important strategic implications for sellers preparing for Prime Day in July.

Below, we break down what’s changed, why it matters, and how sellers can make smart adjustments to protect their top-performing inventory and maximize capacity.

Key June Updates

Capacity Limits Remain Tightened

  • Amazon has maintained FBA capacity at 5 months of expected sales volume for June and July 2025 (reduced from 6 months as noted in May)
  • Sellers who experienced cuts of up to 75% in May may continue to face restricted capacity

Performance-Driven Restrictions Continue

  • Capacity is influenced by IPI score, sales velocity, shipment timing, and catalog efficiency
  • Slow-moving inventory can block replenishment of best sellers

Prime Day Deadlines Are Set

  • June 9, 2025: Deadline for minimal shipment splits option
  • June 18, 2025: Deadline for Amazon-optimized shipment splits option
  • Schedule appointments at least 7 days before these dates

No Overage Fees (But Still Restrictive)

  • Overage fees eliminated since July 2024
  • However, exceeding limits still blocks new shipment creation

The Core Update: FBA Capacity Limits for June & July 2025

  • FBA capacity limits reflect roughly 5 months of sales volume, based on account performance and product mix
  • Utilization includes on-hand inventory and open shipments—meaning sellers at or near their limit may be blocked from creating new shipments in “Send to Amazon”
  • Early Release lets sellers send inventory early—up to the amount approved in a capacity increase. For example, if you’re granted an additional 3,000 cu ft for August, you can ship it in July to maximize your reserved space.
  • Limits vary by seller and are determined by factors like:
    • Amazon Inventory Performance Index (IPI) score
    • Historical and forecasted sales
    • Planned deals and promotions
    • Shipment lead times

Why These Changes? Amazon states they’ve noticed “higher than usual inventory levels” with some sellers sending more products than needed for replenishment. This aims to help maintain healthy stock levels across the network.

A Hybrid System in Practice

While the May update hinted at a possible return to ASIN-level restrictions — something sellers are still experiencing alongside account-wide caps — the current system remains focused on overall account capacity with performance-based allocations. The 5-month inventory limit across your whole catalog means too much slow-moving inventory continues to block your ability to restock best sellers.

Capacity Limits and Prime Day Planning

The tightened capacity ahead of Prime Day creates specific challenges:

  • Limited ability to build inventory for the sales event
  • Need for precise forecasting and timing
  • Competition for Capacity Manager reservations
PRO TIP

These capacity limits aren’t just about space—they’re about performance. Sluggish SKUs hurt your total capacity, making it harder to restock top performers, especially critical before Prime Day.

Managing the Continued Restrictions

Many sellers who faced sudden reductions in May are now forced to adapt to the “new normal” of tighter capacity limits:

Previously “Confirmed” Limits May Change

  • Capacity limits update monthly
  • Plan for potential adjustments even with confirmed limits

Following Amazon’s Guidance

  • Amazon recommends requesting capacity increases via Capacity Manager if more space is needed 
  • AWD provides bulk storage solutions
  • Automatic replenishment through AWD eliminates several fees

8 Proactive Steps to Maximize Your Capacity

1. Audit Inventory Performance

Identify SKUs that are underperforming or slow to move—these are the first candidates for removal or AWD transition. Use Amazon’s Inventory Performance Dashboard to pinpoint slow sellers and monitor your IPI score.

2. Clear Excess Inventory Before Prime Day

With deadlines approaching, quickly move slow inventory to free capacity for Prime Day winners. Consider promotions, deals, or removal orders.

3. Submit Additional Capacity Requests Now

  • June requests were due by May 29 at 5PM PST
  • July and August requests currently open
  • Early release provided one month before requested period if granted
  • No upfront payment required. Learn more about Capacity Reservation cost structure in our latest Amazon fees whitepaper. 

4. Adjust Shipping Lead Times in Seller Central

Customize your replenishment settings on the Restock Inventory page to signal to Amazon when you’ll need to create your FBA Shipping labels to ensure you can get your inventory shipped out on time.  

5. Integrate AWD into Your Fulfillment Strategy

  • AWD inventory doesn’t count toward FBA capacity limits
  • No FBA inbound placement fees (included in AWD pricing)
  • Automatic replenishment option eliminates aged inventory surcharges, low-inventory fees, and storage utilization surcharges
  • Use for seasonal items or longer-tail SKUs – low-selling, niche products with steady demand

6. Adjust Shipment and Replenishment Cadence

  • Focus on fast movers
  • Consider more frequent, smaller replenishment cycles
  • Account for shipment cutoff dates in planning

7. Communicate Internally and With Partners

Notify 3PLs or prep centers of capacity constraints to plan for shipping schedule adjustments. Align marketing and sales plans to increase sell-through on capacity-blocking SKUs.

8. Implement Effective Inventory Systems

Track aged inventory, identify slow sellers, adjust replenishment frequency, and incorporate marketing efforts into your forecasting system to stay responsive to monthly capacity changes.

Managing FBA Capacity Limits with Clarity and Control

With Prime Day approaching and capacity limits holding at 5 months, strategic inventory management is critical.

Key takeaways:

  • Monitor IPI score and sales velocity continuously
  • Clear out aging or stranded inventory before Prime Day
  • Submit Capacity Manager requests before deadlines
  • Consider AWD for bulk storage needs
  • Plan Prime Day shipments to meet June 9 or 18 deadlines

The shift from 6 to 5 months of capacity represents a new baseline sellers must adapt to. While the elimination of overage fees provides some relief, the blocking of new shipments when over capacity makes proactive management essential.

Sellers know that volatility is part of the game—but it’s preparation, not panic, that turns challenges into long-term opportunities. Check your capacity limits now in the Capacity Manager and take action to optimize your inventory mix before Prime Day arrives.