Amazon 2025 FBA Capacity Limits: What Sellers Need to Know (and Do Now)

In its April 29th communication with the Carbon6 team,  Amazon confirmed that the US FBA capacity limits for May and June 2025 are being updated.

While monthly adjustments to capacity are a known part of FBA operations, this particular update carries some important strategic implications for sellers preparing for mid-year promotions–and especially those looking ahead to 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.

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

• FBA capacity limits now reflect roughly 5 months of sales volume (previously 6 months), 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.”
• 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
• Not all sellers were impacted equally. Some saw minimal or no changes, while others experienced steep reductions—as high as 75% —from their April allocations. More on that later.
• Sellers may request more space via the Capacity Manager tool, where additional storage is granted based on availability and reservation bids.

View your capacity limits now in the FBA Dashboard.

A New Version of an Old Algorithm?

While the limits themselves are expected, their structure echoes familiar patterns–particularly the restock limits many sellers navigated in previous years. 

Amazon’s update points to a 5-month inventory limit across your whole catalog. This means too much slow-moving inventory can block your ability to restock best sellers—just like in the old restock limit system.

Some sellers have also reportedly received emails referencing “COVID” on them, hinting at the return of older algorithms.

Capacity Limits, Restock Limits, & Prime Day

Sellers have long seen capacity tighten ahead of high-traffic periods like Prime Day and Q4.

But what began as broad restock limits in 2021 has possibly evolved into a hybrid model that now includes both account-wide capacity ceilings and SKU-level restrictions, creating new challenges for inventory planning. 

• 2020: ASIN-level restock limits were introduced, restricting products from being sent into FBA based on their individual performance and stock levels.
• 2021: Amazon removed ASIN-level restrictions and implemented account-level restock limits. They varied by marketplace and storage type such as a single limit for all of Standard-Size products in the US.
• 2023–2024: Amazon added Capacity Manager and Amazon Warehousing & Distribution (AWD) as workaround tools.
• April 2025: Potential overlap between the updated May/June capacity limits and restock limits. We may be seeing signs of a hybrid model, with account-wide and ASIN-level restrictions returning, supplemented by pay-to-play capacity increase requests via Capacity Manager and upstream AWD storage.
  
  According to strategist James McConnell Jr., he began noticing restock-like errors in April 2025, including “You already have high days of supply for this ASIN…” and “This product has a maximum inventory level…”

These limitations, when layered on top of account-level capacity limits, may require closer coordination across your SKUs and sales forecasts.

Sellers React to Sudden FBA Capacity Reductions 

Many sellers have expressed concern over the sudden and steep nature of the capacity reductions. 

Sharp and Immediate Cuts

Many sellers saw their storage limits reduced by 70–75% compared to April, leaving them over capacity with just days to respond. The sudden timing has made it extremely difficult to adjust inventory plans. 

Previously “Confirmed” Limits Revised

Some sellers report that storage limits confirmed for May were later reduced without explanation. This has led to confusion about how reliable those confirmations are in practice.

Following Guidance, Now Penalized

Sellers who proactively followed Amazon’s previous recommendations—such as sending in inventory early to avoid surcharges—now find themselves having to undo that work, often incurring removal fees to stay compliant.

Little Time to Adapt

With virtually no prior warning, even well-prepared and experienced sellers are struggling to keep operations on track. The reactive nature of the change has disrupted planning and day-to-day logistics for many.

8 Proactive Steps to Regain Control

1. Audit Inventory Performance

Identify SKUs that are underperforming or slow to move—these are the first candidates for removal or AWD transition. You may use Amazon’s Inventory Performance Dashboard to pinpoint these slow sellers and aging inventory, as well as monitor Amazon IPI score and sales velocity.

2. Get Rid of Excess Inventory Quickly

Consider using Amazon DSP to target high-intent shoppers and quickly boost visibility for slow-moving products. By running ads that highlight Prime shipping benefits, discounts, or bundles, you can drive more traffic and conversions—helping to clear excess inventory and free up FBA capacity faster.

3. Submit Additional Capacity Requests Now

Make proactive use of Capacity Manager if you anticipate a need for more space.

Monitor your bid-to-value ratio carefully to optimize your request and improve approval odds.

4. Integrate AWD into Your Fulfillment Strategy

Use AWD to store additional inventory offsite while keeping top ASINs flowing through FBA. Consider AWD especially for seasonal items or longer-tail SKUs.

5. Adjust Shipment and Replenishment Cadence

Temporarily scale back shipments to focus on fast movers. Explore more frequent, smaller replenishment cycles where lead times allow.

6. Communicate Internally and With Partners

If you work with a 3PL or prep center, notify them of capacity constraints to avoid excess inbound shipments. Align your marketing and sales plans to ensure you are increasing sell-through on slower-moving ASINs blocking your capacity.

7. Boosting Profitability with FBA Reimbursement

When FBA limits block new shipments, each unit counts more. Seller Investigators recover lost revenue from FBA errors to help offset sales and stay profitable. This reclaimed capital can offset lost sales and keep your business more resilient during periods of restricted inventory flow.

8. Implement Effective Inventory Systems

To better manage shifting storage limits and sell-through requirements, consider using a centralized inventory system, like SoStocked, to track aged inventory, identify slow sellers, adjust replenishment frequency, and incorporate marketing efforts into forecasting. This approach helps you stay organized and responsive without relying solely on reactive tactics.