Amazon Tightens FBA Storage and Capacity Rules Starting August 16

What’s Changing—and Why It Matters

Starting August 16, 2025, Amazon will tighten Fulfillment by Amazon (FBA) storage limits and raise fees for sellers with low Inventory Performance Index (IPI) scores. The IPI—which currently requires a score of at least 400—measures inventory health based on sell-through rate, stranded inventory, excess stock, and in-stock performance. Sellers falling below this threshold risk reduced FBA capacity, limiting how much they can restock into Amazon’s network.

According to eFulfillment Service, Amazon has already reduced typical storage allowances from six months of forecasted sales to about five months, with some sellers seeing cuts as high as 75%. This has added new complexity to inventory planning, especially with the holiday season approaching.

Amazon’s own documentation on Capacity Manager confirms that limits are calculated in cubic feet and apply to both existing inventory and pending shipments, with allocation heavily influenced by performance metrics.

Why This Makes Considering a 3PL More Important Than Ever

Buffer Capacity to Weather Volatility

With storage limits changing rapidly and sometimes without much notice, relying solely on Amazon’s network can leave brands exposed. A third-party logistics provider (3PL) can serve as a buffer, storing overflow inventory and ensuring that space restrictions at FBA centers don’t cut off your ability to meet demand.

Streamlined Inventory Flows and Just-in-Time Restocking

Partnering with a 3PL enables just-in-time replenishment, sending only what’s needed into FBA while keeping the rest off-site. This reduces idle stock, helps maintain a healthy IPI score, and minimizes excess storage fees.

Multi-Channel Fulfillment Support

When FBA space is limited, a 3PL can handle orders for other marketplaces or direct-to-consumer channels. This ensures business continuity even when Amazon fulfillment space is constrained, as highlighted in Eva’s guide to Amazon logistics.

Cost Savings and Operational Flexibility

3PLs often charge lower storage rates than Amazon’s long-term fees while offering value-added services like labeling, kitting, and returns. They also provide scalability without requiring brands to invest in their own facilities or technology infrastructure.

What Businesses Should Do Now

1. Check your IPI and capacity forecasts weekly in Amazon Seller Central to anticipate any upcoming limits.
2. Segment your inventory strategy, keeping slow-moving SKUs at a 3PL and fast sellers flowing into FBA.
3. Adopt smaller, more frequent replenishments to stay under space caps while maintaining stock availability.
4. Leverage your 3PL for multi-channel orders, reducing dependency on Amazon’s storage.
5. Monitor your per-unit costs across both FBA and 3PL workflows to protect margins.

By reducing storage windows and tying space directly to performance, Amazon is signaling that operational efficiency is no longer optional. For e-commerce sellers, working with a capable 3PL is no longer just a backup plan—it’s a strategic necessity for maintaining flexibility, controlling costs, and protecting sales during volatile peak seasons.