Amazon’s FBA Storage Explained: NO MORE Storage Limits! New Amazon FBA Capacity Limits in 2023

If you’re an Amazon FBA seller, you’re probably always on the lookout for the latest changes and updates that can impact your business. As of March 1st, 2023, Amazon rolled out a new storage system that promises to reshape the way sellers approach inventory storage. This article will break down this transformative update, and other tips for effectively managing your inventory and cash flow. Let’s get started.

1. A Revolution in Amazon’s Storage: No More Units, It’s All About Volume Now!

Amazon has been a trendsetter in e-commerce, and this recent change continues that tradition. The company has shifted its storage strategy, focusing on volume-based metrics rather than units.

Here’s what’s changed:

Sellers are no longer restricted by storage and restock limits based on the number of items.
The new emphasis is on volume (measured in cubic feet). This means you need to think about how efficiently your products occupy space in Amazon’s warehouses.

2. Introducing the Capacity Monitor: A Dashboard Game Changer

Forget about the old ways of tracking inventory. The revamped inventory performance dashboard now boasts a new tool: the Capacity Monitor.

How it makes a difference:

Sellers can visualize their storage in terms of cubic feet instead of merely counting items.
Amazon announces capacity limits every third week of the month, ensuring sellers can plan their inventory two months in advance. This foresight can be crucial for peak sales periods and holidays.

3. Understanding the Nuances: Individual vs. Professional Seller Account

Amazon offers two types of seller accounts: Individual and Professional. How does the new storage system affect these accounts differently?

Here’s the breakdown:

Individual Seller Account: Those under this account have a standard capacity limit set at 15 cubic feet.
New Professional Seller Account: If your professional account is fairly new (less than 39 weeks), there’s good news! You’ll face no capacity limits.
Established Professional Seller Accounts: Those with older professional accounts will have their capacity limits determined by two main factors: the IPI score and their sales performance.

4. Unlocking More Storage: The Reservation Fee System

Feeling restricted by your storage limits? Amazon introduces a system allowing sellers to request additional storage capacity. But there’s a catch – it’s like a bidding war!

Here’s how it works:

Sellers can bid a reservation fee for extra space.
The more you’re willing to pay, the higher your chances of securing that additional capacity.
However, if your products fly off the shelves, performance credits can offset your reservation fee. This could mean you end up not paying anything extra if your products sell well.

5. Manage Cash Flow Like a Pro with Payability

Cash flow can make or break a business. Amazon sellers often find themselves waiting for payouts, leading to potential inventory restocking delays. Enter Payability.

Benefits of Payability:

Say goodbye to Amazon’s standard two-week payout duration. With Payability, sellers receive daily payouts.
This regular influx of cash ensures sellers can promptly restock inventory, facilitating business growth.
As an added perk, using the link provided in the source video, sellers can secure a whopping $500 sign-on bonus with Payability!

6. Decoding Your Inventory Capacity: How Many Units Can You Send?

For those without existing inventory in Amazon’s warehouses, start by creating a new shipping plan. This will give you insights into the number of units you’re allowed to send.

For sellers with inventory already stored at Amazon, the Capacity Monitor will be your guide. It displays current capacity usage and gives an estimate of potential additions.

7. Amplify Your Amazon Journey: Engage with the Community

There’s power in numbers! The video urges sellers to join the Amazon Facebook group, a thriving community boasting over 30,000 members. By engaging in discussions and sharing experiences, sellers can gain insights, troubleshoot issues, and grow their network.

In Conclusion:

The e-commerce realm is ever-evolving, and as Amazon sellers, it’s crucial to stay updated. These recent changes in Amazon’s storage system aim to streamline inventory management. Coupled with tools like Payability and the support of the Amazon seller community, there are ample opportunities to optimize and grow your online business. Stay informed, engage with the community, and here’s to scaling new heights in your Amazon selling journey!