If you sell on Amazon via FBA, the newly announced capacity limits for June and July could directly impact your Prime Day performance. In this article, we break down what’s changed, why it matters, and what steps you should take today to stay competitive.

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What exactly has changed with FBA limits?
Amazon has confirmed that FBA capacity limits will remain restricted through July 2025. This continues the adjustments that began in May, when many sellers experienced sudden reductions in capacity, some by as much as 75 percent.

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Key updates include:

• FBA storage limits remain capped at 5 months of projected sales volume, reduced from 6 months earlier this year
• Capacity utilization now includes both on-hand inventory and open shipments
• Performance metrics like IPI score and sell-through rates play a larger role in replenishment eligibility

Prime Day shipment deadlines are set:
• June 9 for minimal splits
• June 18 for Amazon-optimized splits

Overage fees were removed in July 2024, but exceeding limits still blocks shipment creation

Why does this matter now more than ever?
This change compresses your margin for error. With just five months of projected volume to work with, sellers must be surgical with their inventory. Overstocking long-tail products or holding stagnant SKUs can block your ability to restock top performers.

Prime Day adds another layer of complexity. Without precise forecasting and inventory planning, sellers risk missing key shipment windows or being locked out of restocking altogether.

What actions should FBA sellers take?
1. Audit inventory performance
Use the Inventory Performance Dashboard to identify slow-moving ASINs. These SKUs hurt your IPI and reduce overall capacity.

2. Remove or reallocate excess stock
Create removal orders for dead inventory or shift items to Amazon Warehousing and Distribution (AWD), which does not count against FBA capacity limits.

3. Submit capacity requests early
Use Capacity Manager to request additional cubic feet. Early release allows pre-positioning of granted inventory before the start of the month.

4. Adjust shipping timelines
Fine-tune replenishment lead times in Seller Central. Align them with operational capacity to avoid delays in FBA eligibility.

5. Leverage AWD where appropriate
For low-velocity, off-season, or long-tail SKUs, AWD offers reduced fees and automatic replenishment. It’s a strategic buffer against capacity blocks.

6. Restructure replenishment cadence
Shift toward smaller, more frequent shipments to maintain strong IPI scores and improve inventory turns.

7. Coordinate closely with logistics partners
Ensure your 3PLs, freight forwarders, and prep centers are aware of the FBA constraints and shipment deadlines to avoid bottlenecks.

8. Align forecasting across departments
Marketing, promotions, and inventory teams must work from a shared set of assumptions. Cross-functional planning ensures every SKU supports the same capacity strategy.

What’s the bigger strategic takeaway?
Amazon is treating capacity not just as a logistics function, but as a signal of catalog health. The reduction from six to five months is not a temporary measure. It reflects a deeper shift toward performance-based storage rights.

Sellers who treat FBA limits as fixed constraints will fall behind. Those who adapt (by cleaning their catalog, using the right tools, and aligning teams around SKU-level performance) will create space where others get blocked.

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This is not just about Prime Day.
It’s about rethinking how you plan, store, and sell for every peak period going forward.