Amazon announced on January 17th a change in the way FBA Storage limits will be structured. Amazon is transitioning from a unit-based limit to a cubic ft.-based strategy starting March 1, 2023.
The biggest call-out from this storage limits announcement is the seller’s option to buy additional storage space.
“With our new Capacity Manager, you can request additional capacity based on a reservation fee that you specify. Requests are granted objectively, starting with the highest reservation fee per cubic foot until all capacity available under this program has been allocated. When your request is granted, the reservation fee is offset by performance credits that you earn from the sales you generate using the extra capacity. Performance credits are designed to offset up to 100% of your reservation fee, so you don’t pay for the capacity as long as your products sell through. Our goal is to provide you with more control over how much space you can have while limiting unproductive use. We’ve piloted this feature with certain US sellers, and we’re excited to expand it so all sellers can request higher FBA capacity limits.”
What does this new storage limits structure mean for you? It means that you would have to analyze the cubic feet of each ASIN and how much space you currently have in stock occupies. You then must ensure that you will have enough space to replenish FBA Inventory and that you’re putting a strategy together to move any aging inventory. HINGE can help with all your needs. Our team of experts can help manage your inventory limits, how much to restock, and other hurdles you might be facing.
Reach out to us a hingecommerce.com/contact to schedule an appointment and see how our Channel Management services can help.