Ecommerce Tips

FBA Capacity Limits

March 21, 2023

Amazon has announced a new policy that will limit the amount of inventory third-party sellers can send to Amazon's fulfillment centers. The restock and storage limits will be combined into a single monthly metric called the FBA capacity limit.

This new policy may lead to additional costs and fees for sellers who store inventory in Amazon's warehouses. Limited inventory space and higher fees for large and heavy items could prove to be costly.

To secure more space, brands will need to apply for space increases and pay a reservation fee. If the sell-through rate of the product in that extra space is reached, the fee will be waived. If the rate is not achieved, brands will owe up to the full reservation fee amount, depending on the sell-through performance.

For sellers with seasonal peaks, it may be difficult to determine the amount of product needed to send to FBA, making these fees difficult to avoid. These changes have raised concerns among sellers that they may incur additional fees due to capacity limits. Additionally, Amazon has planned to include other fee increases in their charges for 2023. You can read about those changes here.  

Spreetail is an excellent solution for third-party sellers looking to move large and bulky items quickly. With seven fulfillment centers located throughout the United States, Spreetail may be a better option for businesses looking to avoid storage fees. Since the goods that Spreetail ships are purchased directly from brand partners, there are no storage fees.

To determine if Spreetail is the better option for your business, check out our side-by-side comparison chart.

Rachel Libby

Director, B2B Marketing

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