Recently, various seller groups have been complaining, mainly for the problem that Amazon’s storage capacity has dropped again and again, and a large number of sellers’ storage capacity has shrunk and turned on a red light. At present, Amazon has a replenishment limit and a storage capacity limit for sellers’ storage capacity. The replenishment limit is applicable to all sellers, and the storage capacity limit is mainly applicable to sellers whose IPI is lower than the threshold.

Replenishment limits determine the amount of inventory a seller can send to a fulfillment center and are set for different storage types (for example, assortment, oversized, apparel, and footwear). They are determined based on your historical and forecasted sales, independent of your Inventory Performance Indicator (IPI). The replenishment limit is based on the seller's inventory in transit plus the inventory in stock. The platform calculates it every week. If the quantity limit is exceeded, the creation of shipments will be stopped.

Storage limits are measured in cubic meters and represent the total amount of inventory that sellers can store in Amazon fulfillment centers. If your Inventory Performance Indicator score is above 400, you have no additional storage limits on top of your replenishment limits. It is calculated by the platform based on the seller's inventory on a quarterly basis, in cubic meters. If the seller's inventory exceeds the limit, Amazon will stop the seller from urgently creating shipments and will charge excess storage fees.

Sellers can view their replenishment limits and storage limits on the platform [Inventory] – [FBA Inventory] – [Inventory Performance].

In addition, Amazon will increase monthly inventory storage fees, charge overage inventory surcharges and add storage utilization surcharges.

Increase in monthly storage fees from February 1, 2023
Off-Season Storage Fee (January-September): Add $0.04 per cubic foot for standard-sized items; $0.03 per cubic foot for oversized items.
Peak Season Storage Fees (October-December): Fees for sortable items will remain the same; non-sortable large items will increase by $0.20 per cubic foot.

Overage inventory surcharges will be added from April 15, 2023 Inventory age between 180-270 days: Overage inventory surcharges will be levied, excluding the following categories of products: clothing, shoes, bags, jewelry and watches.
Inventory age between 271-365 days: increase the surcharge for inventory age between 271-365 days.

Storage utilization surcharges will be added from April 1, 2023
A storage utilization surcharge will apply to sellers who store in Amazon fulfillment centers with a high volume of inventory relative to their most recent weekly sales volume. This fee will affect Professional sellers with storage utilization above 26 weeks.

Warehouse Utilization = Average Daily Inventory Daily Delivery Volume in the past 13 weeks

Of course, if the seller is affected by the above restrictions, there is no need to worry too much. The seller can seek the cooperation of a third-party overseas warehouse in the United States to solve inventory restrictions and storage problems. If the seller's storage capacity is limited and the goods cannot be stored in the Amazon warehouse during transportation, you can change the address and transfer the goods to the overseas warehouse in the United States. Generally speaking, most of the overseas warehouses in the United States are free of storage fees for the first month, and the subsequent storage fees are much lower than the official Amazon warehouses. In this way, the seller can decide the time for the goods to be stored in the overseas warehouse according to the official warehouse capacity, and can transfer goods from the Empire Express US overseas warehouse to replenish the warehouse at any time.

Moreover, the US overseas warehouse has no restrictions on product size, and overweight and oversized items can also be stored in the warehouse normally, and no additional over-standard fees will be charged. If the size of the seller’s product exceeds Amazon’s warehousing standard, it can be normally shipped to Empire Express’s overseas warehouse in the United States, and then a drop shipping service can be done at the overseas warehouse in the United States.

For some products with poor sales, sellers can also remove them from Amazon warehouses to overseas warehouses in the United States, and clear the storage capacity for hot-selling products. If the store can continue to issue orders, it can be shipped directly from the overseas warehouse in the United States. If the product is completely unsalable and overstocked, it can be cleaned up directly in the overseas warehouse, discarded, destroyed or donated to local charitable organizations, or through The overseas warehouses in the United States are sold to local physical stores at discounted prices, etc., which can recover part of the losses.