In the fast-moving world of Amazon, change is constant — but some shifts hit harder than others.
Over the past few weeks, many sellers have noticed a sharp, unexpected drop in their FBA storage limits. We’re not talking small tweaks. We’re seeing reductions as steep as 75%, with an average cut hovering around 50% across the board.
And here’s the kicker: this isn’t based on your IPI score or how fast you sell through your inventory.
In other words, even high-performing sellers with excellent sell-through and healthy inventory performance metrics are seeing their space slashed. That alone is raising eyebrows — and plenty of concern — across the seller community.
So, what’s going on?
Amazon hasn’t made a formal announcement explaining the shift, but the pattern is hard to ignore. Sellers with solid metrics are still getting hit, and the scale of the reductions suggests this is more than a routine adjustment.
One strong theory? Amazon is using FBA storage limitations to nudge sellers toward its new AWD (Amazon Warehousing and Distribution) network.
AWD has been quietly growing in the background, offering a broader supply chain solution where sellers can store large quantities of inventory offsite and drip-feed units into FBA as needed. It’s Amazon’s way of extending its control over the full logistics pipeline — and these storage cuts may be the incentive needed to get sellers on board.
Why this matters — and fast
For many brands, especially those preparing for Prime Day, back-to-school, and Q4, these new limits are more than an inconvenience — they’re a potential profit-killer.
Having less FBA storage means fewer units available for fast Prime shipping. That translates to stockouts, missed sales, and a drop in organic rankings — the kind of cascading impact that can take weeks (or months) to recover from.
And because these changes aren’t based on traditional performance metrics, it becomes harder to predict or prepare using the same systems sellers have relied on for years.
What sellers should be doing now
While we wait for official clarification from Amazon (if it ever comes), sellers need to shift their inventory strategy immediately.
That starts with treating FBA not as a central warehouse, but as a fulfillment channel. Think of it as a last-mile delivery station, not your main storage hub.
To adjust, many brands are already:
Increasing their use of 3PLs (third-party logistics providers) to manage overflow inventory and prep.
Diversifying storage across FBA, AWD, and 3PL to stay flexible and respond to spikes or changes in demand.
Sending inventory into AWD earlier, especially with Q4 planning in mind, to avoid last-minute bottlenecks and restock delays.
This isn’t just a workaround — it’s the new normal.
My take on the shift
In some ways, this feels like Amazon playing a longer game. By controlling more of the seller logistics chain through AWD, Amazon increases reliability, efficiency, and data control. That benefits their ecosystem — but it forces sellers to adapt quickly, and sometimes painfully.
I see this as a clear message: If you’re not evolving your fulfillment strategy, you’ll fall behind. Personally, I’m doubling down on building smarter inventory systems, spreading risk across fulfillment options, and encouraging sellers I work with to treat AWD not as optional, but essential.
It’s not ideal. It’s not fair. But it is happening.
Final thoughts
This change serves as a powerful reminder: Amazon is a dynamic platform, and what worked six months ago may not work tomorrow.
Staying competitive means staying alert — and agile. If your FBA storage just dropped, don’t panic. But do act. Revisit your inventory workflows. Build in flexibility. And think long-term about how you want to structure your supply chain.
Because when Amazon shifts direction, the sellers who succeed are the ones who move fast — not the ones who wait for things to return to normal.
