How Amazon’s 2025 FBA Inventory Changes Impact Your Business (And What to Do About It)

Running an Amazon business in 2025 has become trickier than ever. With Amazon slashing FBA storage capacity and bringing back strict restock limits, sellers face tighter margins and higher risks of stockouts or storage fees. So how can you navigate these changes and protect your business?

Let’s dive into what’s new — and what actions you should take right now.

In mid-2025, Amazon implemented a significant reduction in how much inventory sellers can send to Fulfillment by Amazon (FBA). The allowance dropped from six months of forecasted sales to just five. This change heavily impacts inventory buildup for major events like Prime Day.

Sellers must now manage tighter storage limits and comply with strict inbound shipment deadlineChart comparing FBA storage limits before and after Amazon's 2025 update."

Amazon has reactivated restock limits at the ASIN (product) level. This means you can no longer send unlimited quantities of your bestsellers without consequence. If you overstock low-performing ASINs, it can hurt your ability to send inventory for your top products

Your Inventory Performance Index (IPI) score now plays a critical role in how much FBA space you get. A score below 400 means tighter restrictions. To avoid capacity limits, maintain strong sell-through rates and minimize excess inventory.

Sellers face two major risks:

• Running out of stock during peak events like Prime Day.

• Over-stocking and paying costly storage fees.

Amazon has introduced new fees such as the Storage Utilization Surcharge for inventory held over 26 weeks, plus a Low-Inventory Level Fee if your 30- or 90-day supply falls below target levels.

• Monitor your IPI weekly and take action fast.

• Use forecasting tools to balance stock levels.

• Leverage 3PLs (third-party logistics) or AWD (Amazon Warehousing & Distribution) for excess inventory.

• Segment inventory: FBA for fast-sellers, FBM for slow movers.

• Be mindful of new cutoffs, especially for Prime Day preparations.

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