🚀 Amazon's New FBA Capacity Limits: A Game Changer for New Sellers
If you're a new Amazon seller, you know how important it is to have enough inventory to compete in your niche. But until recently, new sellers were limited to shipping in just 1,000 units of inventory. That's all changed with Amazon's new FBA capacity limits, which allow new professional selling accounts to establish their FBA sales record without limits for the first 39 weeks. This is a massive game changer that opens up many more competitive niches for new sellers.
The Traditional FBA Capacity Limits
Traditionally, new sellers were limited to shipping in just 1,000 units of inventory. While this may sound like a lot, it's not enough to compete in some niches. If you sell out of your inventory quickly, you need to restock fast to keep up with the competition. But it's hard to get your inventory in fast enough to keep in stock and secure your ranks. This is where Amazon's new FBA capacity limits come in.
New Professional Selling Accounts
New professional selling accounts now have zero FBA capacity limits for the first 39 weeks. This allows you to establish your FBA sales record without limits so that Amazon can determine how much capacity your FBA business needs as you grow. After the 39 weeks, you'll receive an IPI score, which will determine your capacity limits at Amazon. Sellers with consistent high IPI scores will receive higher limits, which will be adjusted with sales volume every 15th of the month.
Bid for Extra Capacity
If you think your capacities are too small and you can't keep up with your planned growth, you can bid for extra capacity. You can request up to 20% of your initial capacity or 2,000 cubic feet, whichever is greater. You set a maximum fee that you're willing to pay, and Amazon will see if they have the space and charge you accordingly. No upfront payment is required. If you hit these capacities and surpass them, you can earn 15 cents per credit for every dollar of sales.
Pros and Cons
The new FBA capacity limits are a game changer for new Amazon sellers. They allow you to establish your FBA sales record without limits, which means you can access and attack more competitive niches. However, you need to be careful not to abuse the new conditions. After the first nine months, it's going to be really difficult if you haven't managed your IPI score properly. You also need to factor in the cost of using a 3PL as you scale up.
Highlights
- New professional selling accounts have zero FBA capacity limits for the first 39 weeks.
- Sellers with consistent high IPI scores will receive higher limits, which will be adjusted with sales volume every 15th of the month.
- You can bid for extra capacity if you think your capacities are too small and you can't keep up with your planned growth.
- The new FBA capacity limits allow new sellers to access and attack more competitive niches.
FAQ
Q: What are FBA capacity limits?
A: FBA capacity limits are the maximum amount of inventory that a seller can send to Amazon's fulfillment centers.
Q: How do I know my FBA capacity limits?
A: Your FBA capacity limits are determined by your IPI score, which is updated every 15th of the month.
Q: Can I bid for extra capacity?
A: Yes, you can bid for extra capacity if you think your capacities are too small and you can't keep up with your planned growth.
Q: What happens if I go over my FBA capacity limits?
A: If you go over your FBA capacity limits, you'll get charged overage fees. You also won't be able to create new shipments and send in new inventory.
Resources:
- [Amazon FBA Capacity Limits](https://sellercentral.amazon.com/gp/help/external/201112850)
