Running out of storage space on Amazon FBA can feel like slamming into a wall at full speed. You’ve got cash tied up in inventory, bestsellers waiting to be replenished, and suddenly Amazon says: “No space available.”
If you’ve hit this roadblock, you’re not alone. Storage limits have become a constant challenge for sellers in 2025, especially for new accounts, seasonal spikes, or fast-scaling brands. The good news? Amazon’s Capacity Manager gives you a way to take back control. With the right bidding strategy, you can unlock more space and keep products moving without losing sales momentum.
In this post, we’ll cover why storage limits exist (and how they’re calculated), how to request extra capacity, how reservation fees and performance credits work, smart bidding tactics, and what to do if your request gets denied.
Why Does Amazon Limit FBA Storage?
Amazon caps storage space to keep fulfillment centers running efficiently. Every cubic foot matters when millions of sellers are sending inventory. Limits are set monthly and vary by storage type (standard-size, oversized, apparel, footwear, dangerous goods, etc.).
Key factors Amazon uses to assign limits:
- Inventory Performance Index (IPI): Your score for how well you manage stock.
- Sales velocity: Faster-moving products get priority.
- Seasonality & demand: Space gets tighter during Q4, Prime Day, and other peaks.
- Warehouse availability: If a fulfillment center is packed, everyone feels the squeeze.
How the Capacity Manager Works
Capacity Manager is Amazon’s built-in system for sellers to request more storage, essentially bidding for additional cubic feet of space.
Here’s the breakdown:
- Choose your timeframe: You can request for the next month or up to 2 months ahead.
- Enter your requested volume: Calculate how many cubic feet you need.
- Set your maximum reservation fee per cubic foot: This is your “bid.”
- Submit your request: Amazon reviews it based on space availability, your IPI, sales velocity, and bid competitiveness.
If approved, you get more space. If denied, you can try again with a different bid or explore alternative strategies.
Reservation Fees & Performance Credits
This is where it gets interesting.
- You don’t pay upfront. The reservation fee is only charged at the end of the period.
- It adjusts downward. If other sellers get the same space for less, you’ll pay the lower fee.
- Performance credits can offset costs. For every $1 of sales generated using that extra capacity, Amazon credits you $0.15. Sell enough, and your fee could be fully covered.
Smart Bidding Strategies
Here’s how to boost your odds of approval without overspending:
- Know your numbers → Use Amazon’s Reservation Fee Calculator to estimate fees and see how sell-through impacts costs.
- Bid responsibly → Most winning bids range between $0.10–$0.50 per cubic foot, but peak seasons may require higher bids.
- Improve your IPI → Keep it above 400 by clearing excess inventory, fixing stranded listings, and driving sell-through.
- Plan ahead → Submit requests early for Q4, Prime Day, or product launches. Waiting until the last minute leaves you bidding in a crowded market.
- Prioritize SKUs → Use the extra space for high-margin, high-demand products (not slow movers).
If Your Request Gets Denied
Don’t panic, it happens. Here are next steps:
- Recheck your IPI score and sales velocity.
- Resubmit with a higher reservation fee.
- Request a smaller volume increase instead of one large jump.
- Explore alternatives like Amazon Warehousing & Distribution (AWD) to stage inventory until FBA space opens, or use FBM and 3PL partners to keep listings active and orders flowing.
Best Practices to Stay Ahead
Even if you win more space today, storage constraints can come back. To stay in control:
- Delete old shipment drafts: Unfinished or abandoned shipments still count against your storage limits, even though no inventory is actually on the way.
- Balance your catalog: Free up cubic feet by cutting back on bulky slow sellers.
- Forecast demand: Use seasonality data and Amazon’s Restock Tool to plan shipments strategically.
- Drive sell-through: Pair PPC campaigns with discounts or coupons to clear space faster.
- Adopt a hybrid model: Use FBM alongside FBA to avoid going completely out of stock.
Final Takeaway
Amazon’s storage limits aren’t going away, but they don’t have to stop your growth. By learning how to bid strategically in Capacity Manager, improving your sell-through, and planning ahead, you can unlock the space you need to scale.
If you’re stuck with no storage today, the fix is to bid smart, move inventory efficiently, and keep your Amazon engine running.
