How to Request More Inventory Space at Amazon FBA (Capacity Manager Walkthrough)

One of the most frustrating experiences for any Amazon FBA seller is hitting a storage limit—especially when you’ve got best-selling inventory ready to send in and cash flow tied up in product that can’t move.

You’re not alone. In 2025, FBA storage constraints are more common than ever, particularly for new sellers or those scaling quickly. Fortunately, Amazon introduced a solution: the FBA Capacity Manager.

With this tool, you can request additional inventory storage space—and with the right approach, you can increase your capacity without getting stuck in the system.

In this in-depth guide, we’ll walk you through:

  • Why FBA inventory space is limited
  • How Amazon’s Capacity Manager works
  • Step-by-step instructions to submit a storage increase request
  • How Amazon decides whether to approve your request
  • Tips to improve your chances and manage space effectively
  • What to do if your request is denied

Let’s help you get the space you need to scale your Amazon business.

🚚 Why Does Amazon Limit FBA Storage?

Amazon limits inventory storage to maintain warehouse efficiency, reduce congestion, and encourage sellers to manage inventory responsibly.

Storage limits are generally based on:

  • Inventory Performance Index (IPI)
  • Historical sales velocity
  • Seasonality and peak demand periods
  • Current fulfillment center availability

When sellers overstock slow-moving products or send in too much inventory all at once, it clogs up space Amazon needs for faster-turning items.

To keep things running smoothly, Amazon assigns capacity limits to each seller by month and by storage type (standard-size, oversized, apparel, footwear, etc.).

🔧 What Is the Amazon FBA Capacity Manager?

The Capacity Manager is Amazon’s built-in system that allows professional sellers to request additional FBA storage space on top of their assigned limits.

It was introduced to:

  • Give sellers more control over their fulfillment strategies
  • Let Amazon make data-driven decisions about space allocation
  • Allow Amazon to charge a reservation fee to balance demand

Sellers can now request space up to 3 months in advance and, if approved, get additional capacity—with a performance-based fee refund if your products actually sell through.

📋 Step-by-Step: How to Request More Storage Space

Let’s walk through how to submit a capacity increase request using Amazon’s Capacity Manager.

✅ Step 1: Navigate to Capacity Manager in Seller Central

  1. Log in to Seller Central
  2. Go to Inventory > FBA Inventory
  3. Click on Capacity Monitor
  4. Select the “Capacity Manager” tab (or use the search bar in Seller Central for “Capacity Manager”)

You’ll see your current storage limits, usage by storage type, and any previous or pending requests.

✅ Step 2: Choose Your Timeframe

Amazon allows you to request capacity for the upcoming month, as well as up to two future months.

This helps with forward planning—especially for Q4, Prime Day, or new product launches.

Select the month for which you’re requesting additional space.

✅ Step 3: Enter the Additional Volume You Need

Amazon asks how much extra capacity (in cubic feet) you’d like.

📦 To calculate this:

  • Go to your product catalog
  • Multiply the dimensions of each unit (L × W × H)
  • Multiply by the number of units you want to send
  • Divide by 1,728 to convert to cubic feet

You can also estimate based on historical usage or how much space similar shipments have taken up.

✅ Step 4: Set Your Reservation Fee Per Cubic Foot

This is where it gets strategic.

You’ll be asked to bid a reservation fee—a dollar amount per cubic foot that you’re willing to pay for the space if it doesn’t sell through.

💡 Important:
If your inventory sells through and generates enough sales, Amazon will refund the reservation fee (partially or in full).

So it’s a performance-based system.

Most bids fall in the range of $0.10 to $0.50 per cubic foot, depending on season and demand. Q4 bids are often more competitive.

✅ Step 5: Submit the Request

Review your:

  • Requested cubic footage
  • Target month
  • Reservation fee per cubic foot

Then click Submit Request.

You’ll get a confirmation and can monitor the status under Pending Requests.

Amazon will typically respond within a few days, depending on warehouse space availability and your account performance.

📊 How Amazon Approves Requests: What Matters Most

Amazon’s decision is based on several factors:

1. Your IPI Score

The Inventory Performance Index is Amazon’s core measure of how well you manage inventory.

To increase your chances of approval:

  • Keep your IPI above 400 (ideally 500+)
  • Improve sell-through rate by moving slow inventory
  • Avoid excess inventory or stranded listings
  • Restock smartly and avoid sending in too much at once

2. Your Sales Velocity

Amazon prefers to give space to sellers who:

  • Move inventory quickly
  • Have consistent sales over time
  • Operate in high-turn categories like consumables

If your products sell quickly and predictably, you’re more likely to be approved.

3. Your Bid Amount

Yes, Amazon takes the reservation fee into account. The higher the bid, the more incentive Amazon has to allocate space to you.

But don’t just overbid—only offer what makes sense for your profit margins. Remember, you get refunded if you sell through, but it’s a cost if you don’t.

4. Peak Season Considerations

During Prime Day or Q4, Amazon is more selective.

Plan early, submit requests months in advance, and monitor historical trends in your category.

📈 What to Do After You’re Approved

If your request is approved, here’s how to make the most of it:

  1. Send in inventory promptly – delays can result in missed sales
  2. Track sell-through rates closely – Amazon may reduce future approvals if sell-through is poor
  3. Promote your products with PPC or coupons to ensure strong movement
  4. Use the space wisely – prioritize high-margin, high-demand SKUs

❌ What If Your Request Is Denied?

It happens. Don’t panic.

Here’s what to do:

  • Review your IPI score and make necessary improvements
  • Resubmit with a higher reservation fee
  • Break your request into smaller increments
  • Focus on FBM (Fulfilled by Merchant) as a backup
  • Use a 3PL or prep center to hold excess stock and drip-feed to FBA

You can resubmit requests for future months, so keep monitoring your performance and capacity needs.

🧠 Best Practices to Stay Ahead of FBA Storage Limits

Whether you’re submitting a request or trying to avoid hitting limits again, here are some proven tips:

🧹 1. Clean Up Old or Excess Inventory

  • Run Amazon’s Manage Inventory Health reports
  • Create removal orders for non-performing SKUs
  • Liquidate stale inventory through deals or Lightning Deals

📦 2. Use a 3PL to Buffer Inventory

Work with a reliable third-party logistics (3PL) provider to:

  • Store excess stock
  • Repackage and prep for FBA
  • Ship partial replenishments as space allows

This helps you stay nimble without overloading FBA.

📊 3. Forecast Inventory Needs Intelligently

Use forecasting tools like:

  • Amazon’s Restock Inventory Tool
  • SoStocked, Forecastly, or Sellerboard
  • Your own seasonality data from prior years

The more accurately you forecast, the less you’ll rely on storage “emergencies.”

⚖️ 4. Balance FBM and FBA

If you’re constantly maxing out space, use FBM (Fulfilled by Merchant) listings as a safety net.

  • You stay in stock
  • You maintain sales rank
  • You don’t sacrifice customer experience

Many successful sellers operate hybrid models during constrained times.

✍️ Final Thoughts: Use Capacity Manager to Unlock Growth

Storage limitations don’t have to hold your business back.

Amazon’s Capacity Manager gives you a way to take control—if you understand how it works and use it strategically.

By combining:

  • Smart forecasting
  • Efficient space usage
  • Competitive (but profitable) bidding
  • A strong sell-through strategy

…you’ll position yourself for faster growth and fewer fulfillment headaches.

Need help managing your Amazon inventory or navigating FBA logistics?
At Marketplace Valet, we help sellers streamline operations, forecast smarter, and unlock growth with custom strategies and expert support.

📩 Let’s talk about optimizing your FBA inventory strategy.

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