Amazon FBA Capacity Limits Reset

Quick Summary

Q1 2026 capacity limits announced with new IPI threshold of 350 (down from 400)
Sellers below 350 IPI face up to 40% storage reduction vs current allocation
Capacity Manager bidding opens January 2 for additional space at $0.35-$0.75/cubic foot
December 15-31 IPI scores determine your Q1 allocation

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What's Happening

Amazon has announced the Q1 2026 FBA capacity limit reset, effective January 1, 2026. The new Inventory Performance Index (IPI) threshold drops to 350, down from the previous 400. However, sellers scoring below this threshold face storage reductions of up to 40% compared to their current allocation. What this means in practice (from the agencies we work with): plan around fee reconciliation and inventory re-allocation, not the press release. What this means in practice (from the agencies we work with): plan around fee reconciliation and inventory re-allocation, not the press release.

Your December 15-31 IPI scores will determine your Q1 allocation. Sellers have a narrow window to optimize inventory and improve their scores before the calculation period closes.

Key Changes for Q1 2026

New IPI Threshold

350

Down from 400 (easier to qualify)

Storage Reduction

-40%

For sellers below 350 IPI

Calculation Window

Dec 15-31

Scores determine Q1 limits

Why December Matters

Amazon calculates your Q1 capacity based on your IPI performance during December 15-31. This is the last opportunity to clean up aged inventory, improve sell-through rates, and boost your score before limits lock in.

IPI Score Impact on Capacity

IPI Score Range	Capacity Impact	Capacity Manager Access
550+	+20% bonus allocation	Priority bidding access
450-549	Standard allocation	Full access
350-449	-15% reduction	Limited access
Below 350	-40% reduction	No access

Capacity Manager Bidding Opens January 2

Request Additional Capacity

Capacity Manager opens January 2 for sellers who need more storage. Amazon confirms reservation fees range from $0.35 to $0.75 per cubic foot, depending on demand and your performance history.

Reservation fees refunded if you generate enough sales during the period
Bids accepted weekly on a first-come, first-served basis by IPI tier
Higher IPI scores get priority acceptance for capacity requests

Impact on Sellers

Who Benefits

Sellers with IPI scores between 350-399 who previously faced restrictions will now qualify for standard capacity. If you improved inventory management in Q4, you may see expanded limits.

Who Faces Challenges

Sellers below 350 IPI face the steepest cuts. A 40% storage reduction during Q1 can cripple inventory-intensive businesses, especially those relying on seasonal restocks.

What You Should Do Now

1.
Check Your Current IPI Score: Log into Seller Central and review your IPI dashboard. Note which factors are dragging your score down: excess inventory, stranded inventory, or sell-through rate.
2.
Liquidate Aged Inventory: Create removal orders or run outlet deals for inventory over 90 days old. The December calculation window penalizes aged stock heavily.
3.
Fix Stranded Inventory: Resolve any stranded listings immediately. Stranded inventory counts against your IPI with zero sales contribution.
4.
Plan Capacity Manager Bids: If you anticipate needing extra space in Q1, budget $0.50-0.75/cubic foot for Capacity Manager reservations starting January 2.

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Frequently Asked Questions

Common questions about this topic

Q1 2026 capacity limits take effect January 1, 2026. Your allocation is determined by your IPI scores during December 15-31, 2025. Capacity Manager bidding for additional space opens January 2.

The new IPI threshold is 350, down from 400. Sellers at or above 350 qualify for standard capacity. Sellers below 350 face up to 40% storage reduction. Scores above 550 receive bonus allocation.

Improve your IPI score by liquidating aged inventory, fixing stranded listings, and increasing sell-through rates. You can also bid for additional capacity through Capacity Manager starting January 2 at $0.35-$0.75 per cubic foot.

Sellers below 350 IPI face up to 40% storage reduction and cannot access Capacity Manager to bid for additional space. Focus on liquidating aged inventory and improving sell-through before December 31.

Verified Sources

All information verified from official Amazon sources and trusted industry analysts as of publication date.

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Deep Dive: Related Guides

For more comprehensive analysis on these topics:

→ Ultimate Amazon FBA Guide 2026

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→ Amazon Inventory Management 2026: Cash Flow Strategies

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