Great question Janice & John! Amazon recently introduced Capacity Limits, which replace Restock Limits and Storage Limits to give sellers more predictable storage space at FBA fulfillment centers. Here’s what you need to know and how it affects your business:

1. What Are Capacity Limits?
Amazon assigns sellers a monthly capacity limit, which is the total cubic feet of inventory you can store in FBA warehouses. These limits are based on:
✅ Your sales performance
✅ Your Inventory Performance Index (IPI) score
✅ Amazon’s warehouse capacity

Each month, Amazon updates these limits and emails sellers with details on:

Your past month’s usage (February, in this case)
Your upcoming month’s limit (March)
Your current storage utilization

2. Why Did You Receive This Email?
Since this is your first time receiving a Capacity Limit update, it simply means you now have visibility into your monthly FBA storage allowance. The good news? Your storage capacity increased, meaning Amazon is allowing you to send in more inventory than last month! 🎉

3. Does This Affect Your Business?
Yes, but in a positive way! Here’s what it means for you:
✅ You have more space → You can send in more inventory.
✅ No sudden restrictions → Unlike restock limits that changed weekly, this gives you predictability.
✅ Opportunity to plan → Use this information to manage inventory levels, launch new products, or scale up your business efficiently.

4. What Should You Do Next?
🔹 Check your updated capacity limits in Seller Central → Go to Inventory > FBA Dashboard > Capacity Monitor.
🔹 Plan your shipments accordingly → Since you have more space, consider sending in additional inventory of your best sellers or launching new products.
🔹 Monitor your IPI Score → Keeping a healthy IPI (above 400) ensures Amazon continues to grant you more capacity in the future.

5. Final Thoughts
This is a good update for your business—more capacity means more growth potential. Just keep managing your inventory efficiently, stay on top of your IPI, and take advantage of the additional storage Amazon is providing. 🚀

Thank you for the explanation, Adam.

I second what Adam mentioned as well. The email they sent to you is also more of an update and how you are doing with utilizing your storage space. If you are doing well then they will increase your limit. 👍