Amazon Put Your FBA Business on a Diet

Yup, the new 2025 FBA storage limits are in full effect. And if you’ve logged into Seller Central recently and nearly spit out your coffee at your capacity number… you’re not alone.

Let’s talk about what’s happening—and how one seller went from panic to profit with less space than ever.

📖 Real Talk: How Eric Outsold Bigger Sellers with a Smaller Storage Limit

Eric sells microfiber towel sets.

Sexy? No.

Profitable? Very.

But after Amazon’s latest storage update, his limit got chopped from 2,500 cubic feet to just 1,000. That’s a 60% drop. Brutal.

He panicked. He considered turning off PPC. He even thought about pulling out of FBA altogether.

Then we sat down and mapped out a strategy.

In 30 days?

Eric increased his profit margin by 18% and actually sold more units.

All with less inventory in Amazon’s warehouse.

Let me show you how.

🔢 What’s Changed with FBA Storage in 2025

Here’s the simplified breakdown:

• Amazon’s new capacity limits are now based more on sell-through rate and product size tier

• You can now be penalized for slow movers faster

• You’ll get monthly capacity estimates instead of fixed limits

• And Amazon wants leaner, faster sellers—basically, the Costco model: bulk profits, tight turnarounds

📉 Translation: More Storage Is a Privilege, Not a Right

So if your stuff is:

• Oversized

• Slow-moving

• Priced wrong

• Or stuck in “PPC purgatory”

You're gonna be capped. Hard.

🎯 How Eric Sold More with Less

We made 4 key moves that turned the game around:

✅ 1. He Tightened His SKU List

He stopped sending in slow variations. Out of 12 colors, 3 made 80% of sales.
💡 Cut the dead weight.

✅ 2. He Increased Price Slightly (and Added Value)

Instead of competing on price, we bundled a bonus "cleaning guide" PDF and raised the price $3.
💡 Perceived value > volume.

✅ 3. He Leveraged 3PL for Overflow

We connected him with a third-party logistics partner to hold inventory outside of FBA. When stock ran low, we drip-fed shipments in.
💡 Just-in-time FBA.

✅ 4. He Got Aggressive With PPC on Winners

Instead of cutting ads, we pushed more budget to his best-performing color. Turn rate went up, which increased his future storage allotment.
💡 Amazon rewards momentum.

🧠 Big Takeaway:

Amazon’s not giving you less space to be cruel.
They’re forcing you to be more efficient.

If you treat storage like beachfront property, you’ll start asking smarter questions:

• What sells fast?

• What earns the most per cubic foot?

• What’s worth reordering?

• What can I drop—right now?

✅ Summary:

• Cut slow SKUs

• Raise perceived value

• Use 3PLs smartly

• Drive sales on your best listings

• Play Amazon’s turn-rate game

Eric did it—and you can too.

📣 P.S. Don’t Let a Smaller Storage Limit Shrink Your Ambition

🧠 Think lean.
📦 Ship smart.
🚀 Grow anyway.

You’ve got this.

Until next time,

Andy Splichal
Founder & Managing Partner of True Online Presence & Author of the Make Each Click Count Book Series

P.S. If you're tired of wasting money on ads that don’t convert — and you're ready to take your Amazon PPC from “meh” to money machine — let’s chat. I offer done-for-you ad management that actually works (no fluff, just ROI). 📅 Click here to book a call with me — let’s scale this thing 🚀

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