Amazon Capacity Manager: Strategic Inventory Optimization Guide
Amazon Capacity Manager Q&As
Q: How often does Amazon evaluate storage requests?
A: Amazon evaluates the availability of additional capacity in their fulfillment centers every 3 to 4 days. During these evaluations, they distribute any available capacity through the Capacity Manager.
Q: How does Amazon determine which requests to approve?
A: Amazon prioritizes requests based on the highest reservation fee per cubic foot. They start with the highest bid and continue down the list until all available capacity is allocated.
Q: How often should I check the status of my request?
A: You should check your pending requests on a weekly basis to compare your reservation fee to those of approved requests. If your fee is lower than the lowest approved fee, you may want to consider increasing your bid to increase your chances of approval.
Q: How long will it take for Amazon to approve my request?
A: The approval timeframe varies depending on the demand for additional capacity and your reservation fee. Your request may be granted in a few days, or it may remain pending until it reaches the expiration date.
Q: Can I cancel my request and submit a new one with a higher reservation fee?
A: Yes, you can cancel your pending request and submit a new one with a higher reservation fee at any time. This may increase your chances of receiving the additional capacity.
Q: What happens when my capacity limit increase request is granted?
A: Once your request is approved, its status will change to “Granted” in Capacity Manager, and you’ll receive an email notification. Your new, higher limit will take effect immediately and will be used to determine how much inventory you can send to fulfillment centers and whether you’ll be charged FBA inventory overage fees.
Q: Will I be charged a reservation fee upfront?
A: No, you won’t be charged a reservation fee upfront. Instead, you’ll be charged the difference, if any, between your total reservation fee and performance credits earned at the end of the specified period.
Q: How will performance credits be calculated?
A: Performance credits are earned at a rate of $0.15 for every dollar of sales generated using the additional capacity. You can check your performance credits balance in Capacity Manager.
Q: What happens if I don’t use all of the additional capacity?
A: If you don’t use all of the additional capacity, you’ll still be charged the full reservation fee. There are no refunds for unused capacity.
Q: Can I cancel my request after it has been granted?
A: No, you cannot cancel your request once it has been granted. You’ll be responsible for paying the reservation fee for the entire specified period.
Q: What happens if my sales don’t generate enough performance credits to offset my reservation fee?
A: If your sales don’t generate enough performance credits to offset your reservation fee, you’ll be responsible for paying the difference.
Q: When will I have access to the additional capacity from my granted limit increase request?
A: The additional capacity from your granted limit increase request may be available to you for up to one month before the requested period. This means that you can start creating shipments to send inventory to Amazon fulfillment centers so it can be pre-positioned in their network during the period you requested.
Q: Why might I have access to the additional capacity before the requested period?
A: Amazon may make additional capacity available to you early so that you have more time to prepare for the upcoming period. This can be especially helpful if you are expecting a surge in demand for your products.
Q: How do I know if I have access to the additional capacity early?
A: You will be notified if you have early access to the additional capacity. You can also check your capacity limits in Capacity Manager to see if your limit has increased.
Q: What if I don’t need the additional capacity early?
A: If you don’t need the additional capacity early, you can simply wait until the requested period to start sending inventory to Amazon fulfillment centers. Your additional capacity will still be available to you for the entire requested period.
Q: What is the benefit of having early access to the additional capacity?
A: Having early access to the additional capacity can give you several benefits, including:
- More time to prepare for the upcoming period
- The ability to avoid stockouts
- The ability to take advantage of promotional opportunities
Q: Will I still be charged the reservation fee if I don’t use the additional capacity?
A: Yes, the reservation fee is non-refundable and will be charged even if you don’t use the entire allocated capacity. This is to ensure that Amazon’s fulfillment centers are used efficiently and that there is a fair allocation of storage space among sellers.
Q: What happens if I don’t use the additional capacity and my performance credits don’t offset the reservation fee?
A: You will be responsible for paying the remaining balance (your reservation fee minus performance credits). This could negatively impact your cash flow and profitability.
Q: What is the Inventory Performance Index (IPI) score and how is it affected by unused additional capacity?
A: Your IPI score is a measure of your inventory performance and is used by Amazon to determine your eligibility for various benefits, such as additional storage capacity. Requesting and receiving additional capacity that you don’t use can negatively impact your IPI score.
Q: How can I avoid paying the reservation fee for unused additional capacity?
A: Here are some tips to avoid paying the reservation fee for unused additional capacity:
- Accurately forecast your inventory needs: Before requesting additional capacity, carefully forecast your inventory needs based on historical sales data and seasonal trends.
- Consider using MCF (Multi-Channel Fulfillment) orders to pad your stats: MCF orders allow you to fulfill orders directly from your own warehouse, which can help you increase your historical sales and boost your chances of getting approved for additional capacity.
- Create deals for the next two months: Amazon will take projected demand into account when determining capacity allocations. Creating deals for the next two months can demonstrate increased demand and make you a more attractive candidate for additional capacity.
- Utilize Amazon’s ASIN-level forecasts: Amazon provides ASIN-level forecasts in Seller Central, which can help you set realistic sales targets when padding your stats.
- Monitor your inventory performance regularly: Regularly review your inventory performance metrics, including your IPI score, to ensure you are using your capacity efficiently and avoiding unnecessary costs.
Q: Can I use Capacity Manager to request an increase to my MCF capacity?
A: No, Capacity Manager is specifically designed for increasing your FBA (Fulfillment by Amazon) capacity. MCF capacity is allocated separately and is based on your MCF usage.
Q: How does Capacity Manager affect performance credits for MCF sales?
A: Only FBA sales are considered when calculating performance credits. MCF sales do not contribute to performance credits. This means that even if you use additional capacity to fulfill MCF orders, you will not earn performance credits for those sales.
Q: Will my MCF capacity be affected by changes to my FBA capacity limit?
A: No, your MCF capacity is determined independently of your FBA capacity limit. You will continue to receive incremental MCF capacity based on your MCF usage.
Q: Where can I view my total capacity limit, including MCF capacity?
A: Your total capacity limit, including MCF capacity, is shown in the Capacity Monitor. MCF capacity is published monthly when capacity limits are announced.
Q: Why does it take time for changes to my MCF limits to be reflected in the Capacity Monitor?
A: Changes to your MCF limits are processed and finalized before the next monthly announcement. Therefore, it may take some time for updated MCF capacity information to appear in the Capacity Monitor.
Q: Can I request a limit increase for Dangerous Goods (Flammable/Aerosol) storage types through Capacity Manager?
A: No, Capacity Manager does not support requests for additional storage space for Dangerous Goods (Flammable/Aerosol) products. This is due to the stringent regulations and safety precautions surrounding the storage and handling of hazardous materials.
Q: How can I request a limit increase for Dangerous Goods (Flammable/Aerosol) storage?
A: To request a limit increase for Dangerous Goods (Flammable/Aerosol) storage, you need to contact Amazon Selling Partner Support directly. They will review your request and provide further instructions or guidance.
Q: What information will I need to provide when requesting a limit increase for Dangerous Goods (Flammable/Aerosol) storage?
A: When contacting Selling Partner Support, be prepared to provide detailed information about your Dangerous Goods (Flammable/Aerosol) products, including:
- Product descriptions and specifications
- Safety data sheets (SDS)
- Storage and handling requirements
- Shipping and transportation regulations
Q: What factors will Amazon consider when evaluating my request for a limit increase for Dangerous Goods (Flammable/Aerosol) storage?
A: Amazon will thoroughly assess your request based on various factors, including:
- Your compliance with hazardous materials regulations
- Your historical sales performance for Dangerous Goods (Flammable/Aerosol) products
- Your available storage space and handling capabilities
- The overall demand for Dangerous Goods (Flammable/Aerosol) storage
Q: What are the potential outcomes of my request for a limit increase for Dangerous Goods (Flammable/Aerosol) storage?
A: Depending on the evaluation of your request, Amazon may:
- Approve your request and grant you additional storage space for Dangerous Goods (Flammable/Aerosol) products
- Request further information or documentation to support your request
- Deny your request due to safety concerns or insufficient justification
