Capacity Limit Decreased Significantly

Hello Amazon Sellers,

I'm writing to share my frustration and confusion regarding the recent restock limit reduction without any explanation or reason. Our capacity limit for the future month on February 25th showed an IPI score of 481 (now 459) but with the new update that rolled out in March, our capacity limit is 47% lower than it should be.

On February 16th, we sent 1000 units to Amazon FBA within the previous restock limit allowance. However, two weeks later we see that our current limit for the month of March is just 100 cubic feet for the inventory, even though we have never exceeded the limit allowance. We have been regularly checking the Inventory overview and saw no recommendation to reduce excess inventory. Furthermore, we currently do not have any products with excess inventory in FBA.

Despite all of this, we were surprised to find out that we have used 470% of our capacity limit (469.84 of 100.00 cubic feet) as of March 5th. It seems that the new capacity limit update has a bug and restricted our limit without any notice or reason. This is particularly concerning because our IPI score is in the green zone, yet our FBA limit has decreased.

To make matters worse, we are unable to request a capacity limit increase for March 1- March 31 as the request button is not active, despite Seller Support telling us to request the limit increase. We have also noticed confusing information in the Inventory Dashboard, such as the excess inventory percentage being 0.00%, yet we see an overage fee of $3,737.12 for March for a new product that we sent to Amazon in February 2023 within the previously allowed restock limits.

As a small family-run business, this is crucial for us, and we currently have a negative gross profit on this new product. We hope that Seller Support can revise this on a case-by-case basis as we believe this is an error on Amazon's end. We have read similar posts from other Amazon sellers who are facing a similar situation.

We are seeking advice on what we should do in this frustrating situation. We appreciate any insights or assistance that you can provide.

Best regards,

Alex