When Amazon Hits Capacity, Your Sales Don't Have To Stop
How a board game publisher used FBM fulfillment to prevent holiday stockouts, save costs, and maintain seller ratings during Q4 surge
FBA Capacity Limits During Holiday Season
A growing board game publisher was already working with Initiative Distribution for trade show fulfillment and international shipping. But in early November, they hit a problem that threatens every Amazon seller: FBA storage capacity limits.
With the holiday season approaching and strong post-Cyber Monday sales creating even more inventory pressure, they faced a choice: watch revenue evaporate as FBA inventory depleted, or find a way to keep selling.
Amazon's forward inventory positioning is unmatched. No 3PL can replicate Amazon's network. But that doesn't mean you have to lose sales when Amazon hits capacity.
- FBA Capacity Limits
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Hit Amazon storage capacity limit in early November with holiday season approaching
- Post-Cyber Monday Surge
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Strong sales created inventory pressure exactly when Amazon was most constrained
- Risk of Stockouts
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Revenue at risk if FBA inventory depleted during peak holiday demand
- Seller Rating Pressure
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Delivery promises and seller metrics at stake during critical Q4 period
Instant FBM Switchover with Zero Downtime
The beauty of a hybrid FBA/FBM strategy is flexibility. Initiative was already holding bulk inventory for this client. When FBA inventory began depleting on December 12th, they simply turned on Fulfilled by Merchant mode.
Orders immediately started flowing to Initiative's pack stations. No setup time. No onboarding delay. Just continuity.
- Instant FBM Switch
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Turned on Fulfilled by Merchant mode-orders flowed immediately to Initiative pack stations
- Extended Operations
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Flexed to evening and weekend fulfillment to maintain delivery promises and seller ratings
- Zone-Optimized Shipping
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Tailored shipping choices by region and zone, responding to live delivery promise shifts
- Bulk Inventory Buffer
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Held inventory outside Amazon, replenishing FBA while fulfilling direct via FBM
The Operational Reality
Maintaining Amazon delivery promises from a single 3PL location requires operational commitment. Initiative flexed to evening and weekend fulfillment to hit delivery windows. Geographic positioning in West Virginia provided strong zone coverage for the eastern US population center. Carrier partnerships responded.
The client also gained something unexpected: real-time shipping optimization by zone. Instead of Amazon's fixed fulfillment fees, they could tailor shipping choices to actual delivery promise requirements, region by region.
Holiday Sales Protected, Costs Reduced
From December 12th through the end of the holiday season, Initiative fulfilled thousands of Amazon orders via FBM while the client's FBA replenishment shipments worked their way through Amazon's receiving queue.
Delivery promises were met. Seller ratings held. Revenue continued flowing during the most critical sales period of the year. And fulfillment costs were 10-20% lower than FBA.
- Zero Holiday Stockouts
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Thousands of orders fulfilled via FBM while Amazon restocked-no lost sales during peak season
- 10-20% Cost Savings
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Lower fulfillment costs vs FBA while maintaining delivery standards
- Seller Rating Protected
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Delivery promises met, seller metrics maintained through Q4 surge
- Continuous Sales
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FBM kept revenue flowing from 12/12 through end of season while FBA replenishment processed
The Honest Comparison
Amazon's speed advantage comes from forward inventory positioning. A 3PL shipping from a single location cannot match Amazon's 1-2 day delivery to every ZIP code.
But a 3PL can maintain delivery promises, protect seller ratings, and prevent stockouts. And when the alternative is no inventory at all, that's not a compromise-it's continuity.
Why This Works
- • Initiative holds bulk inventory as FBA buffer
- • FBM turns on instantly when FBA depletes
- • Sales continue during FBA restock delays
- • Operational flexibility protects seller ratings
- • Lower costs when FBM is active
Key Takeaways
FBA Capacity Limits Are Predictable
Amazon announces capacity constraints in advance. If you know limits are coming, you can plan. Holding inventory with a 3PL gives you options when FBA fills.
FBM Switchover Can Be Instant
If your 3PL already has inventory and integrates with your systems, turning on FBM is a configuration change, not a project. Orders flow immediately.
Operational Flexibility Protects Ratings
Amazon sellers live and die by delivery promises. A 3PL willing to flex operations (evenings, weekends, zone optimization) can maintain those promises from a single location.
Cost Savings Are Real
FBA convenience comes at a cost. When FBM is actively fulfilling orders, the savings add up-especially during extended periods like holiday restock delays.
Hybrid Strategy Is Not Either/Or
This isn't about replacing FBA. It's about preventing revenue loss when FBA capacity runs out. Use Amazon's network when you can. Use your 3PL when you must. Both can coexist.
About the Client
This board game publisher has been working with Initiative Distribution since mid-2025 for trade show fulfillment, international shipping, and now Amazon backup. Their business combines direct sales, convention presence, crowdfunding campaigns, and Amazon-all requiring different fulfillment approaches.
When FBA capacity became a constraint, they already had the infrastructure in place to pivot. The relationship made the difference.
Read their Gen Con case studyNeed an FBA Backup Plan?
If Amazon capacity limits are a constraint, let's talk about hybrid fulfillment. We hold inventory, you stay in control, and your sales don't stop when FBA fills up.