Amazon Tightens Warehouse Space Amid Tariff Stockpiling

As U.S. merchants rush to stockpile inventory ahead of looming China tariffs, Amazon is imposing strict new limits on warehouse space, mirroring its pandemic-era inventory caps. The move is hitting sellers hard—some, like toy merchant Mason Beck, saw their fulfillment center capacity slashed by 75%, blocking them from restocking and costing them tens of thousands in lost sales. Amazon, wary of warehouse gluts, is urging sellers to discount, liquidate, or store goods elsewhere, even as July’s Prime Day approaches. With tariff-driven supply chain instability and sellers unable to move goods from Amazon Warehousing & Distribution to fulfillment centers, the retail giant’s capacity clampdown risks squeezing the very businesses that drive over 60% of its marketplace sales.