Abstract: The invention relates to optimizing platform conversion through dynamic management of capacity in an ecommerce environment. The invention commences when a request is received from a user to place an order for an item in the ecommerce environment. The request is then transmitted to a server. A first buying cohort with an associated first prioritization value is then identified. A utilization value of a first capacity reservation for the identified first buying cohort is then determined. Thereafter, if the determined utilization value of the first capacity reservation is more than a predefined threshold value, a extraction capacity value from at least one second capacity reservation is dynamically assigned to the first capacity reservation based on a dynamically forecasted demand and a risk factor associated with at least one second capacity reservation.