Ensuring that inventory is strategically placed in fulfillment centers across the country is crucial for faster and more cost-effective product delivery. Starting March 1, 2024, Amazon will introduce a new fee called the FBA inbound placement service fee for standard and large bulky sized products. This fee aims to cover the costs associated with distributing inventory to fulfillment centers closer to customers.
When creating a shipping plan, sellers have two options for inventory inbound placement:
- 1. Premium Service: Sellers can choose to send their inventory to a single Receive Center or Fulfillment Center, and Amazon will distribute it across their network for a fee. The fee may vary depending on the inbound location, with higher fees for shipments sent to the West compared to other regions.
- 2. Discounted Service: Sellers can opt to send their inventory to multiple inbound locations themselves, either at a reduced fee or no fee. The discount offered depends on factors such as the number of shipments and inbound locations.
The availability of Premium or Discounted service options is determined by various factors, including the types and quantities of products in the shipping plan, existing inventory levels across Amazon’s network, and customer demand locations.
When creating a shipping plan, sellers will receive a cost estimate for each available inbound placement option. The FBA inbound placement service fee will be charged 45 days after the shipment is received, based on inbound location and quantities received.
The fee structure varies based on the following factors:
- Item Size: Small standard, large standard, or large bulky.
- Weight: Small standard products have a maximum weight of 16 oz, while large standard and large bulky items are categorized based on their weight ranges.
- Inbound Placement Service: Premium or Discounted.
- Inbound Location: Fees vary depending on the location of the receive center or fulfillment center, with higher fees for shipments to the West.
For example, the fees for standard-size products range from $0.21 to $0.30 for small standard items sent via Premium service, while large bulky products weighing 5 lb or less incur fees ranging from $2.16 to $2.67 for the same service.
It’s important to note that Amazon may verify the weight and dimensions of products and will use its information to calculate fees if there’s a discrepancy with the seller’s information. Additionally, Amazon may update product measurements periodically.
*Rest assured, if amazon gets the measurements wrong, you can fight this. Barrel Aged E-Commerce has done this several times. You are able to ask for remeasurements up to 20 times per month! If you need help with this, schedule a meeting with us.
These adjustments in fees underscore Amazon’s commitment to optimizing its fulfillment processes and ensuring a seamless experience for sellers and customers alike.