Originally published on December 26, 2023, updated June 17, 2024
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Amazon customers expect fast and free shipping, and Amazon takes that expectation very seriously. However, shipping items across the United States certainly isn’t cheap.
That’s why Amazon focuses on placing inventory in multiple fulfillment centers to deliver fast and at a lower cost. To assist with this goal, it introduced the FBA inbound placement service. Standard and large bulky-sized products are subject to the FBA inbound placement service fee as of March 1, 2024. We’ll explain how it works in this article.
When creating a shipping plan for inbound FBA products, you’ll choose from minimal, partial, or Amazon-optimized shipment splits.
Minimal shipment splits allow you to send inventory to fewer inbound locations (often a single location) for a fee. Amazon then decides how to place your inventory across the fulfillment network. The fee varies by inbound location.
You'll send inventory to multiple inbound locations for partial or Amazon-optimized shipment splits for a reduced fee and, in some cases, no fee. The fees are determined by the number of shipments and inbound locations you're sending inventory to. If your FBA shipping plan qualifies, you can use the inbound placement option to send inventory to the locations recommended by Amazon and pay no fee. You'll pay a reduced fee if you send your inventory a partial number of inbound locations.
Amazon will determine your fee based on the following factors:
The fee doesn’t apply to extra-large-sized products. See Amazon’s product size tiers for more details on size. Inbound placement service fees will typically be higher for inbound locations in the western part of the country.
Related reading: Amazon FBA Fees Guide
Inbound placement service options will be available based on product types, quantities, existing inventory levels across the Amazon Fulfillment Network, and customer demand location. When creating your shipping plan, you’ll see 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.
The FBA inbound placement service fee for a small standard product (maximum size 15x12x0.75 inches, weighs 16 oz or less) with a minimal shipment split ranges from $0.21-$0.30. The fee for a large bulky-sized product with the same shipment split (maximum size 59x33x3 inches, weighs up to 50 pounds) ranges from $4.85 to $6.00. You can see the full fee rate card in Seller Central.
If you’d prefer to use an end-to-end solution, Supply Chain by Amazon will place products within Amazon’s network on your behalf. If you’re using Amazon Warehousing & Distribution (AWD), managing inventory placement within Amazon’s network is an included service, so you won’t be charged the inbound placement service fee.
You may be charged inbound defect fees if your shipments are misrouted and/or don’t arrive within the timeframe specified by Amazon’s inbound policies. This charge covers the additional costs of redirecting, receiving, and processing your shipment. Shipments sent using the Premium or Discounted inbound placement service that don’t arrive at the correct locations or become abandoned are also subject to increased rates based on the actual inbound location(s) and the number of shipments received.
Amazon requires domestic shipments to arrive within 45 days of shipment creation. International shipments must arrive within 75 days of shipment creation. If you’re shipping to multiple locations, additional shipments must arrive within 30 days of the first shipment.
You can track your shipments on the Shipment Performance Dashboard and see additional details on the Inbound Performance Report in Seller Central.
Stay updated on the latest Amazon news, including fee updates, by subscribing to our blog.
Originally published on December 26, 2023, updated June 17, 2024
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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