Amazon FBA Fees: Latest Updates on 2024 Inbound Placement Service Fees
Navigate the latest changes in Amazon FBA inbound placement services for 2024
Amazon’s inbound logistics is one of their biggest expenses, particularly distributing products (aka fulfillment center transfer) across the nation. As we usher in 2024, let’s focus on the updated Amazon FBA fees that will affect how we manage inventory. This change, spearheaded by a need for efficiency, reflects Amazon’s continuous drive to optimize the distribution network, aligning seller shipments more closely with consumer demand, a shift that may have implications for your bottom line.
Rising Removal Order Fees
The fee for return to address or disposal services has increased from $0.97 to $1.04, effective since February 5th, 2024.
From Return/Disposal to Liquidation
Amazon’s recent fee increase for the return or disposal of Amazon FBA inventory introduces a new cost factor. This uptick, from $0.97 to $1.04, necessitates a calculated approach for high-volume Amazon FBA resellers.
Despite this change, it’s worth noting that liquidation removal fees are holding steady for Amazon FBA sellers. This financial reprieve offers an alternative for unloading excess inventory without incurring additional costs. Strategic removal can significantly reduce Amazon FBA expenses.
Reduced Fulfillment Costs Begin
Amazon has reduced its fulfillment fees by approximately $0.15, offering relief to Amazon FBA sellers. This decrease is accompanied by the introduction of a new fee related to the inbound placement service, which we will discuss shortly.
The End of Set Inventory Placement Service
As Amazon FBA sellers, we are facing a significant shift as Amazon’s Inventory Placement Service changes. Instead of sending stock to a single location, we now need to adapt to a more flexible and variable approach. This change will require us to adjust our strategies to accommodate the fee variations, which will be crucial for successful Amazon FBA operations going forward.
New Tiered Inbound Placement Fees
Amazon’s new update involves modifying the inbound placement service on Seller Central. Instead of setting a preference, sellers will be prompted to choose between minimal, partial, or Amazon-optimized shipment splits when creating a shipping plan.
This change aims to provide more control and flexibility for sellers in managing their inventory placement. Instead, when creating a shipping plan, you will be prompted to choose between minimal, partial, or Amazon-optimized shipment splits. This change aims to reduce Amazon’s inbound costs. However, you may need to pay these Inbound Placement Service fees, if Amazon does not offer the Amazon-optimized shipment splits option.
Fee Structure Based on Item and Weight
The inbound placement service fee will vary based on the following:
- Item Size: Fees differentiate between small standard-size, large standard-size, and large bulky Amazon FBA items.
- Weight: Unit weight for small standards. The greater of dimensional weight or unit weight for large standard and large bulky.
- Number of Shipments: Minimal, Partial, or Amazon-optimized shipment splits.
- Inbound Location: The fee range will vary by inbound location (that is, the location of the fulfillment center). For instance, there may be higher fees for shipments sent to inbound locations in the West versus other parts of the country.
Conclusion
Being an Amazon FBA seller can be challenging. It is crucial to stay informed about the latest news and be adaptable to changes. Effective inventory management is key to success in the lucrative business of Amazon FBA.
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