WARNING DANGER new LTL/FTL inbound placement service charges cost 2x UPS
WARNING DANGER new LTL/FTL inbound placement service charges cost 2x UPS
56 replies
Seller_mFUNUCCYB0cok
Just another thing to make Amazon a 100% all Chinese seller platform! That is what Amazon really wants. They just need to admit it.
Seller_y6TKQIKDJDuTv
The only thing and the best thing we can do is to increase our selling prices. I just increased my prices. Thats the only thing we can do. Then lets see if Mr. Bezos can compete ( screw up sellers in the expense of customers)
Seller_ctlHhuYQK8UHO
I chose to send to 5 locations and it cost me nothing extra. Yes, shipping to more distant locations is more money, but nowhere near double.
I sent out 86 cases of product today and averaged about $7 per case, which is fairly good. I think the average broke down to 12 cents per unit since the cases contain multiple units.
FWIW, we don't ship LTL/FTL... we use parcel through UPS. Maybe that is not an option for everyone else but it works best for us not having to wait on and load trucks with pallets.
Seller_Qbd0RsfZFEZBY
Using UPS to send in inventory is an option for some of our SKUs but others are to big or heavy. We used to be able to send in ~40 of these heavier bigger cases on a pallet for $250. Now if we manifest 40 of these cases they are split on 3 different pallets. Sending a pallet in has a base rate of ~$200 plus the dimm weight so that how they are getting to be $700+ with the new system. If a single FC is selected then it adds ~$200 in placement fees and the pallet is going cross country, so still $700+
Bryce_Amazon
Good morning @Seller_Qbd0RsfZFEZBY,
I appreciate your effort to educate the changes that have been made via the inbound placement fee and I understand the frustration it has caused. As previously mentioned in the fee change announcement, these changes were made to enable more efficient use of the Amazon network. To enable more efficient use of the network, Amazon will begin charging separately for inbound and outbound activities. The lower outbound fees go live on April 15th, the same day the first inbound placement fees will be charged:
"On average, we will decrease FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit. These fees will apply starting April 15, 2024, the same date that the first inbound placement fees will begin to be charged. Products priced below $10 will continue to have an additional $0.77 discount on per-unit fees."
Thank you again for your candid feedback, if I will reply to you here with any and all updates I receive related to these launches.
- Bryce
Seller_Qbd0RsfZFEZBY
@Bryce_Amazon
Good news, since the new inventory placement fee rollout some items have been corrected.
The "east" FC option for us is back to being CLT2 instead of NJ. THis will bring the cost back down to size. Additionally I found that if I use the "All FBA SKUs' menu instead of the send/replentish inventory menu I can manifest a multi SKU pallet (unable to merge shipments since the rollout but in contact with support)
When I manifest a full pallet (be it multi or single SKU) and send to a single FC the cost is down to a much more reasonable ~$460 a pallet instead of the $700+
Seller_1NP9kHDcKeQLk
Aren't inbound placement fees being charged now? They are showing up for every inbound shipment I setup. If they're supposed to start on April 15th then why are they already active?
Bryce_Amazon
Great question @Seller_1NP9kHDcKeQLk!
You’ll be charged an FBA inbound placement service fee 45 days after your shipment is received. With the fee going live on 3/1, the earliest date you would receive the charge is 4/15. You can track your charges as follows:
- Go to Payments dashboard.
- Click the Transaction view tab, then select Service fees in the Transaction type drop-down menu.
- Click Update to view your FBA inbound placement service fee per shipment.
- Locate your shipment ID under the Order ID field in the transaction view. You will be able to view the total fee charges on a shipment level.
- Bryce
Seller_1NP9kHDcKeQLk
OK, I understand what you're saying about when the new rate charges will be taken from our accounts.
Will the inbound rate algorithm be fluxuating over the next few weeks while Amazon gets it to the correct amount? Or are those rates set as is for now. I ask because I'm seeing some rates for certain combinations of shipments that don't seem to make much sense. In the past we were able to know within a few percentage points what our inbound shipping was going to cost. Now, we have to play with combinations of ASIN's mixed together and larger numbers of boxes in a shipment in order to get the rates lower and are still paying significantly more. Will the rates be stable as is? Or can we expect them to change continually?
Seller_UbCHPaoYRj58L
Can you do something about the increasing Chinese seller bashing? We incur these costs as well as any USA seller.
Seller_rr45B3vDsauwa
So the placement fee is what .20 to $6.00, but your dropping fba fee's from .20 to .60. Do you see the difference in the math? The tiny items in the 20 cents range I totally get, but anything that isn't tiny the math doesn't even remotely add up. This is also just talking about the placement fee vs drop in fba fee. If you calculate that the normal shipping rates went up almost 100% ALONG WITH the placement fee then it starts to put things into perspective. this isn't evene mentioning the low inventory fee that is about to hit us as well.
Bryce_Amazon
Greetings @Seller_UbCHPaoYRj58L,
Thank you for your comment! We will moderate any comments that are against our community guidelines, please report them using the "Flag post for review" option on any comment you see. Thank you again.
- Bryce
Seller_UjIpKYArUEdrs
Why are the clowns running the circus? Every single change amazon has made in the last 3.5-4 years has made selling harder.
Seller_0q7vFacBrrF92
Seller_SJRMV3s4mNrFA
In related news, Jeff Bezos has regained the title of richest man in the world
Seller_Qbd0RsfZFEZBY
Oh pish posh, its net worth, not "real dollars" lol
Bryce_Amazon
Greetings @Seller_1NP9kHDcKeQLk,
The rates are set as is for now, according to the FBA Fees News announcement from a few months ago (linked in my initial reply). If that changes at all, I will let you know. @Seller_Qbd0RsfZFEZBY did mention in this comment that they have seen some changes in logic for location placement (shifting the FC back to CLT2, resulting in lower costs), so you may experience similar changes.
- Bryce