FBA : Total placement fees. Can someone explain to me how AMAZON is getting away with this new extra charges?
Or maybe I'm not understanding this correctly?
Before I used to pay $8.14 to send my 15lbs FBA box to FBA, now is $31.83? because of extra Placement fees? what's next? packaging and customer service fees?
Someone, please explain to me with all the chargers and fees Amazon charges to 3rd party sellers, how FBA makes sense to a US based seller, because the way I see it, unless you are on the other side of the world, where your currency is way below than the US $ this FBA thingy doesn't make sense anymore.
69 replies
Seller_Qbd0RsfZFEZBY
Packaging is part of the FBA fees. It used to be called "pick and pack"
Customer service fees are built into various charges like return processing.
As far as the inventory placement fee. Do you expect Amazon to transport your items for free?
Seller_7LrAV0m5llaI7
No, they already have packaging fees. Next is Low inventory FBA fees.
Seller_RhdbLYBpzig4e
If it isn't blatantly obvious already, Amazon is phasing FBA operations down. They want Small & Light only. They don't want to deal with FBA over 1lb. And to be quite honest, their internal defect rate with FBA is so bad, I don't blame them. The media calls it a "competency crisis". Whatever it is, it's forcing Amazon to take a second look at FBA. Either move FBM like they want you too, or slowly bleed out due to ever increasing fees. Amazon want's to be a logistics company. NOT a fulfillment company.
Dominic_Amazon
Hi @Seller_o8UNWX1dLKfkW,
Dominic from Amazon here, want to provide some additional info.
You are able to choose Amazon split shipments if you qualify and avoid the fee entirely.
When you create a shipping plan, you can select one of the following inventory inbound placement options:
- Minimal shipment splits: You can send your inventory to the minimal number of inbound locations, generally to a single location, and we will spread inventory across our network on your behalf, for a fee. The fee may vary by inbound location—for example, there may be higher fees for shipments sent to locations in the West versus other parts of the country.
- Partial or Amazon-optimized shipment splits: Send your inventory to multiple inbound locations yourself for a reduced or no fee. The reduced fees will depend on the number of shipments and inbound locations that you send your inventory to. For instance, if your shipping plan qualifies, you can select the inbound placement option to send your inventory to the optimal number of inbound locations recommended by Amazon, generally four or more locations, and pay no fee. If you select the placement option in which you send your inventory to a partial number of inbound locations, generally two or three, you will pay a reduced fee.
Inbound placement options will be provided when your shipments qualify. Factors that affect the number of inbound options include the following:
- Whether your shipment includes a mix of standard-size items, non-standard-size items, or special handling categories
- Whether each box contains the same mix and quantities of SKUs
- Quantities and number of boxes for each item
- Geographical demand
To maximize the number of inbound options, try the following:
- Create separate shipments for standard-size items, non-standard-size items, and each special handling category
- Ensure that the item mix and item quantities are equal across all boxes
- Increase the number of boxes
Additionally one thing to note:
- 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. Go to the FBA fulfillment fee rates page for more details.
Please let me know if you have any questions.
Best,
Dominic
Seller_7LrAV0m5llaI7
Lol, They just opened up a brand new record breaking HUGE warehouse in Calgary, AB which ONLY deals with HEAVY/OVERSIZE/BULKY FBA items
Seller_rI7BZIczK8iAC
It seems you never READ the forum, nor Amazon's news on the main dashboard. This new fee was announced months ago and is subject of daily threads....
Seller_zinnr9HADdMb2
It might take a little time but we just shipped 5 identical 46lb boxes yesterday to 5 different FC. $84 in UPS shipping and $0 in placement fees (vs $84 UPS plus $186 in placement fees if we had not done this). The catch is though, we had to ship all "like" items out in all 5 boxes. If we shipped some odd products they did not take away the fee for use even though we shipped 5 identical boxes with identical ASIN and QTY per box. We sell a lot of sportings goods though so that helps us do some big shipments of like items. The other way to get out of this new fee is to use the Amazon Warehouses. That also will help you get out of the low or high inventory fees. We are going to start using this option soon with our high selling items.
**This will most likely not go away so you either will need to figure it out, pay the fees or stop selling. It is a disruptions but adapt or stop selling unfortunately....
I hope this post helps some.
Seller_Qbd0RsfZFEZBY
Inventory placement has been an option for the last 4 years. It has been a per unit cost to send to a single FC.
When a seller does not select this option inbound are directed to multiple FCs which incurs a higher carrier cost.
You have been paying for it, one way or the other.
Seller_A6A6GUNuplT1Z
It has been announced that Amazon is losing huge profits from competitors like TEMU.
In order for the Amazon shareholders to keep making huge profits, Amazon has to increase USA seller fees to not scare the stockholders with the shock of Amazon profit loss.
Thus, these erroneous seller fees will continue going up and up until the tipping point when the price sellers need to sell the product at to make a measly profit will be so extremely high on Amazon that consumers will be going to other online stores or brick-and-mortar stores to buy at a better price.
Amazon reign in ecommerce is waning.
