The Inbound Placement Fee Is Live: How to Keep It Low

Amazon’s inbound placement service fee went live on March 1. Every FBA shipment you create now asks you to choose how your inventory is split across Amazon’s warehouses, and each option has a different fee. Choose without thinking and you can pay much more than you need to.

Here is how the options work and how to keep your total inbound cost as low as possible.

The placement options

When you create a shipment in Send to Amazon, you will see options like these:

• Amazon-optimized splits. Your shipment is split across several warehouses as Amazon recommends. Usually no placement fee, or the lowest one.
• Partial splits. Fewer locations, with a placement fee.
• Minimal shipment splits. As few locations as possible, sometimes one. The highest placement fee per unit.

The fee depends on product size and weight and the option you choose. Amazon shows the fee for each option before you confirm.

Look at total cost, not just the fee

The placement fee is only part of the cost. Splitting a shipment means paying to send boxes or pallets to several places. Sometimes that extra freight costs more than the fee you saved.

For every shipment, compare:

1. Placement fee for each option.
2. Your freight cost to each set of destinations.
3. The total of both.

Choose the lowest total, not the lowest fee.

Ways to lower inbound costs

• Use Amazon’s partnered carrier where it is cheaper. It can make multi-location shipments more affordable.
• Ship more units per shipment. Larger shipments spread fixed costs over more units.
• Use a 3PL near Amazon’s network. Send from a warehouse close to several fulfillment centers to reduce the cost of splits.
• Review packaging. Smaller, lighter products cost less to place. A packaging change can also move you to a cheaper FBA size tier.
• Plan ahead. Rushed shipments often end up using the most expensive option.

Update your margins

Add the placement fee to your landed cost per unit. Then check your profit and break-even ACoS for each product. We explained all the 2024 changes in December’s post on Amazon’s 2024 fees.

Balance it with the low inventory fee

From April 1, the low inventory level fee starts. If you try to save on placement fees by sending fewer, bigger shipments less often, you might run low and trigger that fee. Plan shipments to keep steady stock levels.

The bottom line

The inbound placement fee rewards sellers who plan shipments carefully. Compare total cost for every shipment, use partnered carriers and 3PLs where they help, and keep inventory steady. If you want help reducing your FBA costs, see our catalog and account operations service or request a free audit.

FAQs

When did the Amazon inbound placement fee start?

It started on March 1, 2024 for FBA shipments in the US.

How can I avoid the inbound placement fee?

Choosing Amazon-optimized splits usually means no fee or the lowest fee. Compare it with your extra freight costs to see which option is cheapest overall.

Is it cheaper to send everything to one warehouse?

Not always. The single location option has the highest placement fee. Compare the fee with your freight savings before choosing.