Overview
Sending inventory to Amazon FBA (Fulfilled by Amazon) requires specific packing and placement options to ensure items reach fulfillment centers quickly and accurately. Properly prepared shipments reduce delays, avoid additional fees, and help ensure that your products become available for sale on Amazon as soon as possible.
This guide will help you understand Amazon’s packing and placement requirements, so you can choose the right options for your business.
1. Packing Options
While creating Inbound shipments to Amazon FBA, multiple packing options can be presented by Amazon depending on SKUs that can be packed together. Each packing option represents a set of SKUs that can be packed together. SKUs that cannot be packed together go into different pack option. For example, SKUs that are classified as dangerous goods cannot be packed with other SKUs, because dangerous goods SKUs are shipped to special fulfillment centers that can receive them safely. Other factors that determine which SKUs can and cannot be packed together include SKU weights and dimensions, prep and labelling requirements, and barcode requirements.
Each of these packing options can have discounts or fees associated with them. Also, each option can be limited to a subset of all possible shipping modes. You are required to review and select the appropriate packing option.
2. Placement Options
Starting on March 1st, 2024, Amazon began implementing an FBA inbound placement service fee for standard and large-bulky-sized items. This was created to reflect the cost of distributing the sellers’ inventory to fulfillment centers close to buyers.
Additionally, Amazon will now charge separately for both inbound and outbound requirements. However, they are lowering their outbound fees because of this.
Amazon is allowing to choose a minimal split option, meaning you can send to less warehouses, however we will be paying a hefty per-item fee if you choose to opt into that.
Inbound Placement Split Options
- Amazon-optimized shipment: With this option, you send inventory to multiple locations, estimate a minimum of 4 warehouses per shipment. This is the option that will give you the best chance at paying no additional fees.
- Partial shipment: With this option, you will send inventory to fewer locations and pay a fee per item in the shipments. You are then able to pick your inbound region. It is important to note that Amazon themselves say any shipments going west will incur additional fees.
- Minimal shipment splits: With this option, you send inventory to minimal locations and Amazon will then spread the inventory around to their other warehouses, this will be an additional per item fee for every item in your shipment. You are then able to pick your inbound region. It is important to note that Amazon themselves say any shipments going west will incur additional fees.
The availability of these inbound placement options is based on several factors, including the product types and quantities that you have in your shipping plan, your existing inventory levels across our network, and the location of customer demand.
When you create a shipping plan, you’ll see a fee estimate for each available inbound placement option. You’ll be charged the FBA inbound placement service fee 45 days after your shipment is received, based on the inbound location and the quantities received.
3. Frequently Asked Questions
Q: Can I change my options after creating a shipment?
A: No, packing and placement options are set when creating the shipment and can’t be modified afterward. Choose carefully based on your current shipping and distribution needs.
Q: What can I do to reduce or avoid the inbound placement service fee?
A: If your shipping plan qualifies, you can use the Partial shipment splits option or the Amazon-optimized shipment splits option. With these options, you pay a reduced fee or no fee for sending your inventory to multiple inbound locations across our network. Inbound placement service fees may be generally lower for shipments sent to locations outside of the Western part of the country.
Q: Where can I find the actual FBA inbound placement service fee that I was charged after my shipments were received?
A: You’ll be charged an FBA inbound placement service fee 45 days after your shipment is received. 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.
You can also use the FBA inbound placement service fee downloadable report. This report will show the inbound placement service fee charges on shipping plan, shipment, and SKU levels, and will help you identify if your shipping plan was compliant. To navigate to your report, follow these steps:
- From the Reports drop-down menu, select Fulfillment.
- Under Payments to the left of the page, click FBA inbound placement service fees.
Q: What will happen to the FBA fulfillment fee rebate incentives that are awarded from FBA Multiple Destinations or Amazon recommended shipment options?
A: These programs will end on February 29, 2024. Shipping plans that are created on or after March 1, 2024, will no longer be eligible for fulfillment fee rebates for shipment splits. All eligible shipping plans created before this date will still be awarded fulfillment fee rebates per program terms.
Effective March 1, 2024, you can use the FBA inbound placement service and select your preferred inbound placement option during shipment creation.