2024 FBA Inbound Placement Fee Changes.pdf

In 2024, Amazon is updating its FBA inbound placement fee structure, which will impact how sellers manage their inventory and shipping costs. This presentation will delve into the specifics of the new fee changes, offering insights on how these adjustments will affect your business. We will explore strategies to minimize costs and optimize your inventory placement, ensuring that you can maintain profitability while navigating these changes. Join us to gain a comprehensive understanding of the 2024 FBA inbound placement fees and learn practical tips for effectively managing your supply chain in light of these updates.

2. 2024 FBA Inbound
Placement Fee
Manuela Castaño

3. The FBA inbound placement service
fee is the cost of spreading inventory
across Amazon's fulfillment centers
close to customers.

The new inbound placement service
fees, impacts how sellers manage
their product distributions across
fulfillment centers. This initiative
streamline the flow of goods closer to
customers, optimizing the overall
efficiency of Amazon's network while
introducing an additional cost layer
for sellers.

4. Inbound Placement Options
Amazon offers two options for inbound placement for your inventory. You can choose between them when you create
a shipping plan in Seller Central. These fees are charged monthly to Amazon sellers to cover the expenses of
distributing their products to various fulfillment centers located close to customers across Amazon's network.

5. Strategies to Minimize
Inbound Placement
Service Fees
Optimize Case Pack Configuration
●Aim to pack the maximum number of units,
ideally 150 pieces or less and weighing under
50 lbs. This strategy not only minimizes the
per-unit shipping cost but also aligns with
Amazon's logistical preferences, thereby
reducing inbound freight costs.
Regional Considerations
●Avoid sending shipments to the West Coast
where possible, as Amazon often charges
higher fees for these locations.
Strategic Shipment Planning
●Full Pallet Shipments: For the most
cost-effective inbound shipping, consider
consolidating your shipments into full pallets.
Shipping less than this can significantly
increase per-unit costs.

●Ship at least 4 boxes to increase the chances
to be eligible for Amazon-Optimized Shipment
Splits.

6. Strategies to Minimize Inbound
Placement Service Fees
Adjustments in Seller Central
1.Navigate to the "Fulfilled by Amazon" settings.
2.Access "Inbound Settings" and select "Edit" under "Inventory Placement Service."
3.Opt for configurations that align with your logistical and financial strategies.

7. Impact on
Seller
Profitability.
Increased Costs and Lower Profits
1.Fulfillment Fee Increase: Fees for handling and shipping orders have
gone up by 20% to 30%, cutting into sellers' profits.
2.Dimensional Weight Pricing: Shipping costs for larger items have risen
due to a new pricing method based on package size.
3.Holiday Surcharges: Extra fees have been charged for orders between
October 15, 2023, and January 14, 2024, adding costs during the busy
holiday season.
Strategic Fee Management
1.Inventory Management: The new Low-Inventory-Level Fee encourages
sellers to keep the right amount of stock, affecting how they manage
inventory to avoid extra charges.
2.Size Tier Adjustments: New size categories for products mean sellers
need to package items efficiently to save on costs.
Long-Term Financial Planning
1.Analyzing Fee Trends: Amazon's fees have steadily increased over the
past three years, now taking up about 35% of an item's price. Sellers need
to monitor these trends for better financial planning.
2.Adjusting Sales Strategies: To cope with higher fees, sellers might need
to change their pricing, which could impact customer demand and
satisfaction.

8. Thank you!