Comments on: Amazon Rolls Out Biggest and Most Complex Fee Increase Ever https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/ Start and Grow Your Ecommerce and Amazon Business Tue, 05 Mar 2024 17:51:42 +0000 hourly 1 https://wordpress.org/?v=6.5.3 By: Dave Bryant https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-77494 Tue, 05 Mar 2024 17:51:42 +0000 https://www.ecomcrew.com/?p=52981#comment-77494 In reply to Dairah.

By paying their placement fees :)

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By: Dairah https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-77410 Mon, 04 Mar 2024 10:21:47 +0000 https://www.ecomcrew.com/?p=52981#comment-77410 Hi Dave, how can we avoid this? How to select multiple locations for shipments?

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By: Kelly https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-71049 Tue, 12 Dec 2023 17:03:47 +0000 https://www.ecomcrew.com/?p=52981#comment-71049 Dave

I’ve been participating in a pilot program for over a year for FBA multiple destinations. I was offered a savings on fba fees in exchange for having Amazon choose to up to 3 different receive centers. This program also includes differentiation between products that are shipped as individual or packed units and products that are case packed. For example, if I was to have 144 single widgets amazon would take those 144 units and split up into three distribution centers. However, if that 144 units was in a case, that case would be kept together and shipped to one distribution center.( Will these now be charged a placement fee). I’m curious on how these new fees will be affected by case packed units versus non-case packed units. And also whether LTL units shipped to the same distribution center would incur the fee? I’ve also found that in the multiple distribution scenario 144 single units may end up with 134 one box 6 in another box and 4 in the last box. And if you recall a couple of years ago, there was a emphasis on, ensuring that all shipments created were actually shipped. If you cancel those smaller shipments than Amazon would identify those and that and potentially levy some sort of inbound shipping problem for you.

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By: Dave Bryant https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-70694 Wed, 06 Dec 2023 22:55:19 +0000 https://www.ecomcrew.com/?p=52981#comment-70694 In reply to Jen.

It’s taken from Amazon themselves and I just double checked and it says 3″ (and no mention of it being something else anywhere). I suspect it is a typo from them though. We will update it once they update it.

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By: Jen https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-70691 Wed, 06 Dec 2023 19:51:33 +0000 https://www.ecomcrew.com/?p=52981#comment-70691 Is there a typo in the first graphic (“Placement Fee”) for the dimensions of the new “Large Bulky Size?” It says 59 x 33 x 3 in, but I assume that last 3″ in supposed to be thirty-something inches?

Thanks!

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By: Dave Bryant https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-70686 Wed, 06 Dec 2023 16:30:24 +0000 https://www.ecomcrew.com/?p=52981#comment-70686 In reply to Dave King.

Yes, inventory placement is a thing now but it has effectively never been a thing for standard size items as they almost always go to one FC.

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By: Dave King https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-70650 Wed, 06 Dec 2023 02:13:04 +0000 https://www.ecomcrew.com/?p=52981#comment-70650 You guys have the placement fee wrong.

You only pay this fee if you opt-in. This program exists right now, but its opt-in. It will soon be toggleable during shipping creation. You will still be able to opt out of paying it and nothing will change.

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By: Dave Bryant https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-70639 Tue, 05 Dec 2023 21:45:15 +0000 https://www.ecomcrew.com/?p=52981#comment-70639 In reply to Lenny Lee.

Yes, but inventory placement has effectively never been a thing for standard size items, whether shipping partnered carrier or AGL. Most things would get locked to an FC.

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By: Lenny Lee https://www.ecomcrew.com/amazon-fba-big-fee-increase-2024/#comment-70638 Tue, 05 Dec 2023 20:41:39 +0000 https://www.ecomcrew.com/?p=52981#comment-70638 The placement fee is really a modification of FBA’s Inventory Placement Service. IPS is where you can ship all your products into one FC, and Amazon will then redistribute inventory to other FCs to ensure sufficient placement nationwide. Right now, IPS is a flat 30 cents per items. Right now, you don’t have to use IPS, but if you don’t you often need to split up your shipments to multiple FCs. The wording of the 2024 fees seems to suggest there will still be a similar option. You can use what they are going to call the “Discounted Service” option when you create a shipping plan, send shipments to multiple FCs, and you will pay a reduced fee or no fee.:

When you create a shipping plan, you can select one of the following inventory inbound placement options:
• Premium service: You can send your inventory to a single receive center or fulfillment center and Amazon will spread inventory across our network on your behalf, for a fee. The fee may vary by inbound location, with higher fees for shipments sent to locations in the West versus other parts of the country.
• Discounted service: Send your inventory to multiple locations yourself, for a reduced fee or no fee. The discount will depend on several factors, such as number of shipments and locations you send your inventory to.
The Premium or Discounted service options will be available based on several factors including product types and quantities 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 cost 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 location and quantities received.

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