What is Amazon FBA Inbound Placement Service Fee? As the world is unfolding in the year 2024, Amazon has introduced another update in its inventory management and distribution system.
Amazon’s most recent fee updates have caused chaos among the seller community. It will be very difficult for the potential sellers to keep a vigilant eye on continually changing product costs. As a result, every aspect of Amazon sale’s section has become subject to fee-making.
In this informative blog, we will explore one of these controversial fees known as the FBA Inbound Placement Service Fee in detail.
The Amazon FBA Inbound Placement Service Fee is “ A fee imposed on the Amazon Sellers when they use Fulfillment by Amazon (FBA) service to deliver their goods across the different fulfillment centers of Amazon.”
This fee is executed when we generate a shipping plan on the Amazon Seller Center to deliver our products to one or multiple locations all over the country.
The Amazon FBA Inbound Placement Service Fee is a cost of logistics to facilitate the end user. It is in place from March 01, 2024, Friday.
Through this strategy, the product is ideally placed at the nearest possible location of the customer through this extra fee. The end goal of this initiative is to reduce shipping time without the lowest possible expenses.
Through this fee, the logistic planning will be in the limelight. The sellers have to embrace very quickly to satisfy their customers and to be profitable.
Three Split Options for FBA Inbound Placement Service Fee
Following are the three variables for this newly incurred fee.
➤ Amazon recommended shipment grouping
This option allows you to ship to varied destinations with a minimum limit of 4 shipment localities. So, you can approach multiple locations without paying any additional fee.
➤ Limited shipment grouping
As per this option, you can send shipments to a small number of locations and can pay per item. In other words, this option allows you to pick up your inbound regions.
➤ Lowest shipment grouping
Under this option, you will send your inventory to a limited number of locations and Amazon then send it to nearby localities. An additional fee is charged per item in your shipment. You can still be allowed to pick your inbound region.
Factors to Impact the FBA Inbound Placement Service Fee
The following variables can affect the cost of this fee structure in different ways.
➤ The Weight and Size of the product
The amount of this fee will be calculated based on the size and associated weight of the product. Therefore, the product can be small, large, or extra large (Bulky large ) with a definite weight consideration.
➤ Type of service
There would be two types of services in the realm of Inbound Placement Service Fee. Either it would be a premium service or a discounted service. In premium service, Amazon will be handling the distribution of the goods on behalf of you. This distribution will be monitored from a single location.
In the distributive service, the seller has to go for a self-distribution for chosen locations on a reduced or zero fee.
➤ Inbound localities
The fee will be charged according to the respective location under the Amazon shipment network. The delivery sent to Eastern London will entitle a different fee as compared to any other location.
➤ Differentiating the fee with Product type and size
The scheduled fee will be calculated by considering both the product type and size collectively. For instance, a small-sized item weighing 14 oz or less may be subjected to a fee of $ 0.24 per unit under the premium fee.
A bulky large item may suffer a fee of $ 3.14 under the premium fee calculations with the option of direct delivery to multiple locations.
How to multiply cost-effectiveness with FBA Inbound Placement Fee?
By adopting the following ways, the seller community can increase the effectiveness of this initiative.
➤ Reducing the Fee
To reduce these fees sellers should prefer to use the Discounted FBA Inbound Placement Service whenever it is available.
This strategy can substantially reduce or wipe out the fee by planning inventory for multiple destinations. It is specifically good for the locations external to Western USA.
Moreover, the sellers should also consider using the other services by Amazon such as, The Supply Chain Service by Amazon. This is an extensive service that can put a product in place without managing the network through Seller Central.
➤ Keeping in sight the FBA Inbound Placement Service Fees
By using different kinds of tools, the sellers can get multiple tire access such as Service fee details, transaction views, and payments dashboards to monitor the FBA Inbound Placement Service Fees.
Furthermore, the printed shipment reports can help you to analyze the fee in detail.
➤ Different impacts for different types of users
This new fee will not affect all Amazon service users equally. For instance, this fee will not impact the Amazon Warehousing and Distribution (AWD).
Likewise, Amazon Global Logistics users will also not be impacted by this fee. Because both these users are already subjected to the Optimal Inventory Placement Management Service Fee.
In conclusion, Amazon as an organization is bent on putting in place several additional fees on its platform. The hidden purpose of this steer is to keep away as many as sellers from the FBA Program. Therefore, to discourage the third-party sellers from the platform.
The outcome of this initiative depends on the next move of Amazon. Therefore, the potential sellers are advised to keep on checking the changing the fee structures to thrive well in the market.
