New Placement Fees
These new placement fees...
Sending in about 900 units, sized at about 2.5 x 4 x .5 inches in size each. The shipment was split into 2 parts. The items are so small, that I can out them all in the same small box without issue. Prices were as follows..... what a joke.
Total placement fees:
$194.74
Total estimated shipping fees:
$16.07
You are telling me that it costs me $16.07 to ship these 2 boxes, but it is going to cost Amazon $194.74 to "redistribute" them to other warehouses?
And ya, the average reduction in FBA fees is $0.20. That is average for all standard sizes. The smalls like this are $0.16 I believe, which does not make up for the new placement fees. Plus those fees are upfront, so Amazon has our money no matter if the item sells or not and they get that money upfront to send to Bezos now and not later.
Just saying, placement fees for 2 small boxes of products should not be $194.74!!!
29 replies
Seller_aNryBfYO3DTmL
What would be helpful is for Amazon to tell us definitively how to pack to avoid the placement fee. If you can avoid the placement fee with the FBA fee reduction, you would see a 36 cent per unit decrease in fees. Otherwise using the placement service you are looking at a little over a 1% fee increase. Sucks but it's not the end of the world.
TaylorR_Amazon
Hey @Seller_cHU6XL6jaQChu, thank you for posting your feedback. Were you able to use the Partial shipment splits option or the Amazon-optimized shipment splits option? It's also recommended to increase the number of boxes where possible to maximize your inbound options.
Seller_Sram36TnVt73c
split these 900 units into 5 boxes in your workflow and the placement fees will disappear. Ship in 3 boxes and the placement fees are reduced.
Yes, you have to ship to 5 (or 3) locations, but overall it may save money over the $194.74 placement cost. You don't have to complete the workflow...just get to the point where it tells you how much it will cost to ship everything.
I am doing my first 5-box shipment this week.
Seller_9Uf78DYSZ2lcW
It seems that if you are shipping a single sku in the shipment and you have at least 4 cases being shipped, you might be able to get a plan without placement fees, IF that SKU is able to be shipped to multiple locations. My understanding is that some items can only be handled at certain receiving centers and therefor might not qualify for the split.
Seller_tapkYo7oMckfI
I think, their goal is to require all 3p sellers to store all of their product in Amazon warehouses. You become an Amazon employee/supplier, of sorts. Placement becomes a non-issue.
Seller_pI3kotsNmuQ8q
This is the new reality on Amazon. No way around it but either to switch to AWD or send to 4 locations.
