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UPS and Placement Fees
Yesterday I shipped a box of 100 products for a shipping cost of $12.12. Today I am sending a duplicate of the same box, and now Amazon wants $23 for a placement fee and UPS wants $16 to ship it, for a total of over $40. For the same box of 100 items. Unsustainable to quadruple pricing overnight. Mods??? We do all the prep and no labeling is required at Amazon.
0 replies
Seller_yt84w3HTzdpes
honestly i didnt understand yet. almost 3 times what i was used to pay and im confused.. how should i where to send best as im from florida. normally was always going to NC and today went to NY. i dont know whats best> east, central or west? afraid to overload only NY because was the cheapest between all of them
Seller_8OBlcwWcbm8bS
Amazon is crazy !!!! shame on you Amazon !!! our profit are tiny, this is so disgusting, we are gonna quit this annoying platform
Seller_Don6m8XiYucKY
My inbound shipment fee doubled compared with last week. Paper thin profit margin, I think it's time for me to change to another platform or just quit online selling business.
Seller_lLkSD5pme4e7u
yeah.. I’m having the same problem.
Basically a new, unannounced, very substantial fee that quadruples the cost of getting the product to Amazon without any way of opting out.
Seller_Zc9Y2xguxQv8V
Yes similar thing here. UPS rate increased 30%, and placement fee added another 40%... so total shipping fee now doubled starting 3/1... I understand the new placement fee part... but not the ups rate change.
Seller_ICE4Ps48S5aso
typical.... mods ignoring the concerns of the sellers. Hi mods, we see you scrolling past
Seller_xdfD5vP1AarEp
The fees are too high now.
OMG.
AMAZON, PLEASE HELP.
:(
Seller_NTtgyr4S9sRAA
What's getting me right now is the shipment plans that don't even offer splits but because Amazon doesn't want splits I'm still supposed to pay the placement fee? The entire idea was it was avoidable and apparently it's actually not .
Seller_CPLXhdhPrfJdj
Yes, I saw the placement fees and it gave me a headache. Is there a way to opt out? This expense is uncalled for. What should we do? Amazon??? ??? WHY??? You are getting so much money from ads anyway!!! 2@@#E#$#$#$34#
Seller_1HpL7CRJjKtwD
SAME HERE!! Inbound Shipping Cost has doubled now thanks to this Placement Fees. This is too much Amazon needs to get rid of this and go back to the old way.
Seller_NxPuqak8YNJEF
yeah, amazon wants us to raise prices again. round up the fee increase. divide by low number of pieces sent per box. multiply by 1.3 to account for amazon "tax" (fee). add that number to ALL your existing prices and then don't worry about it anymore.
.
to explain...
.
(fee change x 1.3) / number of units shipped = price increase to each item
.
fee change = new highest fee - previous fee
number of units shipped, low average number, round down. like if you ship 100 to 150, use 100 here.
1.3 is a factor I use to absorb amazon fees to all the increases, because you know they will "tax" your price increases.
.
so with a fee increase of 74 and a low number of items shipped to FBA at 100:
74 x 1.3 = 96.2
96.2/100 = 0.96
raise all products in catalog by 0.96
.
fee increase of 25, 80 units shipments,
25 x 1.3 = 32.5
32.5 / 80 = 0.40625
raise all products in catalog by 0.41
Seller_fzvwUzWF9uktn
This new inbound placement fee is affecting the US sellers, but not the Chinese sellers. See the link below. Amazon gives Chinses sellers an option to send a shipment to one location and pay zero placement fee. They just pay $226.29 for shipping per pallet.
https://sellercentral.amazon.com/seller-forums/discussions/t/af8d6779-9354-4688-90d8-2d10fe5a4db2?postId=af8d6779-9354-4688-90d8-2d10fe5a4db2
Seller_8OBlcwWcbm8bS
this is the consequence of a monopoly !!! we call on the US government to investigate and get involved
Seller_Qbd0RsfZFEZBY
Wow, this pallet cost me $250 last week. It is now $771.78 due to the destination and placement charges.
Our only option now are West (cali) East (NJ), or Central (IL).
For the last 4 years our destination FC has been CLT2 for 90%+ of our inbound.
Seller_Qu2EbUJob4L1E
Completely unbelievable, 900 # pallet on Thursday that cost $160 to ship now cost over $500 on Friday. Small parcel, shipment from Thursday cost $42 to send, now $85. FBM is looking better as well as Walmart. Thanks for protecting your 3rd party sellers AMZ. It will be interesting to see what happens when the number of products being sold on the platform drops and the price to purchase doubles, what will AMZ shoppers think of that.
Seller_6pdCaLUeDUypQ
If you break your pallet up into smaller parcels (at least 4), the placement fee disappears. I'm not a huge fan of Amazon, but it does cost them money to distribute our product around the country. This will probably reduce costs and reduce the time after delivery before the product is available.
Seller_Qu2EbUJob4L1E
Breaking it down did not do much for the cost, there wasn't even an option to send it to 4 different warehouses to remove the extra fee, not to mention the increased shipping costs because of where they want me to send it. At most it sent it to 3 different warehouses and the cost of sending 3 different LTL shipments was even higher than sending to a single warehouse in Virginia, where I have never shipped too before. It's like they are trying to make sure you are getting punished if you do not follow their recomendations.
Seller_6hJubz0dAqgph
I can tell you....TEMU!! not a good time for amazon to be running off their sellers and causing those to stay a possible product price increase.
Seller_Sram36TnVt73c
it does become clear at tax time exactly how much of your blood goes to Amazon.
It's quite a bit.
Seller_WsdULSSIajCRd
I’ve tried this with my products, same SKUs and varied SKUs, the best I can get is partial shipments. I have yet to see a single Amazon Optimized No Fee shipment yet.
Seller_PgPO1RrhvIiPA
He/she meant 4 SPD shipments (small parcel delivery), not "pallet" which is for LTL/FTL.
Seller_Qhr2UYIcDPs0Z
Its a nightmare! Alot of sellers will go under with this new "Placement fee" Our margins are already razor thin this puts the the icing on the cake!
Seller_6pdCaLUeDUypQ
I only sell one product. I usually ship one box per day, but this placement thing showed up yesterday. I played around with it, and it seems 4 case-packed boxes eliminates the placement fee, and labels them for shipment to 4 different distribution centers. I'll have to adapt a bit to store 4 days of boxes instead of shipping them out daily, but I don't think it will increase my shipping cost much. Now I'm not getting the shipping rebate for sending to Virginia, but this is workable too. I'm not too concerned.
Seller_OeEP8kzuC6hbM
Placement Fees is too high, cost is 2x even more for FBA shipment
Seller_Qbd0RsfZFEZBY
I was finally able to get a merged pallet in for $464....Its more than it used to be but at least its not 700$+
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