Amazons Double Wammy Inbound Placement Fees
I've been browsing through forums, taking in the widespread frustration regarding the new inbound placement fees, and the situation seems to be reaching a boiling point. It's astounding to see shipment costs skyrocket from $8 - $14 per box to an exorbitant $90 - $140. However, I've noticed a significant piece of the puzzle that many seem to be missing. It's not just about the increased fees for placements; there's an additional layer where we're being penalized for failing to maintain sufficient stock levels to meet demand. This essentially forces us to increase the frequency of our shipments to ensure our inventory levels are adequate. Failure to do so results in per-unit charges. Amazon's strategy seems to be pushing us into a corner where we're compelled to send more units, all the while increasing the costs for placement.
This change is particularly impactful for those of us with one or two ASINs teetering on the edge of not meeting the required inventory levels, prompting a need to replenish with a SPD shipment.
As a potential workaround, I'm considering sending a larger shipment to Amazon's storage and distribute. This would allow Amazon to automatically pull inventory as needed, potentially helping to circumvent these fees. Or just switch to FBM.
PS: if Amazon doesnt want us to use their warehouses... their doing a good job at sticking it to small businesses
84 replies
Seller_z0STTH7Les03R
I started doing more FBM but then I get a Negative feedback, as the customer said for me to send her tracking over, for a item she was returning, I guess she lost her tracking which I couldn't control since it wasn't anything I shipped, and Amazon wouldn't remove the Feedback, so now I am terrified to use FBM, 90 percent of my customers don't give me feedback so that one really affected me and I have been with Amazon for a decade so I feel I am in a situation now I must send things in since they won't even remove a question that was asked on my Feedback. Years ago....they would of removed that....they truly helped us.....
Seller_Ha6JyVvDK6Ybs
Amazon is a business that makes money on transaction and now they created more transactions on FBA then once you send more units magically an issue with listing will occur stranding inventory then forcing a removal or disposal total racket.
Seller_LaR0wzinE1rAd
I really think the reason behind all of the extra fees goes a lot deeper than we all imagine as sellers...
I think Amazon wont pay employees at the fulfillment warehouses enough for them to care about your products and your investment.
No one talks about the amount of substance abuse and violence that goes on in the fulfillment centers, but there are news articles about it... there are tons of Amazon FC employees on Reddit talking about what they do at/in the warehouse while they're on the job. They're being allowed to use cannabis while working and handling your inventory that you pay Amazon so much to handle for you.
They stopped screening people for cannabis use in June 2021. Coincidently when things really started going downhill with FBA.
Maybe if Amazon hired less people, but competent people that don't do drugs and that cared about their job (because they pay them more?) then we wouldn't have so many issues with FBA.
Maybe if Amazon doesn't want small businesses to send their their products, they should just come out and tell small businesses they are no longer welcome in FBA instead of nickel and dime us all until we have nothing left.
Google this Reddit post called "Don't Get Caught Amazon FC"
Seller_PgPO1RrhvIiPA
Some of us are opting to use this method for FBA SPD.
Seller_t2dVZmQv9FkEA
The inbound placement fee will likely result in a surge in the overall platform sales price. Being assured of its delivery services, Amazon has taken the bold step of implementing this change. Amazon believes that TEMU, SHEIN, and TIKTOK, among others, will not pose a significant threat to its business. Nevertheless, there may be occasions where Amazon's overconfidence could prove detrimental. The unfolding of events in this situation remains to be witnessed.
Seller_HOFRDxJYxGwRs
You mentioned the penalty when our listing does not meet the required inventory level. I haven't seen that, can you give me the link pointing out that statement? If so, it's crazy
Seller_rr45B3vDsauwa
called the low inventory fee and starts next month
Seller_KJJHX90Utzmcq
This is crazy! Big fish eat smaller fish all the time.
Seller_WsdULSSIajCRd
Yup, I talk about the same issues here. Amazon makes 36% gross profit margin in Fees on my 12M in FBA sales. I on the other hand, make 13%. That is operating gross profit margin, not net profit margin after overhead expenses. These new fees will drop that 13% to below 12% if I don’t find other ways to recover these fees, and I can’t simply raise my prices.
I think Amazon would wish us all to be SFP, as we know our businesses better than FBA employees. There would be less mistakes, less loss, less fees, and happier Amazon customers. But I’m simply not set up to ship 1000 orders per day. I don’t have the employee or the warehouse space needed, and it limits how much I can scale.
I’ve got a mix of 15 full time and part employees, and limited warehouse space. Currently our focus is on creating great listings and improving those we didn’t create. But I’d need an additional 10 employees minimum and people I could trust on the weekends, to handle Seller Fulfilled Prime.
I used to have dreams of scaling an Amazon business, but now I feel like I’m just fighting for more time to find a completely different business model as I don’t see this getting better.
Battling FBA's Fee Frenzy: Navigating Placement & Inventory Charges in a $12M FBA Business
Seller_Qbd0RsfZFEZBY
Things are getting better. East FC is back to CLT2 instead of NJ.
In contact with support about the lack of merge dropdown functionality
Seller_XJ5fPXK82lIHl
I have tried to break my product into smaller shipments to send and it need up being even more expensive! And I have in my settings the Amazon optimized shipments setting selected but it is still giving me the send to 1 warehouse option. My ship fee is $9 and my inventor placement is $37! Brining my total to $46 to ship in 82 small items that weigh about 3-4 oz each. This is criminal! I am also shipping from the west and it is forcing me to ship to the east then I am paying an exorbitant fee for them to most likely place some of the items in a warehouse in the west. This is insane and MODS are no where to be seen to help with this issue.
I know that this was announced but no one knew it would be this bad and now Amazon is nowhere to be found
Amazons Double Wammy Inbound Placement Fees
I've been browsing through forums, taking in the widespread frustration regarding the new inbound placement fees, and the situation seems to be reaching a boiling point. It's astounding to see shipment costs skyrocket from $8 - $14 per box to an exorbitant $90 - $140. However, I've noticed a significant piece of the puzzle that many seem to be missing. It's not just about the increased fees for placements; there's an additional layer where we're being penalized for failing to maintain sufficient stock levels to meet demand. This essentially forces us to increase the frequency of our shipments to ensure our inventory levels are adequate. Failure to do so results in per-unit charges. Amazon's strategy seems to be pushing us into a corner where we're compelled to send more units, all the while increasing the costs for placement.
This change is particularly impactful for those of us with one or two ASINs teetering on the edge of not meeting the required inventory levels, prompting a need to replenish with a SPD shipment.
As a potential workaround, I'm considering sending a larger shipment to Amazon's storage and distribute. This would allow Amazon to automatically pull inventory as needed, potentially helping to circumvent these fees. Or just switch to FBM.
PS: if Amazon doesnt want us to use their warehouses... their doing a good job at sticking it to small businesses
Amazons Double Wammy Inbound Placement Fees
I've been browsing through forums, taking in the widespread frustration regarding the new inbound placement fees, and the situation seems to be reaching a boiling point. It's astounding to see shipment costs skyrocket from $8 - $14 per box to an exorbitant $90 - $140. However, I've noticed a significant piece of the puzzle that many seem to be missing. It's not just about the increased fees for placements; there's an additional layer where we're being penalized for failing to maintain sufficient stock levels to meet demand. This essentially forces us to increase the frequency of our shipments to ensure our inventory levels are adequate. Failure to do so results in per-unit charges. Amazon's strategy seems to be pushing us into a corner where we're compelled to send more units, all the while increasing the costs for placement.
This change is particularly impactful for those of us with one or two ASINs teetering on the edge of not meeting the required inventory levels, prompting a need to replenish with a SPD shipment.
As a potential workaround, I'm considering sending a larger shipment to Amazon's storage and distribute. This would allow Amazon to automatically pull inventory as needed, potentially helping to circumvent these fees. Or just switch to FBM.
PS: if Amazon doesnt want us to use their warehouses... their doing a good job at sticking it to small businesses
84 replies
84 replies
Seller_z0STTH7Les03R
I started doing more FBM but then I get a Negative feedback, as the customer said for me to send her tracking over, for a item she was returning, I guess she lost her tracking which I couldn't control since it wasn't anything I shipped, and Amazon wouldn't remove the Feedback, so now I am terrified to use FBM, 90 percent of my customers don't give me feedback so that one really affected me and I have been with Amazon for a decade so I feel I am in a situation now I must send things in since they won't even remove a question that was asked on my Feedback. Years ago....they would of removed that....they truly helped us.....
Seller_Ha6JyVvDK6Ybs
Amazon is a business that makes money on transaction and now they created more transactions on FBA then once you send more units magically an issue with listing will occur stranding inventory then forcing a removal or disposal total racket.
Seller_LaR0wzinE1rAd
I really think the reason behind all of the extra fees goes a lot deeper than we all imagine as sellers...
I think Amazon wont pay employees at the fulfillment warehouses enough for them to care about your products and your investment.
No one talks about the amount of substance abuse and violence that goes on in the fulfillment centers, but there are news articles about it... there are tons of Amazon FC employees on Reddit talking about what they do at/in the warehouse while they're on the job. They're being allowed to use cannabis while working and handling your inventory that you pay Amazon so much to handle for you.
They stopped screening people for cannabis use in June 2021. Coincidently when things really started going downhill with FBA.
Maybe if Amazon hired less people, but competent people that don't do drugs and that cared about their job (because they pay them more?) then we wouldn't have so many issues with FBA.
Maybe if Amazon doesn't want small businesses to send their their products, they should just come out and tell small businesses they are no longer welcome in FBA instead of nickel and dime us all until we have nothing left.
Google this Reddit post called "Don't Get Caught Amazon FC"
Seller_PgPO1RrhvIiPA
Some of us are opting to use this method for FBA SPD.
Seller_t2dVZmQv9FkEA
The inbound placement fee will likely result in a surge in the overall platform sales price. Being assured of its delivery services, Amazon has taken the bold step of implementing this change. Amazon believes that TEMU, SHEIN, and TIKTOK, among others, will not pose a significant threat to its business. Nevertheless, there may be occasions where Amazon's overconfidence could prove detrimental. The unfolding of events in this situation remains to be witnessed.
Seller_HOFRDxJYxGwRs
You mentioned the penalty when our listing does not meet the required inventory level. I haven't seen that, can you give me the link pointing out that statement? If so, it's crazy
Seller_rr45B3vDsauwa
called the low inventory fee and starts next month
Seller_KJJHX90Utzmcq
This is crazy! Big fish eat smaller fish all the time.
Seller_WsdULSSIajCRd
Yup, I talk about the same issues here. Amazon makes 36% gross profit margin in Fees on my 12M in FBA sales. I on the other hand, make 13%. That is operating gross profit margin, not net profit margin after overhead expenses. These new fees will drop that 13% to below 12% if I don’t find other ways to recover these fees, and I can’t simply raise my prices.
I think Amazon would wish us all to be SFP, as we know our businesses better than FBA employees. There would be less mistakes, less loss, less fees, and happier Amazon customers. But I’m simply not set up to ship 1000 orders per day. I don’t have the employee or the warehouse space needed, and it limits how much I can scale.
I’ve got a mix of 15 full time and part employees, and limited warehouse space. Currently our focus is on creating great listings and improving those we didn’t create. But I’d need an additional 10 employees minimum and people I could trust on the weekends, to handle Seller Fulfilled Prime.
I used to have dreams of scaling an Amazon business, but now I feel like I’m just fighting for more time to find a completely different business model as I don’t see this getting better.
Battling FBA's Fee Frenzy: Navigating Placement & Inventory Charges in a $12M FBA Business
Seller_Qbd0RsfZFEZBY
Things are getting better. East FC is back to CLT2 instead of NJ.
In contact with support about the lack of merge dropdown functionality
Seller_XJ5fPXK82lIHl
I have tried to break my product into smaller shipments to send and it need up being even more expensive! And I have in my settings the Amazon optimized shipments setting selected but it is still giving me the send to 1 warehouse option. My ship fee is $9 and my inventor placement is $37! Brining my total to $46 to ship in 82 small items that weigh about 3-4 oz each. This is criminal! I am also shipping from the west and it is forcing me to ship to the east then I am paying an exorbitant fee for them to most likely place some of the items in a warehouse in the west. This is insane and MODS are no where to be seen to help with this issue.
I know that this was announced but no one knew it would be this bad and now Amazon is nowhere to be found
Seller_z0STTH7Les03R
I started doing more FBM but then I get a Negative feedback, as the customer said for me to send her tracking over, for a item she was returning, I guess she lost her tracking which I couldn't control since it wasn't anything I shipped, and Amazon wouldn't remove the Feedback, so now I am terrified to use FBM, 90 percent of my customers don't give me feedback so that one really affected me and I have been with Amazon for a decade so I feel I am in a situation now I must send things in since they won't even remove a question that was asked on my Feedback. Years ago....they would of removed that....they truly helped us.....
Seller_z0STTH7Les03R
I started doing more FBM but then I get a Negative feedback, as the customer said for me to send her tracking over, for a item she was returning, I guess she lost her tracking which I couldn't control since it wasn't anything I shipped, and Amazon wouldn't remove the Feedback, so now I am terrified to use FBM, 90 percent of my customers don't give me feedback so that one really affected me and I have been with Amazon for a decade so I feel I am in a situation now I must send things in since they won't even remove a question that was asked on my Feedback. Years ago....they would of removed that....they truly helped us.....
Seller_Ha6JyVvDK6Ybs
Amazon is a business that makes money on transaction and now they created more transactions on FBA then once you send more units magically an issue with listing will occur stranding inventory then forcing a removal or disposal total racket.
Seller_Ha6JyVvDK6Ybs
Amazon is a business that makes money on transaction and now they created more transactions on FBA then once you send more units magically an issue with listing will occur stranding inventory then forcing a removal or disposal total racket.
Seller_LaR0wzinE1rAd
I really think the reason behind all of the extra fees goes a lot deeper than we all imagine as sellers...
I think Amazon wont pay employees at the fulfillment warehouses enough for them to care about your products and your investment.
No one talks about the amount of substance abuse and violence that goes on in the fulfillment centers, but there are news articles about it... there are tons of Amazon FC employees on Reddit talking about what they do at/in the warehouse while they're on the job. They're being allowed to use cannabis while working and handling your inventory that you pay Amazon so much to handle for you.
They stopped screening people for cannabis use in June 2021. Coincidently when things really started going downhill with FBA.
Maybe if Amazon hired less people, but competent people that don't do drugs and that cared about their job (because they pay them more?) then we wouldn't have so many issues with FBA.
Maybe if Amazon doesn't want small businesses to send their their products, they should just come out and tell small businesses they are no longer welcome in FBA instead of nickel and dime us all until we have nothing left.
Google this Reddit post called "Don't Get Caught Amazon FC"
Seller_LaR0wzinE1rAd
I really think the reason behind all of the extra fees goes a lot deeper than we all imagine as sellers...
I think Amazon wont pay employees at the fulfillment warehouses enough for them to care about your products and your investment.
No one talks about the amount of substance abuse and violence that goes on in the fulfillment centers, but there are news articles about it... there are tons of Amazon FC employees on Reddit talking about what they do at/in the warehouse while they're on the job. They're being allowed to use cannabis while working and handling your inventory that you pay Amazon so much to handle for you.
They stopped screening people for cannabis use in June 2021. Coincidently when things really started going downhill with FBA.
Maybe if Amazon hired less people, but competent people that don't do drugs and that cared about their job (because they pay them more?) then we wouldn't have so many issues with FBA.
Maybe if Amazon doesn't want small businesses to send their their products, they should just come out and tell small businesses they are no longer welcome in FBA instead of nickel and dime us all until we have nothing left.
Google this Reddit post called "Don't Get Caught Amazon FC"
Seller_PgPO1RrhvIiPA
Some of us are opting to use this method for FBA SPD.
Seller_PgPO1RrhvIiPA
Some of us are opting to use this method for FBA SPD.
Seller_t2dVZmQv9FkEA
The inbound placement fee will likely result in a surge in the overall platform sales price. Being assured of its delivery services, Amazon has taken the bold step of implementing this change. Amazon believes that TEMU, SHEIN, and TIKTOK, among others, will not pose a significant threat to its business. Nevertheless, there may be occasions where Amazon's overconfidence could prove detrimental. The unfolding of events in this situation remains to be witnessed.
Seller_t2dVZmQv9FkEA
The inbound placement fee will likely result in a surge in the overall platform sales price. Being assured of its delivery services, Amazon has taken the bold step of implementing this change. Amazon believes that TEMU, SHEIN, and TIKTOK, among others, will not pose a significant threat to its business. Nevertheless, there may be occasions where Amazon's overconfidence could prove detrimental. The unfolding of events in this situation remains to be witnessed.
Seller_HOFRDxJYxGwRs
You mentioned the penalty when our listing does not meet the required inventory level. I haven't seen that, can you give me the link pointing out that statement? If so, it's crazy
Seller_HOFRDxJYxGwRs
You mentioned the penalty when our listing does not meet the required inventory level. I haven't seen that, can you give me the link pointing out that statement? If so, it's crazy
Seller_rr45B3vDsauwa
called the low inventory fee and starts next month
Seller_rr45B3vDsauwa
called the low inventory fee and starts next month
Seller_KJJHX90Utzmcq
This is crazy! Big fish eat smaller fish all the time.
Seller_KJJHX90Utzmcq
This is crazy! Big fish eat smaller fish all the time.
Seller_WsdULSSIajCRd
Yup, I talk about the same issues here. Amazon makes 36% gross profit margin in Fees on my 12M in FBA sales. I on the other hand, make 13%. That is operating gross profit margin, not net profit margin after overhead expenses. These new fees will drop that 13% to below 12% if I don’t find other ways to recover these fees, and I can’t simply raise my prices.
I think Amazon would wish us all to be SFP, as we know our businesses better than FBA employees. There would be less mistakes, less loss, less fees, and happier Amazon customers. But I’m simply not set up to ship 1000 orders per day. I don’t have the employee or the warehouse space needed, and it limits how much I can scale.
I’ve got a mix of 15 full time and part employees, and limited warehouse space. Currently our focus is on creating great listings and improving those we didn’t create. But I’d need an additional 10 employees minimum and people I could trust on the weekends, to handle Seller Fulfilled Prime.
I used to have dreams of scaling an Amazon business, but now I feel like I’m just fighting for more time to find a completely different business model as I don’t see this getting better.
Battling FBA's Fee Frenzy: Navigating Placement & Inventory Charges in a $12M FBA Business
Seller_WsdULSSIajCRd
Yup, I talk about the same issues here. Amazon makes 36% gross profit margin in Fees on my 12M in FBA sales. I on the other hand, make 13%. That is operating gross profit margin, not net profit margin after overhead expenses. These new fees will drop that 13% to below 12% if I don’t find other ways to recover these fees, and I can’t simply raise my prices.
I think Amazon would wish us all to be SFP, as we know our businesses better than FBA employees. There would be less mistakes, less loss, less fees, and happier Amazon customers. But I’m simply not set up to ship 1000 orders per day. I don’t have the employee or the warehouse space needed, and it limits how much I can scale.
I’ve got a mix of 15 full time and part employees, and limited warehouse space. Currently our focus is on creating great listings and improving those we didn’t create. But I’d need an additional 10 employees minimum and people I could trust on the weekends, to handle Seller Fulfilled Prime.
I used to have dreams of scaling an Amazon business, but now I feel like I’m just fighting for more time to find a completely different business model as I don’t see this getting better.
Battling FBA's Fee Frenzy: Navigating Placement & Inventory Charges in a $12M FBA Business
Seller_Qbd0RsfZFEZBY
Things are getting better. East FC is back to CLT2 instead of NJ.
In contact with support about the lack of merge dropdown functionality
Seller_Qbd0RsfZFEZBY
Things are getting better. East FC is back to CLT2 instead of NJ.
In contact with support about the lack of merge dropdown functionality
Seller_XJ5fPXK82lIHl
I have tried to break my product into smaller shipments to send and it need up being even more expensive! And I have in my settings the Amazon optimized shipments setting selected but it is still giving me the send to 1 warehouse option. My ship fee is $9 and my inventor placement is $37! Brining my total to $46 to ship in 82 small items that weigh about 3-4 oz each. This is criminal! I am also shipping from the west and it is forcing me to ship to the east then I am paying an exorbitant fee for them to most likely place some of the items in a warehouse in the west. This is insane and MODS are no where to be seen to help with this issue.
I know that this was announced but no one knew it would be this bad and now Amazon is nowhere to be found
Seller_XJ5fPXK82lIHl
I have tried to break my product into smaller shipments to send and it need up being even more expensive! And I have in my settings the Amazon optimized shipments setting selected but it is still giving me the send to 1 warehouse option. My ship fee is $9 and my inventor placement is $37! Brining my total to $46 to ship in 82 small items that weigh about 3-4 oz each. This is criminal! I am also shipping from the west and it is forcing me to ship to the east then I am paying an exorbitant fee for them to most likely place some of the items in a warehouse in the west. This is insane and MODS are no where to be seen to help with this issue.
I know that this was announced but no one knew it would be this bad and now Amazon is nowhere to be found
