New Fees for Amazon Sellers: The Inbound Placement Service Explained

As of March 1st, 2024, Amazon sellers are facing a new fee: the Inbound Placement Service.  This applies to sellers who use Fulfillment by Amazon (FBA) and impacts standard-sized and large bulky products

​What is the Inbound Placement Service Fee?

Amazon is implementing this fee to cover the cost of strategically placing inventory within their fulfillment network.expand_more This means storing products closer to customers, allowing for faster delivery times and potentially lower overall shipping costs.
How much are the fees?

• Standard-sized products: ~$0.27 per unit
• Large bulky products: ~$1.58 per unit

​There's a grace period!

While the fees technically began on March 1st, Amazon won't start collecting them until April 15th, 2024. This gives sellers a 45-day window to adjust their FBA strategy.

How can I reduce or avoid these fees? 

There are a couple of ways to potentially minimize the impact of the Inbound Placement Service Fee:

• Fulfillment by Merchant (FBM): Consider using FBA for only a portion of your inventory, and fulfilling the rest yourself (FBM). This gives you more control over storage and potentially reduces fees.expand_more
• Strategic inventory placement: Use Amazon's tools to strategically choose which fulfillment centers to send your inventory to. This can help get your products closer to your target markets and potentially reduce inbound fees

​Is the Inbound Placement Service Fee a bad thing? pen_spark

Not necessarily. Faster deliveries can lead to higher customer satisfaction and potentially more sales. The key is to understand the fees and adjust your FBA strategy accordingly.​

Stay Informed!

The world of e-commerce is constantly changing. Staying informed about Amazon fee updates and policy changes can help you optimize your business and stay ahead of the curve.