BREAKING: Amazon Seller Central Inbound Placement Service is Increasing Inbound Fees Substantially for Some Sellers

You may recall that our 2024 Fee Changes Letter back in December mentioned an increase in inbounding fees due to a new program rollout by Amazon: Inbound Placement Service.

Per Amazon, the program (launched this week) would provide 3 shipment consolidation options (details below) when loading an inbound order. The expectation among Amazon sellers was to utilize the free Amazon Optimized split as that has always been the default. However, the launch has been problematic with Amazon not offering the free option for all shipments and the fees are higher than originally stated. Amazon is currently heavily under fire for these moves on forums as this was not how the changes were communicated.

Bottom Line: Not all sellers are impacted by this new program, but please be on the lookout for communication from your Brand Managers and planners should your operations be affected. If we do find significant fee increases on your account we will provide you with options to mitigate the increases.

Thank you,

Commerce Canal

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1. Amazon Optimized Shipment Split

   • An order would not be consolidated at all – the seller would ship to as many FCs as Amazon requests…historically this has been the default

   • No fee is associated

2. Partial Shipment Split

   • An order would be slightly consolidated, i.e instead of shipping to 5 FC destinations, the seller can opt to ship to two or three

   • A small per-unit fee is associated

3. Minimal Shipment Split

   • An order would be completely consolidated, i.e instead of shipping to 5 FC destinations, the seller can opt to ship to only one

   • A more expensive per-unit fee is associated

The fee for small and medium sized products (<18x14x8 and <20 lbs) ranged from $0.12 to $0.68 per unit for the partial and minimal shipment split options.

The fee for large items (>18x14x8) ranged from $0.55 to $6.00 per unit for partial and minimal shipment split options.

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