FBA inbound fee higher than profit. Close FBA?
I'm facing very high inbound fees, that over my profit, and making our FBA business a loss-making business.
Since we are selling low-cost and high-velocity products, we need to create a lot of shipments but the new “inbound fee” is higher than our profit margin. I've been selling this product since 2015, it's been more than 9 years. We never have an inbound fee.
Suggested by Amazon “Minimal shipment splits” and “Partial or Amazon-optimized shipment splits” show me the same very HIGH fee.
Whan I creating shipment I see system message "do not qualify for partial shipment splits". It seems like for some reason my products do not qualify for partial shipment splits anymore. What is the reason or why AFTER 9 years of successfully selling?????
These unsuspected changes make our FBA business "loss-making", we can not afford the inbound fee due to its much HIGHER than our profit margin. So we need to close our FBA business since it has become unprofitable.
NEED HELP!
4 replies
Seller_z3XfkorVSmnEY
The reason is that Amazon is asking/requiring us the sellers to have our products closer to the customers. Amazon wants to off-set their cost of moving our inventory all around the country. Yes it's a pain. And no, I don't see this going away. But like every other change Amazon has made in the last decade+ we've got to figure out how to adapt. That may mean sending in larger quantity, making multi-packs and/or doing FBM. We're doing a combination of all of them. And at some point, some items just aren't worth it to sell on the Amazon platform anymore. It's just business.
Dominic_Amazon
Hi @Seller_QU0mtIPuXcFhG,
Dominic from Amazon here, would like to help. The Amazon Revenue Calculator now has additional information to help try to provide additional info when it comes to sending products into FBA.
Inbound placement options will be provided only when your shipments qualify. Factors that affect the number of inbound options include the following:
- Whether your shipment includes a mix of standard-size items, non-standard-size items, or special handling categories
- Whether each box contains the same mix and quantities of SKUs
- Quantities and number of boxes for each item
- Geographical demand
To maximize the number of inbound options, try the following:
- Create separate shipments for standard-size items, non-standard-size items, and each special handling category
- Ensure that the item mix and item quantities are equal across all boxes
- Increase the number of boxes
Best,
Dominic
