Does the newly named FBA PLACEMENT FEE take the place of another fee?
Or is this an entire new way to skim more of my profits? I mean my units always went to Dallas or Memphis and yes spread out from there. Yesterday I sent up a fairly large replenishment as I always do, and I see this "Placement Fee" for this particular shipment, $168 I mean Amazon gets about 40% as it is. I am just curious if they were forced to be descriptive with these funds required to send my inventory all over the nation? I looked at my year end from 23 and I do not see anything referencing a placement fee, but the Other fee's category is pretty high. Just wondering if anybody actually knows.
Thank you
3 replies
Steve_Amazon
Hi @Seller_ceS0FcXOrQ4pN,
Steve from Amazon here, thank you so much for reaching out in the forums. With this change, we are focusing on how we partner together to inbound and place inventory across our network. Placing inventory close to customers improves the speed of those orders, driving more sales at lower transportation cost. To enable more efficient use of our network, we will begin charging separately for inbound and outbound activities. As a result, we will lower our outbound fees while creating new inbound fees that you can reduce or avoid entirely based on how you inbound products to us:
- We will introduce an inbound placement service fee for standard and Large Bulky-sized products to reflect our cost of distributing inventory to fulfillment centers close to customers. These fees will average $0.27 per unit for standard-sized products and $1.58 per unit for Large Bulky-sized products. We will give you the option to pay reduced fees or even no fee based upon whether you send your shipment to a single location or multiple locations. These fees will be effective starting March 1, 2024, and the fees will be charged 45 days after products are received. Go to the Inbound placement service fee page for more details.
- On average, we will decrease FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit. These fees will apply starting April 15, 2024, the same date that the first inbound placement fees will begin to be charged. Products priced below $10 will continue to have an additional $0.77 discount on per-unit fees. Go to the FBA fulfillment fee rates page for more details.
Please review the "Update to US referral and Fulfillment by Amazon fees" thread for more information on this and let me know if there are any other questions.
Thanks,
Steve