Amazon's New Inbound Placement Fees Explained

FBA shipping is about to get a lot more expensive come March 1st when Amazon starts charging their new Inbound Placement fees. (formerly known as Inventory Placement). Either pay up or deal with tons of split shipments!

In this video I'll breakdown everything you need to know about these fees, plus give you some potentially money saving tips.

[mannya]

I noticed this after I created a shipment last week. It’s crazy stupid how much more we are paying in shipping fees.

[kristeneifes]

It’s cost me $100 for 2 boxes plus Amazon fees, taxes and everything else. I’m almost paying Amazon to sell my items and make nothing. I have to increase prices to offset set cost. It’s ridiculous

[zuser]

Selling on Amazon has become ridiculous. Been selling on it for 7 years, and the FEES have gotten so high that it is time to be done. Let's list the fees: Fee to ship to FBA, Fee to transfer shipments, Fee for storage, fee FBA fees, Fees for Referrals, Fees for low-inventory. F*ck Amazon.

[timsmith]

Yea i was just forced to pack 6 items in 1 box and 33 in another it ended up costing me $4.76 for the 6 items $13 something for the actual shipment and $15 something for placement fees, placement fees were higher than shipping

[RichColby]

I just sent a shipment of books & music in (before 3/1) these new fees per item are back-breaking to the small business owner. Looks like I'll be doing 100% FBM from here on out. Are they trying to get rid of 3rd party sellers?

[walkinfaithnotbysight]

I just shipped 311 units from California to the east coast and it wound up costing $0.86 a unit to send tonone warehouse. There was literally no other option. Even after checking my settings and waiting and watching for a couple days, the other options were "unavailable." I could cry.

[ELANG]

In the end, the consumer will pay more.

[Stanbott]

It just means you have to reevaluate FBM or you have to rethink AMZ if you have small and light

[robertr]

The key component is that there is ZERO improvement to service to the seller or consumer. It is just Amazon shedding costs to sellers that they have been doing for well over a decade already.

[branoatrice]

4+ locations? My last shipment was 19 shipments. This is ridiculous

[streakurt]

Time to leave Amazon. i'm afraid this not indeed for faster shipment this is indeed for how to charge to seller more.

[scarletspider]

I had a shipment I just sent in last week where they double slammed me…not only did they force me to ship over 1000 units across the entire country…they forced me to use inventory placement once it got there, presumably sending a ton of the units back toward the same direction they just came from. This entire thing is ridiculous and completely un sustainable for any small seller. Which leads me to believe that this is intentional to push small sellers out of the marketplace.

[fp]

Not seeing split shipments options at all. No matter how many boxes selected

[gracy]

Please make another video if we can avoid the inbound placement fees using 2D workflow now that the inbound placement feature has started

[annking]

Amazon is trying to charge shipping for EACH item now - just deleted EVERYTHING in my basket! Had over $200 worth of items! NOT f-ing happy!!! Going back to Wally world & other local retailers! Sick of China knock offs that are no good anyways!

[PurchasingManager-fp]

I never used to be able to beat amazon LTL rates, now my rates for many locations are way better than amazon's rates, which means they are turning this into a secondary profit center because there is no way I have as much negotiating power with LTL carriers as Amazon does....

The cost of a comparable shipment (similar weights and dims to same locations) before March 1st was about 60% less

[billshinas]

Would this affect sellers sending lets say 300 to 400 units as much?

[va_tech_chick]

I have my account set up for the partial split shipment option. Amazon decided to send all my books to one location, and I still got charge the placement fee!

I guess I'm moving to FBM.

[TommyC_FPV]

Are you going to respond about the emails that went out from amazon?

[lasvegasadventures]

This sucks. You were never shipping to one warehouse that is closest to you anyway (Im in Vegas and they always make me split my shipments to TX, IL, TN, CT...basically, all ove rthe damn country). But now, that Placement Service is in my shipment BY DEFAULT. It doubled my shipment costs. Gave me a heart attack. Thanks for this video. I will have to figure this out.,