The Inbound Placement Service allows sellers to send their inventory to a single or a few Amazon fulfillment centers instead of multiple locations. This can simplify the shipping process and potentially reduce costs. Amazon is aware of its customers’ needs and has always prioritized addressing their needs. Customers need fast and free shipping, but it is extremely expensive to ship goods across the United States. To overcome this issue, Amazon strategically introduced the FBA IPS (Inbound Placement Service) on the 1st March 2024. In this Service Amazon places inventory in multiple fulfillment centers to ensure quick delivery and lower costs. Let us explain and guide how this service works for Sellers.
Note. Amazon has recently terminated the Inventory Placement Service, FBA Multiple Destinations, and Amazon recommended shipment programs as of February 29, 2024. These services have been replaced with new Inbound Placement Service options that introduce specific fees based on item size and weight, effective March 1, 2024.
Inbound Placement Service Options
Amazon has also introduced three types of Inbound Placement Service options to support its sellers which are given below:
- Minimal Shipment Splits: This option sends the shipment to a single location, with a fee based on the dimensions and weight of the shipment.
- Partial Shipment Splits: This allows you to choose a specific number of fulfillment centers (e.g., 2 or 3) to which your inventory will be sent.
- Amazon-Optimized Shipment Splits: This is the best option for your shipment plan. It incurs no fees, and Amazon distributes the shipment to 4 or more locations.
For more details on the fee structure, Amazon provides comprehensive guidelines here.
How Amazon Calculate The Inbound Placement Fees
The inbound placement fee calculated by the Amazon on different factors like the size and weight of the product, number of locations and the inbound location.
Size and Weight of product
The calculation depends upon the product size (small standard, large standard, or large bulky) and weight (unit weight for small standard, dimensional or unit weight for large standard and large bulky, whichever is greater).
Number of Locations
The calculation also depends on the option you choose for the inbound placement splits. You can choose to send your inventory to a minimal number of fulfillment centers, a partial selection, or use Amazon-optimized shipment splits, which affects the distribution of your products.
Inbound Location
The location of the specific fulfillment center (inbound location) can also influence the fee. The fee varies according to the areas and regions. Like the Western region has higher fee plans as compared to others.
For more details on the fee structure, Amazon provides comprehensive guidelines here.
Inbound Defect Fees:
Misrouted and Delayed Shipments
You may incur inbound defect fees if your shipments are misrouted or do not arrive within the timeframe specified by Amazon’s inbound policies. Moreover, these fees cover the additional costs associated with redirecting, receiving, and processing your shipment.
Premium and Discounted Inbound Placement Services
Shipments sent using the Premium or Discounted Inbound Placement Services that do not arrive at the correct locations or become abandoned are also subject to increased rates. These rates are based on the actual inbound location(s) and the number of shipments received.
Domestic and International Shipping Timeframes
- Domestic Shipments: Must arrive within 45 days of shipment creation.
- International Shipments: Must arrive within 75 days of shipment creation.
- Multiple Locations: If shipping to multiple locations, additional shipments must arrive within 30 days of the first shipment.
Tracking and Performance
You can track your shipments on the Shipment Performance Dashboard and view additional details in the Inbound Performance Report in Seller Central.
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