New Seller Incentives: Over $50,000 in Referral Fee Savings per MarketplaceNew Seller Incentives: Over $50,000 in Referral Fee Savings per Marketplace
Fulfillment by Amazon (FBA) Efficient Operations Guide
Full-process fee breakdown and operational guidance at each stage
How Fulfillment by Amazon (FBA) helps sellers reduce costs and increase efficiency
Since Amazon was founded, one fact hasn't changed: customers want more choices, lower prices, and faster delivery times. We're expanding our selection, reducing costs, and completing deliveries faster than ever before.Doug HerringtonCEO of Amazon Global Stores
The importance of faster delivery
Fast delivery is key to increasing traffic, sales, and customer experience: Amazon customers are more willing to buy Same-Day Delivery or 1-Day products.
*Data shows: sellers using Fulfillment by Amazon (FBA) see an average
20%-25%
sales increase.
Fulfillment by Amazon (FBA) performance
The fastest delivery service ever
● In 2023, more than 7 billion products were available for Same-Day Delivery or 1-Day, including more than 4 billion products in the US and more than 2 billion in Europe
●In the fourth quarter of 2023, the number of items Amazon delivered in the US on the same day or the next day increased 65% year over year, and the number of items delivered from regional fulfillment centers increased by nearly 600 million year over year
● In the UK, more than 70% of Prime member orders were delivered the same day or the next day. In Europe, in 2023, Amazon reduced the middle-mile transportation distance of each package by an average of 25 km year over year
Continuously optimized Amazon delivery costs and benefits
● Compared to other next-day delivery services, FBA costs an average of 70% less
How Fulfillment by Amazon (FBA) improves speed and lowers costs
Regional operations services
Move inventory closer to customers
Upgrade the Same-Day Delivery network
Detailed guide to improving delivery speed and operational efficiency
Fulfillment by Amazon (FBA) Operations Process Overview (After the 2024 New Policy)
First-mile inbound: precise inbound placement, increase sales by 15%
Goal:
Precisely send inventory to the fulfillment center closest to customers
Key Metrics:
● Received at the fulfillment center closest to customers, with no inbound defects
Related fees:
● Inbound Placement Service Fee: the cost of Amazon helping sellers move inventory to fulfillment centers closer to consumers
● Inbound Defect Fee: fee charged when a product does not meet Amazon’s shipment requirements or differs from the inventory and inbound plan
How to view key metrics
Inbound Placement Service Fee: when creating a shipment, in step 2 of STA, you can see the eligible inbound placement options and the estimated Inbound Placement Service Fee. 45 days after your shipment is received, we will charge you an inbound placement service fee based on the actual inbound locations and quantities. You can track expenses in two ways:
1. Payment Dashboard - Transaction Summary - Transaction Type (Service Fees) - Click Update to view the inbound placement service fee for each shipment.
1. Payment Dashboard - Transaction Summary - Transaction Type (Service Fees) - Click Update to view the inbound placement service fee for each shipment.
2. Download the report. This report will show the inbound plan, shipment, and SKU fees for the Inbound Placement Service, and help you determine whether the inbound plan meets the requirements.
Path: Reports - Inventory and Sales Reports - Payments - Fulfillment by Amazon Inbound Placement Service Fee
Path: Reports - Inventory and Sales Reports - Payments - Fulfillment by Amazon Inbound Placement Service Fee
Inbound defect rate: Go to Seller Central – Inventory – Shipments – Shipment performance
Optimization recommendations
What Amazon did: regional operations services
In the US, Amazon is implementing regional operations by dividing its fulfillment centers and delivery network into smaller, easier-to-serve regions, making more efficient use of inventory within each region. Shipping from regional operation centers to distribution stations helps reduce the time packages spend at distribution stations, reduces reliance on air freight, and enables products to be delivered to customers more quickly.
How sellers can optimize inbound shipping
● Create an inbound plan as recommended by Amazon, and deliver the products as planned
● To maximize the available inbound options, such as Amazon Managed Placement shipment splits (with no inbound placement fee), you can try the following:
1. Create separate shipments for standard-size products, non-sortable products, and products in each special handling category
2. Increase the number of boxes
3. For products packed in mixed boxes, ensure that all boxes have the same combination and quantity of products
1. Create separate shipments for standard-size products, non-sortable products, and products in each special handling category
2. Increase the number of boxes
3. For products packed in mixed boxes, ensure that all boxes have the same combination and quantity of products
● Provide an accurate estimated delivery window
How sellers can reduce costs and improve efficiency
Inbound Placement Service Fee
Amazon assesses and predicts customer demand for your products in different regions and recommends inbound placement options that will reduce your Inbound Placement Service fees
Inbound defect fee
Prevent shipments from being delivered to the wrong location
● Before shipping, carefully check whether the shipping label matches the fulfillment center and address in the system to avoid delivery to the wrong address due to mislabeling
● If you use a third-party logistics company, be sure to confirm with them and track the fulfillment center the shipment is expected to be sent to
How to avoid deleted and discarded shipments
● Try to include products with similar ship dates and transit times in the same shipment plan, and avoid sending shipments in the same shipment plan by both air and sea
● Ship as soon as possible after creating a shipment. If you are temporarily unable to ship or want to change an approved shipment plan, you must delete all shipments in that plan before any shipment in that plan arrives.
● If you use a third-party logistics company, please promptly enter an accurate delivery time window for the shipment to arrive at the fulfillment center when you create the shipment, and update it at any time based on the actual situation before the time window begins
● If you use a third-party logistics company, be sure to confirm with them and track the fulfillment center the shipment is expected to be sent to
How to avoid deleted and discarded shipments
● Try to include products with similar ship dates and transit times in the same shipment plan, and avoid sending shipments in the same shipment plan by both air and sea
● Ship as soon as possible after creating a shipment. If you are temporarily unable to ship or want to change an approved shipment plan, you must delete all shipments in that plan before any shipment in that plan arrives.
● If you use a third-party logistics company, please promptly enter an accurate delivery time window for the shipment to arrive at the fulfillment center when you create the shipment, and update it at any time based on the actual situation before the time window begins
Referral Fee
Adjust product prices to qualify for lower referral fees
Fulfillment by Amazon (FBA) Fulfillment Fee
Adjust product packaging and prices to qualify for lower fulfillment fees
Efficient tools for first-mile inbound shipments
1. Amazon-managed first-mile solution
● Helps avoid inbound defect fees
● If the transit time of the goods (from the date of shipment to receipt at the Amazon warehouse) exceeds the average delivery time, Amazon will refund the low inventory fee charged for the corresponding product during the delay period on the 15th of the following month.
Amazon Global Logistics (AGL)
We provide Amazon sellers with an end-to-end cross-border transportation solution from origin points in China to the United States, the United Kingdom, Germany, France, Italy, and Spain for Full Container Load and Less than a container load ocean shipping, including fast ocean and Standard Ocean services.
Search WeChat for the “Amazon Global Logistics” official account to get more details
Amazon SEND
Amazon SEND carefully selects high-quality third-party service providers for sellers and provides sea and air shipping services from China to the United States, the United Kingdom, Germany, Japan, the Middle East, and Australia. Fast transit times, stable fulfillment, and simple operations ensure that your goods are delivered on time and accurately to the designated location according to the inbound plan.
2. Amazon inbound distribution network
● Achieve shipment consolidation and avoid inbound defects
● No additional Inbound Placement Service fee
● No need to worry about inventory being too low
● No low-inventory-level fees
● No holiday peak inventory fee
● Save 80% on Bulk Liquidations fees
Not sure how to use AWD more cost-effectively?
Amazon Warehousing and Distribution (AWD)
The seller places the shipment in AWD and selects automatic replenishment to FBA. Amazon will arrange automatic replenishment from the AWD warehouse to the fulfillment center based on sales forecasts.
3. Low-price apparel referral fees and low-price Fulfillment by Amazon rates
● Adjust the product price to qualify for the low-price FBA rate, which is $0.77 less per unit than the standard rate
● You can adjust the price of apparel products to qualify for the low-price apparel referral fee, starting as low as 30% of the standard fee
4. Ships in Product Packaging program (SIPP)
Adjust your product packaging and get SIPP certified to receive Fulfillment by Amazon (FBA) fee discounts (up to $0.58 in the US and up to €4.83 per item in Europe).
1. Amazon-managed first-mile solution
● Helps avoid inbound defect fees
● If the transit time of the goods (from the date of shipment to receipt at the Amazon warehouse) exceeds the average delivery time, Amazon will refund the low inventory fee charged for the corresponding product during the delay period on the 15th of the following month.
Amazon Global Logistics (AGL)
We provide Amazon sellers with end-to-end cross-border transportation services from origin points in China to the United States, the United Kingdom, Germany, France, Italy, and Spain for full-container-load and less-than-container-load ocean shipping, including fast ocean and standard ocean services.
Search WeChat for the “Amazon Global Logistics” official account for more details
Amazon SEND
Amazon SEND selects high-quality third-party service providers for sellers, offering ocean and air shipping services from China to the United States, the United Kingdom, Germany, Japan, the Middle East, and Australia. Fast transit times, stable fulfillment, and simple operations ensure that your goods are delivered to the designated location on time and accurately according to the shipment plan.
2. Low-price apparel referral fees and low-price Fulfillment by Amazon rates
● Adjust the product price to qualify for the low-price FBA rate, which is $0.77 less per unit than the standard rate
● Apparel products can have their prices adjusted and qualify for low-price apparel referral fees, as low as 70% off
3. Ships in Product Packaging program (SIPP)
Adjust your product packaging and get SIPP-certified to receive discounts on Fulfillment by Amazon (FBA) fees (up to $0.58 in the US Marketplace and up to €4.83 per item in the European Marketplace).
1. Amazon-managed first-mile solution
● Helps avoid inbound defect fees
● If the shipping transit time (from the date the shipment is shipped to the date it is received at the Amazon warehouse) exceeds the average delivery time, Amazon will refund the low inventory fee charged for the corresponding products during the delay period on the 15th of the following month.
Amazon Global Logistics (AGL)
We provide Amazon sellers with an end-to-end cross-border transportation service from origin locations in China to the United States, the United Kingdom, Germany, France, Italy, and Spain for Full Container Load and Less than a container load ocean shipping, including fast ocean and Standard Ocean services.
Search WeChat for the “Amazon Global Logistics” official account to get more details
Amazon SEND
Amazon SEND selects high-quality third-party service providers for sellers and provides sellers with ocean and air shipping services from China to the United States, the United Kingdom, Germany, Japan, the Middle East, and Australia. Fast transit times, stable fulfillment, and simple operations ensure that your goods are delivered to the designated location on time and accurately according to the inbound plan.
2. Low-price apparel referral fees and low-price Fulfillment by Amazon rates
● Adjust product prices to qualify for the low-price FBA rate, which is $0.77 cheaper per item than the standard rate
● You can adjust prices for apparel products to qualify for low-price apparel referral fees, starting at 30% off
Warehousing and distribution: keep bestselling inventory in stock to increase sales by 15%
Goal:
Ensure bestselling products stay in stock, and reduce slow-moving inventory costs
Key Metrics:
● Good inventory level metric (above the minimum level)
● Historical days of supply are greater than 28 days
● Historical days of supply are greater than 14 days
● The estimated number of excess units is 0
● Inventory age is less than 180 days
● Inventory age is less than 270 days
● Storage utilization is less than 26 weeks
Related fees:
● Low-inventory-level fees
Fee charged for sortable products whose inventory levels consistently fall below customer demand
Fee charged for sortable products whose inventory levels consistently fall below customer demand
● overage fee
Fee charged when your inventory in Amazon fulfillment centers (excluding open shipments) exceeds your capacity limits
Fee charged when your inventory in Amazon fulfillment centers (excluding open shipments) exceeds your capacity limits
● Aged inventory surcharge
Fees charged for inventory stored in the Fulfillment by Amazon network for longer than a certain period
Fees charged for inventory stored in the Fulfillment by Amazon network for longer than a certain period
● Storage utilization surcharge
Fees charged based on product size and storage utilization
Fees charged based on product size and storage utilization
How to view key metrics
Go to Seller Central – Inventory – FBA Inventory
Go to Inventory Reports and SKU Cost Report in Seller Central
Optimization suggestions
What Amazon did: intelligently forecast regional demand and allocate products
Amazon uses machine learning algorithms to better predict which products customers in different regions want and when they want to buy them, ensure inventory is available where needed, improve the match between products and regional fulfillment centers, place products closer to customers, and increase the ability to complete orders in one shipment from the location closest to the customer.
How can sellers keep their inventory healthy
Keep bestselling products in stock
● Create a shipment plan as recommended by Amazon, and send the products according to the plan
Reduce the cost of slow-moving inventory
● Monitor your storage capacity and act quickly to increase capacity and reduce excess
● Increase capacity: apply for additional storage capacity
● Cost cutting: Clear excess inventory
How can sellers reduce costs and increase efficiency
low inventory cost coverage fee
Amazon calculates your historical days of supply based on product sales. Keeping your historical days of supply at the required level can help you avoid being charged the low inventory cost coverage fee.
Overage fee
Sellers should monitor storage capacity and, when storage utilization exceeds 80%, promptly remove slow-moving inventory or request additional storage capacity to avoid overage fees.
Aging inventory surcharge
Sellers should monitor the age of their inventory in stock and promptly remove slow-moving inventory when it becomes too old to avoid aging inventory surcharges.
Storage Utilization Surcharge
Sellers should pay attention to how their in-stock inventory uses storage capacity and promptly remove slow-selling inventory that takes up more storage capacity to avoid the storage utilization surcharge.
Efficient tools for warehouse distribution
Inventory volume management tool
“FBA Inventory” dashboard
● Help sellers manage bestselling inventory and slow-moving inventory levels
● Help reduce low-inventory-level fees, overage fees, aging inventory surcharges, and storage utilization surcharges
You can use filters to directly show ASINs with low inventory and take action directly in the "Recommended actions" column on the right.
Filter suggestions:
[Inventory Health] is "Low Stock" or "Out of Stock"
[Recommended days of supply] is “Last 30 days”
[Low-inventory-level fees] is “Amazon will charge fees”
[Recommended days of supply] is “Last 30 days”
[Low-inventory-level fees] is “Amazon will charge fees”
Four Steps to Clear Excess Inventory
● Help sellers clear slow-moving inventory to reduce overage fees, aging inventory surcharges, and storage utilization surcharges
Storage Capacity Manager
● Manage storage capacity
● Help reduce overage fees and storage utilization surcharges
Storage Capacity Manager
Shows you the storage capacity available for different product size tiers over the next three months. When you need to restock but don’t have enough storage capacity, you can request additional storage capacity using the "创建新请求" button at the bottom.
Returns: reduce the return rate, return losses, and Returns Processing Fee
Goal:
Reduce return rate
Key Metrics:
● Return rate is below the category threshold
Related fees:
● Returns Processing Fee
Returns Processing Fee charged for high-return-rate items whose product return rate exceeds the return rate threshold for that category
Returns Processing Fee charged for high-return-rate items whose product return rate exceeds the return rate threshold for that category
How to view key metrics
Go to Seller Central – Inventory – Fulfillment by Amazon Returns
On this page, you can view a product’s return rate, the historical trend of its return rate, and the historical trends of quantity delivered, returned items, and the number of returned items.
Optimization recommendations
What Amazon did: provide efficient after-sales support
● Customer service: Amazon uses a network of customer service specialists across more than 130 locations worldwide to provide 24/7 customer service in local languages through chat, phone, or email, helping sellers respond to customer inquiries.
● Returns and refunds: When a return occurs, Fulfillment by Amazon (FBA) will manage the product return for you, reducing the time you spend and making operations easier and more efficient.
How sellers can optimize return rates
● Analyze the reasons for returns
● Improve product information and provide customers with sufficient guidance to avoid returns
How sellers can reduce return costs
● Returns Processing Fee
Sellers can refer to the above suggestions for optimizing return rates to keep return rates below the appropriate category threshold to avoid being charged return processing fees
What Amazon does: provide efficient after-sales support
After-sales service: Amazon uses a network of customer service specialists in more than 130 locations around the world to provide 24/7 customer service in local languages through chat, phone, or email, helping sellers respond to customer inquiries.
Returns and refunds: when a return occurs, Fulfillment by Amazon (FBA) will manage product returns for you, reducing your time costs and making operations easier and less effort-intensive.
Returns and refunds: when a return occurs, Fulfillment by Amazon (FBA) will manage product returns for you, reducing your time costs and making operations easier and less effort-intensive.
Efficient tools for returns and post-purchase support
Analyze return reasons
● Helps prevent future returns and avoid return losses and return processing fees
Voice of the Customer (VOC)
For products with a low return rate but many negative experiences: powered by a large language model, this helps sellers understand customers’ satisfaction with products in their store, as well as the negative customer experience for individual products, the number of feedback submissions, the content and share of each type of negative feedback, and initial action recommendations to address negative feedback.
Customer Return Dashboard (CRD)
For products with high return rates: shows detailed FBA return data to help you identify how to improve your products, including the number of returns, return rate, main reasons for returns, return data and information, as well as AI language model-powered analysis of return reasons and recommendations based on return data and reviews.
Fit Insights Tool (FIT)
For apparel, shoes, and handbags products: AI technology is used to analyze return data, size charts, and customer reviews about size, quality, and price to help sellers identify and resolve size and fit issues in product catalogs.
Improve listing information
● Helps prevent product returns and avoid return losses and return processing fees
Size Chart Self-Service Tool (SIT)
Sellers can provide detailed size charts themselves and apply them to one or more ASINs, reducing return rates caused by incorrect size selection.
Product Post-Purchase Support (PLS)
After the customer clicks to request a return, PLS can provide sellers with materials such as after-sales support videos, OEM after-sales support, and product operation documents, so they can offer timely guidance before the customer makes a final decision to return the item, help reduce returns to some extent, and give customers a good purchasing experience.
Analyze return reasons
● Helps prevent future returns and avoid return losses and return processing fees
Voice of the Customer (VOC)
Applies to products with a low return rate but many negative customer experiences: by using large language model analysis, sellers can understand customer satisfaction with products in their store, as well as each product’s negative customer experiences, the number of feedback items, the content and share of each type of negative feedback, and initial recommended actions to address negative feedback.
Customer Returns Panel (CRD)
For products with high return rates: view detailed FBA return data to help you identify how to optimize your products, including the number of returns, return rate, main reasons for returns, return data and information, as well as AI-powered analysis of return reasons and recommendations based on return data and reviews.
Fit Insights Tool (FIT)
For apparel and footwear products: AI technology is used to analyze return data, size charts, and customer reviews about size, quality, and price to help sellers identify and resolve size and fit issues in product catalogs.
Improve product information
● Helps prevent product returns and avoid return losses and return processing fees
Size Chart Self-Service Tool (SIT)
Sellers can provide detailed size charts themselves and apply them to one or more ASINs, helping reduce return rates caused by incorrect size selection.
Product Support Services (PLS)
After the customer clicks Return request, PLS can provide the seller with resources such as after-sales video services, OEM after-sales services, and product instruction documents, so the seller can offer timely guidance before the customer makes a final decision to return the item, help reduce returns to some extent, and give the customer a good buying experience.
Analyze return reasons
● Helps prevent future returns and avoid return losses and return processing fees
Voice of the Customer (VOC)
For products with a low return rate but many negative customer experiences: uses large language model analysis to help sellers understand customer satisfaction with products in their store, as well as the negative customer experience for individual products, the amount of feedback, the content and share of each type of negative feedback, and initial recommended actions to address negative feedback.
Customer Returns Panel (CRD)
For products with high return rates: shows detailed FBA return data to help you identify how to optimize your products, including FBA product return quantity, return rate, main return reasons, return data and information, as well as AI-powered analysis of return reasons and recommendations based on return data and reviews.
Improve Listing Quality
● Helps prevent product returns and avoid return losses and return processing fees
Size Chart Self-Service Tool (SIT)
Sellers can provide detailed size charts themselves and apply them to one or more ASINs, reducing return rates caused by selecting the wrong size.
Best practice example
Seller Xiao Wang
Selling marketplace: United States
Products sold: Apparel (including activewear and accessories)
Fulfillment method: Fulfillment by Amazon (FBA)
Product size: small standard
Product size: small standard
Product size: small standard
Action
Fee changes (per item)
Sales change (per item)
First-mile logistics
● Reduce the item price from $10 to $9.99 to qualify for the low-price apparel referral fee and low-price FBA rate
Referral Fee -$1.2
Weight Handling Fee -$0.77
Weight Handling Fee -$0.77
● Optimize product packaging and use Ships in Product Packaging to get a discount on fulfillment fees
Weight Handling Fee -$0.77
● Optimize how you pack mixed boxes, and try to make sure the product mix and quantity in every box are the same so you can choose an inbound option with no Inbound Placement Service fee
Inbound Placement Service Fee –$0.27
● Use Amazon-managed cross-border transportation, send mature products to Amazon Warehousing and Distribution and enable automatic replenishment, and send new products directly to Fulfillment by Amazon
Inbound Defect Fee –$0.04
Sales increase +$1.49
(15% increase in average sales)
Inventory health
● Follow Amazon’s restocking recommendations to keep inventory above the minimum level
● Monitor your storage capacity and increase revenue while reducing costs in a timely way
● Use the four-step method to clear excess inventory and promptly clear slow-moving inventory
● Monitor your storage capacity and increase revenue while reducing costs in a timely way
● Use the four-step method to clear excess inventory and promptly clear slow-moving inventory
Low-inventory-level fees -$0.6
Overage fee -$2.5/month*
Overage fee -$2.5/month*
(Calculated based on exceeding the limit for 50% of the days in the month)
Aging inventory surcharge -$0.15
(Calculated based on the original product's storage age exceeding 365 days)
Storage utilization surcharge -$0.22*
Sales lift +$1.49
(15% increase in average sales)
Returns and after-sales service
● Provide accurate size information and the manufacturer’s contact information to keep the return rate below the threshold
Returns Processing Fee –$1.65
Avoid losses from returns +$6.73
(Based on an average 68% reduction in return rate)
$7.47 in cost savings
Revenue increased by $9.71 (+98.1%)
*Calculated based on 2 items per cubic foot
Frequently Asked Questions
first-mile inbounding
Will FBA Fulfillment fees be reduced after the new inbound placement service fee is introduced?
To use the Amazon network more efficiently, Amazon charges separately for inbound and outbound activities and provides you with more flexible Inbound Placement Service options. Starting April 15, 2024, Amazon will lower Fulfillment by Amazon fulfillment fees by an average of $0.20 per item for sortable products and by an average of $0.61 per item for large bulky products. Starting on the same day (that is, 45 days after receipt of the shipment), Amazon will also begin charging for the Inbound Placement Service for the first time. You can choose from different inbound placement options, and depending on how you send products to us, you can reduce or completely avoid these inbound fees.
Pro Tips:
You can use the FBA Revenue Calculator to estimate fees for a single SKU or multiple SKUs. The new Inbound Placement Service fee and reduced FBA fulfillment fees were updated in the calculator on 3/15.
Pro Tips:
You can use the FBA Revenue Calculator to estimate fees for a single SKU or multiple SKUs. The new Inbound Placement Service fee and reduced FBA fulfillment fees were updated in the calculator on 3/15.
Do oversized products incur the Fulfillment by Amazon inbound placement service fee?
The FBA inbound placement service fee does not apply to oversized products. For more information, go to size bands.
Why do I only see one or two Inbound Placement Service options when creating certain shipment plans?How can I maximize the number of available inbound options?
A number of factors are taken into account when providing inbound configuration options, and the system will only display the corresponding inbound configuration options if the seller's shipment meets the requirements.
Factors that affect the number of inbound placement options include:
- Whether the shipment includes standard-size, non-sortable, or special-handling-category products
- Whether each box contains the same SKU mix and quantities
- Quantity per item and number of boxes
- The seller’s current inventory levels in FBA and where buyer demand is located.
Tips:
To maximize the number of inbound placement options, try the following:
• Create separate shipments for standard-sized products, non-standard-sized products, and products in each special handling category
• Make sure the combination and quantity of products are the same in all boxes
• Increase the number of boxes
Please note that the “ship-from address” entered when you create a shipment does not affect the inbound placement options or the assigned warehouses. We recommend using the actual ship-from address to access more logistics solutions (for example, only when you use a ship-from address in China can you choose the SEND Amazon Partnered Carrier program)
Factors that affect the number of inbound placement options include:
- Whether the shipment includes standard-size, non-sortable, or special-handling-category products
- Whether each box contains the same SKU mix and quantities
- Quantity per item and number of boxes
- The seller’s current inventory levels in FBA and where buyer demand is located.
Tips:
To maximize the number of inbound placement options, try the following:
• Create separate shipments for standard-sized products, non-standard-sized products, and products in each special handling category
• Make sure the combination and quantity of products are the same in all boxes
• Increase the number of boxes
Please note that the “ship-from address” entered when you create a shipment does not affect the inbound placement options or the assigned warehouses. We recommend using the actual ship-from address to access more logistics solutions (for example, only when you use a ship-from address in China can you choose the SEND Amazon Partnered Carrier program)
What happens if I create a shipment plan that includes standard-size items, non-standard-size items, or special-handling category items at the same time?
This may reduce the available inbound placement options. In addition, seller inventory may be sent to multiple inbound locations, even if the seller selects the minimum shipment splits placement option (for example, a receiving center for sortable products and a receiving center for non-sortable products). In this case, even if shipments are sent to multiple locations, the minimum shipment split rate will still apply to each shipment in the shipment plan.
Pro Tips:
We recommend that sellers create separate shipment plans for sortable products, non-sortable products, and products in each of the following categories:
• Apparel
• Jewelry
• Footwear
• Watches
• dangerous goods (hazmat)
Pro Tips:
We recommend that sellers create separate shipment plans for sortable products, non-sortable products, and products in each of the following categories:
• Apparel
• Jewelry
• Footwear
• Watches
• dangerous goods (hazmat)
What happens if I don’t send my inventory to the Amazon fulfillment center specified in the inbound plan, or if I send an incomplete shipment (remove or abandon part of the shipment)?
Amazon will charge the seller the Fulfillment by Amazon inbound placement service fee 45 days after receiving the shipment, based on the actual inbound location and quantity received. If the shipment is sent to a location different from the inbound plan (a misrouted shipment), or does not arrive at the Amazon fulfillment center within the time frame specified in the inbound policy (a deleted or abandoned shipment), Amazon will charge a Fulfillment by Amazon inbound service fee based on the shipment actually received and the inbound location, and this fee may be higher than the estimated fee at the time the shipment was created.
Quick tip:
1. After you create a shipment, ship it to the fulfillment centers assigned in the shipment plan and in the specified product quantities
2. Create products with similar ship dates and transit times in the same shipment plan
3. Ship as soon as possible after creating a shipment. If for any reason you are temporarily unable to ship, or if you want to change an approved shipment plan, you must delete all shipments in that plan before you begin shipping any shipment in that plan
Quick tip:
1. After you create a shipment, ship it to the fulfillment centers assigned in the shipment plan and in the specified product quantities
2. Create products with similar ship dates and transit times in the same shipment plan
3. Ship as soon as possible after creating a shipment. If for any reason you are temporarily unable to ship, or if you want to change an approved shipment plan, you must delete all shipments in that plan before you begin shipping any shipment in that plan
Warehousing and Distribution
Why is Amazon charging a low inventory fee?
When sellers keep inventory levels too low for a long time, Amazon can’t optimally place inventory in advance at warehouses closest to customers. This will slow delivery speeds, increase Fulfillment by Amazon costs, and also affect sellers’ sales velocity and product conversion.
Do I need to pay the low inventory cost coverage fee if my product is out of stock?
No. Amazon does not charge a low inventory cost coverage fee when a product is out of stock (that is, the product has no sellable inventory in the Amazon fulfillment network).
How do inbound delays (for example, delays in receiving inbound products) affect historical days of supply?
The low inventory cost coverage fee is calculated by dividing the average daily number of inventory units by the average daily number of shipped units over the long term (past 90 days) and the short term (past 30 days). A minor inbound delay will not affect your long-term historical days of supply metric (past 90 days). Amazon recommends managing products’ long-term (past 90 days) historical days of supply to avoid this fee.
How will the low inventory level fee affect different product types (such as seasonal products)?
Different products with different sales volume may be impacted differently by the fee. However, you can minimize or avoid the fee by sending in additional units such that the product’s short-term (last 30 days) historical days of supply exceeds 28 days, or by managing your product’s long-term (last 90 days) historical days of supply. For specific seasonal product examples, go to the Seller Central Help page.
What is the relationship between Fulfillment by Amazon minimum inventory level metrics, historical days of supply, and the low inventory cost coverage fee?
Minimum inventory levels are a forward-looking metric that can help you plan future Fulfillment by Amazon inventory replenishment. We use Amazon’s inventory management and machine-learning models, while also considering factors such as demand forecasts and replenishment settings, to customize minimum inventory levels for each product. Keeping your inventory above this minimum level can help improve delivery speed and reduce the risk of incurring low inventory cost coverage fee. For more information, go to Fulfillment by Amazon Inventory Overview.
Historical days of supply is a backward-looking statistical metric that is used as the basis for the low inventory level fee. When the historical days of supply metric is low, it means the product’s inventory level has been low in the past, so the corresponding fee applies.
Historical days of supply is a backward-looking statistical metric that is used as the basis for the low inventory level fee. When the historical days of supply metric is low, it means the product’s inventory level has been low in the past, so the corresponding fee applies.
What should I do if capacity limits prevent me from sending in products with low inventory levels?
To manage inventory efficiently, keep the amount of inventory you hold balanced: not too much (excess), and not too little (low inventory or out of stock). If you are unable to send in products with low inventory levels due to capacity limits, we recommend taking the following actions to reduce excess inventory: increase sell-through, create liquidation orders, or request inventory returns or disposals through removal orders. Go to FBA Inventory and identify products with excess inventory.
Getting Started: New Seller Guide
Global business opportunities
