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Marketplaces

Inbound Placement Fee (Amazon)

Definition

An Amazon fee for sending FBA inventory to fewer locations than Amazon would prefer. Amazon charges to redistribute it across its network, while spreading shipments across more locations lowers or removes the fee.

This fee is really part of the cost of getting inventory to Amazon, so it belongs in landed cost, not in general selling expenses.

The best option depends on your freight costs for each split. Watch for: comparing placement options without adding your own freight, which can make the "cheaper" option more expensive overall.

Example

Shipping 3,000 units to a single Amazon location adds a placement fee per unit. Splitting the shipment across several locations lowers it, but your own freight cost rises.

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