Amazon's Double Whammy Placement Fees
I've been browsing through forums, taking in the widespread frustration regarding the new inbound placement fees, and the situation seems to be reaching a boiling point. It's astounding to see shipment costs skyrocket from $8 - $14 per box to an exorbitant $90 - $140. However, I've noticed a significant piece of the puzzle that many seem to be missing. It's not just about the increased fees for placements; there's an additional layer where we're being penalized for failing to maintain sufficient stock levels to meet demand. This essentially forces us to increase the frequency of our shipments to ensure our inventory levels are adequate. Failure to do so results in per-unit charges. Amazon's strategy seems to be pushing us into a corner where we're compelled to send more units, all the while increasing the costs for placement.
This change is particularly impactful for those of us with one or two ASINs teetering on the edge of not meeting the required inventory levels, prompting a need to replenish with a SPD shipment.
As a potential workaround, I'm considering sending a larger shipment to Amazon's storage and distribute. This would allow Amazon to automatically pull inventory as needed, potentially helping to circumvent these fees. Or just switch to FBM.
PS: if Amazon doesnt want us to use their warehouses... their doing a good job at sticking it to small businesses
Amazon's Double Whammy Placement Fees
I've been browsing through forums, taking in the widespread frustration regarding the new inbound placement fees, and the situation seems to be reaching a boiling point. It's astounding to see shipment costs skyrocket from $8 - $14 per box to an exorbitant $90 - $140. However, I've noticed a significant piece of the puzzle that many seem to be missing. It's not just about the increased fees for placements; there's an additional layer where we're being penalized for failing to maintain sufficient stock levels to meet demand. This essentially forces us to increase the frequency of our shipments to ensure our inventory levels are adequate. Failure to do so results in per-unit charges. Amazon's strategy seems to be pushing us into a corner where we're compelled to send more units, all the while increasing the costs for placement.
This change is particularly impactful for those of us with one or two ASINs teetering on the edge of not meeting the required inventory levels, prompting a need to replenish with a SPD shipment.
As a potential workaround, I'm considering sending a larger shipment to Amazon's storage and distribute. This would allow Amazon to automatically pull inventory as needed, potentially helping to circumvent these fees. Or just switch to FBM.
PS: if Amazon doesnt want us to use their warehouses... their doing a good job at sticking it to small businesses
8 replies
Seller_z2EMuTXiRA4y5
Today was the first time I've seen the placement fees.
I personally already ship from Canada to the US where there are no partnered carrier options. So Shipping is costly. Now we have placement fees on top which is basically just doubled my already huge shipping costs.
Slowly but surely Amazon is weeding me out of this business. I've been doing it for 8 years now and what began as quite a good business is now a daily struggle with most of my profit going to Amazon through either fee increases, lost inventory (that Amazon won't admit to), continual software glitches and now new fees.
They really are the worst business partners I've ever had. Unfortunately they are the big dog (and they know it).
Seller_rV9pPNGDqQ9kP
What no one is talking about is now amazon lets US FBA sellers ship into Canada from US warehouses. Being 10 times our size a US seller could have 1000 units in stock and peel off maybe another 50 to Canada (without needing to stock anything in Canadian warehouses) no big deal on managing their US inventory, where in Canada we have to manage much lower inventory levels @ 1/10 the sales volume. At the same time amazon will not ship product in Canadian FBA warehouses to the US. ???? Additionally amazon seems to be able to sell into Canada from US warehouses without collecting Provincial/HST tax on low dollar items. However if we sell into the US shipping ourselves to the US amazon will collect sales taxes on any amount even though US DE MINIMIS is $800USD versus ours starting at $20/40 depending how ship. So we are disadvantaged in Canada while equal or lesser footing in Canada. This is not necessarily amazon's fault, they are just taking advantage of loopholes it's our government being 10 steps behind. Now on top of that, if we stock US warehouses they will not send returns back to a Canadian address. Why Not when they can ship US product up here no problem? This would make it much easier to use US FBA if they would send items back to Canada. Why they won't let us sell into the US from Canadian warehouses though I don't understand. I would think easier that direction as shipping into Canada has always had more red tape than shipping to the US. Hopefully they are working on it.
Seller_5wa3H6oQIsRfp
I think amazon is weeding out abritrage sellers. the same sellers who would have 10-15 stock of an item they may get from a clearance sale at Walmart may be competing on the same listing as a authorized distributor and racing price to the bottom. this is a good way to level the playing field.
Seller_uwd5srFtoYQLu
Are you seeing placement fees on stock sent by UPS or just LTL?
Seller_xJx7vH6fvZFD9
wasn't this for US only?
I haven't seen it yet in Canada, perhaps im just lucky?
