New 2024 FBA Inbound Placement Fee, AMP Service

Since March 1st, 2024, when we gained the ability to determine the number of shipment splits and were introduced to new placement fees, our shipping costs for each product have surged, ranging from two to five times more compared to pre-update rates.

To illustrate, before the update, sending one pallet (36 cases, 720 units) of a particular product incurred a cost of only $104.06. Post-update, the expense has soared to a minimum of $460.58, without any option to split the shipment using LTL or SPD. This represents a staggering increase of approximately 342.16%.

Selecting the "Amazon Optimized" option with 4 or more splits is not possible; the option appears greyed out, and no choices are available to reduce the costs incurred after the update.

We've observed a change in Amazon's typical optimization of our shipments, as the usual fulfillment centers are no longer in use. Instead, we are compelled to send pallets to fulfillment centers where our products have never been shipped before.

A peculiar coincidence emerged when, seven days later, we received an email invitation from Amazon to explore their new service called Amazon Managed Placement (AMP).

The email we received:

"Amazon Managed Placement (AMP) enables cross-border shipping directly to a US destination without incurring the FBA inbound placement service fee. With AMP, you can send your inventory to a single location, and Amazon will strategically distribute it across multiple fulfillment centers to optimize in-stock placement. We are thrilled to announce the launch of AMP, scheduled to commence on March 1, 2024."

Clearly, we are being pressured to adopt their new services as a means of survival, avoiding financial setbacks that could potentially sink us. This situation forces us to relinquish more control to Amazon, against our own preferences.

I seek assistance from fellow sellers within the community to share strategies aimed at reducing or completely offsetting the newly incurred costs. The predicament of surviving when Amazon imposes such changes on the very sellers it considers partners is a pressing issue that requires collective insight.