Amazon FBA | Fee Updates: New Inventory Placement & Low Inventory Fees Effective March 1 & April 1

Urgent Announcement – Must-Read for Sellers!

Attention Amazon US Sellers!
➤ Effective March 1, 2024: FBA Inventory Placement Service Fee is now active!
➤ Effective April 1, 2024: FBA Low Inventory Level Fee will apply!

1. Inventory Placement Service Fee

What Is It?

The Inventory Placement Service Fee is an Amazon service designed to help sellers optimize inventory distribution and improve delivery speed. It offers flexible inbound options to reduce FBA shipping costs while ensuring faster customer deliveries.

Key Changes (Effective March 1, 2024)

• Fees vary based on product size, shipment weight, destination, and placement option.

• Amazon will charge the fee within 45 days after inventory arrives.

Service Options

🔹 Single Placement (Consolidated Shipment)

• Ship inventory to one Amazon fulfillment center, and Amazon distributes it across its network.

• Fee varies based on distance to the assigned warehouse.

🔹 Distributed Placement (Multi-Location Shipment)

• Ship inventory directly to multiple Amazon fulfillment centers.

• Lower or waived fees (depending on shipment volume and compliance).

• Amazon recommends this option for cost efficiency.

2. Low Inventory Level Fee (Effective April 1, 2024)

What Is It ?

Amazon will charge a Low Inventory Level Fee if:

• Your standard-size products consistently have insufficient stock relative to demand.

• Low inventory disrupts Amazon’s distribution efficiency, increasing delivery costs.

How to Avoid This Fee?

✔ Maintain at least 4 weeks of inventory based on sales velocity.
✔ Exemptions apply for:

• New Professional Seller Accounts (first 365 days).

• New Parent ASINs (first 180 days, if enrolled in FBA New Selection Program).

• Products using Amazon Automated Replenishment.

3. Key Changes & FAQs

❓ What Happens to the Multi-Destination Discount Program?

• Ends on February 29, 2024.

• Shipments created after March 1 will no longer qualify for split-shipment discounts.

❓ What Replaces the Old Inventory Placement Service?

• Discontinued on February 29, 2024.

• From March 1, sellers must use the new FBA Inventory Placement Service.

4. Cost-Saving Tips for Sellers

📊 Use the Amazon Revenue Calculator

• Compare fees across different fulfillment options.

• Estimates include:

      • Referral fees

      • FBA shipping fees

      • New Placement Service fees

      • Monthly/long-term storage fees

      • Transaction fees

👉 Free for all Amazon sellers!

💰 Save Up to $400 with AWD (Amazon Warehousing & Distribution)

• Avoid Placement & Low Inventory Fees with AWD for automatic FBA replenishment.

• Benefits:

    ◆ Auto-replenishment based on sales forecasts.

    ◆ Lower storage costs vs. standard FBA.

    ◆ Seamless inventory management (7-14 day replenishment cycle).

    ◆ Items remain sellable even during stock transitions.

🚀 Act Now! Optimize Your FBA Strategy Before Fees Take Effect!

📌 Check the Revenue Calculator → Minimize costs.
📌 Consider AWD → Avoid placement & low inventory fees.
📌 Adjust stock levels → Stay exempt from penalties.