It can be frustrating trying to arrange a freight forwarder to ship your products to Amazon FBA from China. It gets even more frustrating when Amazon decides to split your shipment into 3+ locations. Not only will this run-up costs but creates additional work. But don’t worry there is a way to fix this that can save you a little money depending on your situation and that is Inventory placement service.
Inventory placement service allows you to send all of your inventory to a single location that is determined by Amazon.by default your seller’s account is set to distributed inventory placement. So if you want all of your inventory to goto one warehouse then you need to change your settings. While this all might sound too good to be true Amazon does charge an extra fee for this service.
Amazon Inventory Placement Service
By default, your account is set to distributed inventory placement. This is why your orders will sometimes be sent to multiple warehouses. Amazon does this because it saves them time, they want your product distributed across a number of different warehouses so it can get to your customers faster across the United States. Now since you are sending it to one warehouse. Amazon will have to distribute your products itself after they arrive at there destination. Which in turn is why they charge a fee for you to use this service.
If you are using a freight forwarder then having them create multiple shipments will increase your cost. So in order to save money, you can use the inventory placement service. Now, this service won’t be the cheapest option for everyone. If you are sending products to FBA from your house then I would just use the distributed inventory placement. Even if your products are going across country it still might be cheaper.
Pricing for Inventory Placement
Standard Size Per Unit Pricing
|1 lb or Less||$0.30|
|1lb to 2 lb||$0.40|
|2 lb or more||$0.40 + $0.10 lb per pound over 2 lb|
Over Sized Per Unit Pricing
|Less than 5lb||$1.30|
|More than 5 lb||$1.30 + $0.20 per lb over 5lb|
As you can see. the pricing can be quite expensive if you are shipping a large number of orders. So keep that in mind when you are choosing this method.
How to Send inventory to One Warehouse
1. Log into your Seller Central Account
First login to seller central and let it take you to the homepage.
2. Go to “Settings”
Click “Settings” at the top right corner of the home page. There will be a dropdown menu. At the very bottom of the dropdown select “Fulfillment by Amazon”. This will take you to the next page.
3. Click Edit next to “Inbound Settings”
Scroll down to the “Inbound Settings” section. Click edit on the right-hand side to proceed.
4. Change the Inventory Placement Option.
Now we are able to change the inventory placement method. Under “Inventory Placement Options” there should be two options ” Distributed Inventory Placement” and “Inventory Placement Service”. Select “Inventory Placement Option” then hit update at the bottom of the screen.
5. That’s it
If you want to confirm that your inventory is going to one where house. Just create an FBA shipment to see where it is placed. It should be placed now in one warehouse instead of multiple.
Now, remember this might not be the best option for everyone. It depends on how much it cost to send your inventory by split or directly to a single warehouse. I will always double-check both options to see what works best for you. If you are using a freight forwarder most of the time this is a cheaper option.