FBA placement fees; the good and bad

You are correct that this is something that should be analyzed but for us at least, it’s never been the case where splitting didn’t save $.

With that said, we have paid placement fees a few times in the spirit of saving time / labor internally, especially on our largest (dimensional size) ASIN, where SPD wasn’t a good option and multiple pallets of the qty wouldn’t make sense.

It’s certainly a game you need to play to win but knowing what I know about TT’s volume in the past, and the dimensions of what he sells, 5-way splitting of pallets should = a win, and perhaps higher margins than before the placement fees were implemented.

That last piece above has a caveat though and that’s who the carrier is. If you get a 5-way pallet split AND Amazon Freight vs. anyone else, it’s a major margin score.

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And the shipment splits should appear under “Amazon-optimized shipment split” - unavailable and play with the pallets to see if I can get it?

That’s for 4 pallets

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Tried 1-4 pallets to no avail. Amazon optimized shipment split is unavailable.

I might try SPD for a few boxes and then for pallet tomorrow post system reset?

Thoughts?

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To be able to get the no placement fee option, you need to do 5 shipments of same items/quantity, basically have to plan quantity in increments of 5.

Also, Amazon default showing the option of the middle box (2-4 shipments), even when 5 shipment is available.

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That may be the issue, which folks mentioned earlier and I glossed over like a noob. Ha!

Oh man. More testing.

Thank you!

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I have a lot of catching up to do :slight_smile:

:pray:

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There you go. You got it…

Now you need to make sure your freight for splitting isn’t more than what you are saving (it shouldn’t be). If you get Amazon Freight for 2 or more of the 5, you win.

The only problem is you can and will get multiple carriers involved which means multiple trucks coming for pallets. That’s the annoying part. Not an issue for us because of where we ship from (the factory that makes the stuff) ,but it still annoys the team for a variety of reasons.

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FWIW, I’ve found one of the positives of splitting shipments is I’m not relying only on one fulfillment center. If one is impacted, some of my stuff still makes it through and tides them over until all of them come in.

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Exactly!!!

It’s great actually.

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