I’m doing my first FBA 5 split SPD shipments this year. The UPS cost for the packages have certainly gone up, compare to last time in Aug '24.
One thing I don’t understand is one of the package is going to Stockton, CA, which is the shortest in distance (fr OR to CA) of all 5 pkgs, but the cost is the highest.
The UPS cost of the packages that goes to CA from OR used to be cheaper than the ones that go all the way across the country. When did this change happen & why?
The reason I was doing 5 split FBA shipments last year was because even with paying for the cost of 5 packages, it was still cheaper than paying the Placement fee.
But now with the shipping cost gone up, for this 5 split shipment, I only saved about $1.55, and that’s not counting the cost of extra labels, boxes and the time to do 5 pkgs. Next time, I might just going back to “all in one box”, pay the placement fee and save on shipping cost and preparation time.
Did you look at the individual labels? Sometimes Amazon changes the destination mid-stream without telling the seller.
What I mean by that is what you see on the screen isn’t always what you get. I’d say 50% of the time this happens to us.
Workflow says shipment 1 is going to XYZ. When you print it, it’s somewhere else.
Other than that, what you are describing is unusual, including the rate increase. We ship 5 shippers 18X14X14 (29lbs each) all over the country for less than 60 bucks, which is unbeatable.
Each shipper contains 144 units. That’s $39 in savings for each box (no placement fees).
Avg shipper freight = $12 - Origin - 40 miles north of NYC
I haven’t print out the labels yet, but will keep an eye out for any changes.
The 5 FCs Amazon gave me were:
IND9 (IN), SWF2 (NY), IAH3 (TX), MQJ1 (IN): Estimated carrier charges: $5.71 each.
SCK4 (Stockton, CA): Estimated carrier charges: $6.15
So, for 5 (1lb) packages from OR, the total shipping fee for this shipment is $28.99
All together there are 140 units, so if I ship them all in one pkg to a east coast FC, the placement fee is $22.4 ($0.16/unit), and I think the shipping might be around $8, and that’s about $1.50 more compare to the 5 pkgs shipment.
Since I’m all ready for the 5 pkgs, just going to go with those 5 FCs this time, but will rethink about the 5 split shipment next time, especially if I don’t need to sent as much inventory.
I might just wait until tomorrow to finalize this shipment to see whether UPS cost is the same. Maybe they quote a higher fee on Sunday?
Yea, the charges kind of make sense actually. There’s a min… I know this stuff is small and light. Didn’t earlier.
Splitting still makes sense IMHO because if you go to 1 DC, and it’s backed up, you’re SOL.
Going to 5 DC’s guarantees a quick check in at least one of them.
In addition to what @ASV_Vites said above, remember that if you send to one FC your stuff will get sent around the country to other FCs which could take over a month to complete. Yes they are sellable during that time, but I swear the algorithm penalizes you while they are in transit. As soon as everything gets where it’s going our sales are always better. Could have to do with the fact that the product is closer to more customers.
-Ana
You are not imagining this. Basically it can be seen in longer time to the buyer - a conversion killer. The very reason why FBA sellers have a better show at succeeding on the marketplace for commodity / staple items.
It’s not really Amazon that’s penalizing you, it’s just simple math. People want their stuff now, not 3 days from now. If it’s not at the closest FC to the buyer, it’s a wait, and sometimes (often), a lost sale if there’s something like it that will arrive sooner.
You’re 100% right on that. Some sellers want to cover the sun with their finger and don’t believe it but faster delivery sure does mean more sales. I’m with you all the way on this. Just didn’t think about transfers as shipping delay, but that’s what it is for sure.
-Ana