Amazon’s Inbound Placement Service is part of the Fulfillment by Amazon (FBA) process. It allows sellers to consolidate their inventory shipments to specific Amazon fulfillment centers instead of splitting shipments across multiple locations. However, it comes with added fees, which can be a point of confusion, especially for new sellers.
NOTE: Instructions for setting Inbound Placement Service Options are near the bottom of this article.
What is the Amazon Inbound Placement Service?
Normally, when inventory is sent to Amazon for FBA, Amazon decides which fulfillment centers products should go to. This often means sellers will need to split their shipments and send different portions to various locations. The Inbound Placement Service lets sellers bypass that complexity by allowing them to ship all their items to a single Amazon warehouse or a select few centers, simplifying the logistics on their end.
Why Use the Service?
The main reason sellers opt for this service is convenience. If sellers are managing inventory themselves, they might find it easier and more cost-effective to send all items to one location rather than dealing with multiple shipments. It could save time, reduce errors, and lower shipping costs. However, Amazon will charge for this convenience.
Using Prep It Pack It Ship It to fulfill FBA shipments allows sellers to prioritize cost savings over convenience.
Inbound Placement Service Options
Amazon gives sellers three placement options when using the Inbound Placement Service:
Amazon-Optimized Shipment Splits
Amazon-optimized shipment splits are the default option used by Amazon. In this option, Amazon determines which fulfillment centers to send the inventory to, based on its own network optimization. This means that Amazon may split the shipment into multiple packages going to different fulfillment centers, depending on demand, product type, and space availability across its network.
There is no placement fee when using this option.
Partial Shipment Splits
Partial shipment splits allow sellers to consolidate some of their inventory into fewer fulfillment centers but still involves splitting shipments. This option gives sellers a bit more control compared to the Amazon-optimized option but doesn’t completely eliminate the splitting of shipments.
Inbound Region Selection Required: Sellers need to select an inbound region when using this option. This helps Amazon determine which part of the country the inventory should be sent to, allowing for a certain degree of centralization in the shipment process.
Minimal Shipment Splits
Minimal shipment splits are designed for sellers who want to send the majority, or all, of their inventory to as few fulfillment centers as possible, typically one or two locations. This option is ideal for sellers who prioritize simplicity and prefer to deal with fewer shipments.
Inbound Region Selection Required: Like partial shipment splits, sellers are required to select an inbound region. This allows Amazon to direct shipments to specific regions, reducing the likelihood of sending inventory to distant fulfillment centers.
Both Partial and Minimal Shipment Splits will incur placement fees.
Which Inbound Placement Service Option is best?
Most sellers will find the free Amazon-Optimized Shipment Splits to be the best choice, especially if using a third-party prep center like Prep It Pack It Ship It to prepare their FBA shipments.
However, some FBA shipments will save on shipping costs by reducing the number of splits. This is especially true of LTL shipments as pallets of inventory can often be consolidated.
Sellers can determine their costs in both shipping and placement fees by starting a test shipping plan using the actual number of SKUs and units in their FBA shipment. Amazon will provide an estimate of all fees before finalizing the shipping plan. Please ask us if you require assistance with this step.
How to Select Inbound Placement Service Options in Seller Central
To select the shipment split settings in Seller Central, follow these steps to configure the appropriate options for your inbound shipments.
Step 1: Log in to Seller Central and hover over the settings icon in the upper right-hand corner. Select 'Fulfillment by Amazon' in the drop-down menu.
In the Fulfillment by Amazon settings page, scroll down to the section labeled 'Inbound Settings'.
Look for the 'Inventory Placement Option'. Select 'Edit'
Step 2: Select the Shipment Split Option
You will see three options for handling inventory placement:
Amazon-Optimized Shipment Splits - This option will already be selected by default. Amazon will automatically choose the fulfillment centers for your shipment. If you wish to keep the default setting, no further action is needed.
Partial Shipment Splits - If you prefer partial shipment splits, select this option from the menu.
You will be prompted to choose an inbound region.
Minimal Shipment Splits - For minimal shipment splits, select this option. Like the partial split, you will need to select an inbound region to consolidate your shipments to fewer fulfillment centers.
Be sure to confirm and save your changes.
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