E564: 3 Ways to Reduce Inbound Placement Fees

The Ecomcrew Ecommerce Podcast

In this episode, Dave discusses how to reduce inbound placement fees with Amazon, how placement fees are calculated and who the winners and losers are since these fees were implemented.

Today's episode is sponsored by Clearco, a company that provides ecommerce businesses with working capital to fund inventory, marketing, shipping and logistics, and more! Check them out today!

It's been a few months since Amazon implemented their new Inbound Placement Fees.

The amount of increase varies, depending on the product, warehouse location, and other factors. But the good news is that you don’t always have to pay the fees.

In this episode, we’ll explore the 3 ways you can use to avoid or reduce your Inventory Placement Fee when sending products to Amazon.

The Big Takeaways

1. Shipping to four or more locations can help avoid placement fees.
2. Shipping to Amazon Warehousing and Distribution (AWD) can also help avoid placement fees, although it may come with other fees such as receiving and warehousing fees.
3. Choosing a more centralized 3PL can help minimize placement fees and partner carrier fees.

Timestamps

• 00:00 - Introduction to Placement Fees
• 02:20 - Amazon Warehousing and Distribution (AWD) as a Solution
• 10:53 - Ship into AWD to Avoid Placement Fees
• 13:48 - Consider the Location of Your 3PL
• 17:09 - Impact of Placement Fees on Profitability

As always, if you have any questions or anything that you need help with, reach out to us at [e-mail] if you're interested.

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Thanks for listening!

Until next time, happy selling!