Amazon FBA Inventory Service Update: Optimize Shipments for Efficiency

1. Updates to Warehouse Options: A Detailed Look at Amazon’s Optimized Shipment Splitting

Starting from February 20, 2025, Amazon’s warehouse configuration service policy will undergo some changes. After these updates, the “Partial Shipment Split” option will remain for large items, but for standard-sized goods, the “Partial Shipment Split” option will be removed. Only two warehouse options will remain: Amazon Optimized Shipment Split and Minimum Shipment Split. This change will streamline the entire process.

01. What is Amazon Optimized Shipment Splitting, and How Does It Compare to Minimum Shipment Splitting?

Amazon Optimized Shipment Splitting means that if sellers pack at least 5 identical cartons or pallets and ship them to multiple Amazon U.S. fulfillment centers, there will be no warehouse configuration service fee.

On the other hand, Minimum Shipment Splitting refers to no specific carton or pallet packaging requirement. Sellers can ship their inventory to a single warehouse within their selected geographic region (West, Central, or East U.S.) and will incur the corresponding warehouse configuration service fee.

To qualify for the Amazon Optimized Shipment option and avoid service fees, sellers must meet the following criteria:

1. Each product (SKU) must include at least 5 identical cartons or pallets.
2. Every carton or pallet must contain the same combination of items, with an identical quantity of each item.

02 Step-by-Step Guide: How to Access and Use Amazon’s Optimized Shipment Splitting

To qualify for Amazon's optimized warehouse options, sellers must ensure that each shipment includes at least 5 identical cartons or pallets. Furthermore, each carton or pallet must contain the same combination of items with identical quantities for each product.

Amazon even provides helpful prompts when sellers create shipments. In the first step of creating a shipment, sellers can follow the prompts to add the correct items and quantities:

In the second step, if your shipment doesn’t meet the criteria for Amazon Optimized Shipment Splitting, the page will offer suggestions on how to adjust your shipment to meet the requirements.

03 How to Maximize Your Available Warehouse Options?

It’s quite simple: when creating shipments, adjust your actions based on the factors that influence the available warehouse options:

• Create separate shipments for standard-sized items, oversized items, and each category (e.g., clothing, jewelry, shoes, watches, and hazardous materials).
• Ensure that all cartons contain the same product combination and quantity.
• Increase the number of cartons in your shipment.

2. Amazon FBA Warehouse Configuration Service Fee Schedule

Starting January 15, 2025, Amazon will lower the warehouse configuration service fee for large items. The average fee per item will drop by $0.58 for single point shipments.

The Amazon FBA warehouse configuration service fee is calculated based on factors such as product size, weight, shipment split, and delivery location:

• Product Size: Whether the item is small standard-sized, large standard-sized, or oversized.
• Weight: The weight of small standard-sized items and the greater value between product weight or volumetric weight for large items.
• Split Type: Single-point shipment, partial shipment split, or Amazon optimized shipment splitting.
• Destination Location: Fees vary depending on the fulfillment center’s location. For instance, fees may be higher for shipments sent to fulfillment centers on the U.S. West Coast.

01 How to Estimate Amazon FBA Warehouse Configuration Service Fees

Since November 26, 2024, Amazon’s FBA Fee Calculator will include the updated warehouse configuration service fees for 2025. Sellers can estimate the fee for individual or bulk SKUs by selecting various Amazon warehouse configuration options.

When creating shipments, sellers can see available configuration options and the estimated service fees in Step 2.

02 How to View Amazon FBA Warehouse Configuration Service Fees

After receiving the shipment (within 45 days), Amazon will charge sellers based on the actual delivery locations and quantities. Sellers can track these fees in two ways:

• Go to Payment Control Panel > Transactions Overview > Transaction Type (Service Fees) and click “Update” to see the fees for each shipment.
• Download the report, which will show warehouse configuration fees for shipment plans, helping sellers verify if their shipments meet the requirements.

3. Easy and Efficient Tools for Shipment Configuration

When creating shipment plans, sellers can use Amazon’s tools to optimize their shipments. For example, by comparing global Amazon FBA warehouse configuration options, related shipping costs, and different service fees, sellers can find the best configurations. The Amazon Warehouse Distribution Network (AWD) also helps achieve optimal inventory placement within the FBA network.

01 Use Amazon Global Logistics Configuration Options

The Amazon Merge and Ship Program (AMP) was launched by Amazon Global Logistics (AGL) in March 2024, helping U.S. sellers seamlessly connect to the FBA network and enhance their cross-border supply chain management. Sellers can use AMP to consolidate shipments of the same type of products and deliver them to a single location.

02 Use Amazon’s AWD for Distribution Network

Sellers can send shipments to AWD and choose to have inventory automatically restocked to FBA. Amazon will handle the restocking based on sales forecasts, helping you:

• Achieve warehouse consolidation and avoid shipping errors.
• No additional configuration fees.
• Avoid low stock levels and fees associated with low inventory or seasonal surcharges.
• Save up to 80% on bulk storage fees.

Forest Shipping Reminder: Amazon’s Partial Shipment Split option will be officially removed in less than a month! Get ready to optimize your shipments and avoid unnecessary fees!