Secretly increase the price by 30%~40%! Sellers complain that Amazon secretly adjusts the warehouse configuration fee!

Secretly increase the price by 30%~40%! Sellers complain that Amazon secretly adjusts the warehouse configuration fee!

Normal, once there is data abnormality, such as sales are falling, conversion rate is abnormal, flow is 0, etc., we need to deal with it in time. Regarding data analysis, we will mainly analyze store traffic data, sales data and advertising data. Through these data, we can observe whether today's sales have increased or decreased. If there is a problem, we can accurately know which link has the problem and make reasonable adjustments.

It was obvious that he could have just robbed the money, and he actually did it!


Membership Day is over, but the impact of the Membership Day event on sellers is still ongoing. In addition to the decline in orders and an increase in returns due to negative reviews, Amazon also seems to have made new moves.


PART
01

The warehouse division is abnormal, and the storage configuration fee is suspected to have increased.


The warehousing configuration fee, which officially came into effect on March 1 this year, has caused widespread discussion among Amazon sellers on several occasions.


Surprisingly, the “shock” that the warehousing configuration fee brought to sellers did not disappear over time. Even during the hot Prime Day, many sellers found that the warehousing configuration fees had increased to varying degrees!


A seller accidentally discovered that for several shipments, when they chose to send them to the West Coast of the United States in three shipments, the warehousing configuration fees would actually change. The warehousing configuration fees for shipments to three different West Coast warehouses of the United States at different times were surprisingly different. After trying other products, they found that the final configuration fees had all increased!


This situation also resonates with many sellers:


  • "When there are several shipments that are going to be sent to the US West Coast in three batches, the warehousing configuration fee will change. The warehousing configuration fee will increase from US$170 to US$290 if the shipments are sent to three different US West Coast warehouses at different times. The difference is huge."

  • "The initial storage configuration fee was about 1.76 yuan per piece, but when members repeated the same operation in the future, the fee rose to 2.46 yuan per piece."

  • "Today, the configuration fee for creating a shipment and shipping it has increased from $0.33 to $0.48. A month ago, the same three warehouses had a storage fee of $0.3. After testing four stores, all of them have increased to $0.48. Before that, no matter what warehouse it was, the three warehouses in the West Coast were all $0.33."


A seller tested and found that the delivery fee for a shipment on July 6 was $253. The configuration fee for re-setting the warehouse with the same packaging method and shipment volume increased to $360. The former was shipped using LAS1, LGB8, GYR3, while the latter was shipped using LGB8, ONT8, SBD1.


According to feedback from multiple parties, the most common situation is that the warehousing configuration fee has increased by about 30% to 40% . Some sellers revealed that since July, they have found that the warehouse consolidation fee for three warehouses in the western United States is much more expensive than in March:


  • 1000-1500 pieces shipped in March: divided into 3 warehouses in the western United States, calculated at 0.30-0.33 USD/piece

  • 1000-1500 pieces shipped in July: 3 warehouses in the western US, calculated at 0.42-0.46 USD/piece


This situation has never happened before, so is it that Amazon has secretly raised the relocation fee? Or are the relocation fees different for different warehouses in the western United States?


According to the feedback from sellers, we finally learned that this situation mainly occurred in the branch warehouses in the West Coast of the United States . The product size and number of branch warehouses of most sellers did not change, but the configuration fee for members did increase in the future and was already the same standard as the two warehouses in the West Coast of the United States.



Some sellers speculate that the change in warehousing configuration fees may be due to differences in the geographical location and operating costs of different warehouses, and Amazon's dynamic pricing strategy. It is reported that Amazon does not have an accurate standard for configuration fees, but only provides a fee range. Most of the time, when the number of warehouses is the same, the configuration fee is in the West Coast > the Central Coast > the East Coast, but this is not absolute.


So far, Amazon has not issued a specific price increase announcement, but has only secretly increased the fees.


If subsequent sellers want to save this secretly increasing configuration fee, they can only quickly check the goods to be shipped and optimize the warehouse distribution strategy, compare warehouses with lower configuration fees to see which area is more favorable, or plan the delivery time to temporarily avoid overcrowded warehouses to prevent having no goods to sell during the peak season.


PART
02

Previous sellers share their experience in warehouse division


At present, in response to this problem, sellers can only quickly check the goods to be shipped. When choosing the FBA warehouse distribution strategy, sellers need to comprehensively consider factors such as product characteristics, transportation requirements, and freight costs. Different products may require different warehouse distribution strategies to achieve the best logistics effect and cost-effectiveness.


1. How to decide whether to split warehouses? It depends on different situations:


  • First, make a reasonable calculation based on the size and weight of the products . Some products are light and numerous , so it will be a loss to ship them via the West Coast because the configuration fee is charged according to quantity . On the contrary, if the products are heavy but few, it will be more cost-effective to ship them via the West Coast.

  • Second, see if the seller is in a hurry to ship the goods. If not, it’s okay to ship slowly via the East Coast of the United States.


2. Sellers’ experience and insights on warehouse splitting strategy (in terms of freight costs):


1. If you do not pay the configuration fee, the FBA system will usually allocate the goods to warehouses in the eastern and central regions of the United States. This allocation method may lead to an increase in the first-leg freight, because the cost of shipping from these two regions to the whole country is relatively high. However, through careful analysis of product characteristics and transportation requirements, some sellers have found that in some cases, it is more cost-effective to choose to split the warehouse and pay the configuration fee.


2. When the seller chooses to distribute the goods to three warehouses in the western United States and pays the corresponding configuration fee. Advantages: ① The transportation cost between the western United States and major markets is relatively low. ② By truck delivery (card delivery), transportation costs can be further reduced and logistics efficiency can be improved. After calculation, this warehouse distribution strategy is more cost-effective in terms of freight costs.


3. Practical shipping tips from some sellers


1. For mixed boxes, basically only one warehouse will be allocated, and the only warehousing configuration method that can be selected is "minimum cargo splitting".

2. Increase the proportion of SKUs packed separately. Then you may be assigned to "Amazon optimized shipment split".

3. For small and light products that need to be stored in more than 4 locations: a. The number of sku should be more than 2 b. The number of boxes should be more than 5 c. There should be at least 5 boxes with the same number of sku. If there is a sixth box, the sixth box can be packed at will


4. Optimal solution for storage configuration fees of different products

The following are suggestions for different products to be stored in warehouses after sellers calculate various fees, for your reference:


1. It is more cost-effective to store small and light products in 4 or more storage locations. If this is not possible, 2-3 storage locations will also be acceptable. The increased first-mile costs can be compensated by the reduced FBA delivery fees.

2. Products weighing between 12 ounces and 1.5 pounds may be considered to have no warehouse or to have 4 warehouse locations;

3. For products weighing 1.5-3 pounds, consider not having any warehouse or dividing them into 4 warehouse locations;

4. You can consider using overseas warehouses, calculate the increased cost, compare it with the increased cost of warehousing configuration fees, and choose the best one.


In general, Amazon's warehouse distribution strategy still needs to be carefully studied. For sellers, how to choose a warehouse distribution strategy should be based on product characteristics and freight costs. Sellers need to carefully analyze their product characteristics and transportation needs, and flexibly adjust the delivery plan through calculations to achieve the best logistics effect and cost-effectiveness. This is the right way.

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