Amazon has issued new rules again, sellers: It’s too difficult!

Amazon has issued new rules again, sellers: It’s too difficult!




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Recently, Amazon issued a new notice! Relevant sellers need to take countermeasures before the specified date, otherwise it will affect store sales! Sellers said it was too difficult!

01



Amazon warehouse placement fee update

Amazon's warehouse configuration fee policy will officially take effect on March 1, 2024. Recently, sellers have begun to receive notification emails from Amazon about the update of the warehouse configuration fee policy, marking a major adjustment of the platform's logistics cost structure.
The update shows that the fees for different product categories will be adjusted based on factors such as volume, weight and storage time.
To get Amazon's optimized shipping option without paying shipping fees, your shipment needs to meet the following two conditions:

・The shipment must contain at least 5 identical boxes or pallets of each product;
・Each box or pallet must contain the same quantity of units and the same product mix.
In simple terms, if a seller wants to waive the warehouse configuration fee, they must distribute the same SKU to five different warehouses. In addition, the combination and quantity of goods in each carton must also be consistent.
If the seller plans to send multiple SKUs at the same time, at least one of the SKUs should be guaranteed to meet the requirements of being distributed to five warehouses. If the above conditions are not met, the only option is to pay additional fees.
Amazon's official data shows that in the past year, due to fluctuations in the global supply chain and increased transportation costs, Amazon's logistics costs have risen by nearly 30%. Against this background, the introduction of the new policy is not only to ease Amazon's own operational pressure, but also to encourage sellers to manage inventory more efficiently and reduce unnecessary backlogs and waste.
According to what I have learned, the warehousing configuration fee has generally increased by 30%-40%, and sellers have reported that it is mainly in the western U.S. Although the product size and number of warehouses remain the same for most sellers, the configuration fee for members after the membership period has indeed increased.
It is worth mentioning that Amazon has no fixed standard for placement fees, but provides a fee range. Usually, the placement fee is ranked as West Coast > Central Coast > East Coast, but this is not absolute. Amazon has not yet issued an official price increase notice.


02



How to calculate the warehousing configuration service fee?

Amazon has added the ability to calculate inbound placement fee options in the Revenue Calculator. Sellers can use this tool to select from a range of FBA inbound placement service fee options and calculate an estimated per-unit rate for a single SKU or batch.

Additionally, sellers can choose the fulfillment center location (Western, Eastern, or Central) and the number of shipments to send.
1. Select Implementation from the Report drop-down menu.
2. Scroll down to Payment on the left side of the page and click FBA Inbound Configuration Service Fee
Sellers can refer to the following practical methods for accurate packing. When you are ready to ship 100 pieces of product A and 100 pieces of product B and want to avoid configuration fees, you can set up the packing list as follows:

・BOX1: A 20 pieces, B 20 pieces

・BOX2: A 20 pieces, B 20 pieces

・BOX3: A 20 pieces, B 20 pieces

・BOX4: A 20 pieces, B 20 pieces

・BOX5: A 20 pieces, B 20 pieces
That is, the types and quantities of goods in each box should remain exactly the same.
If you have multiple products or different quantities of products, you first need to estimate the approximate number of boxes you need. Assuming you need X boxes, you just need to divide the quantity of each product by X.

03



Self-delivery sellers must maintain at least 90% on-time delivery rate

Recently, Amazon issued a notice stating that from September 25, 2024, all fulfillment by manufacturer (FBM) sellers must maintain an on-time delivery rate (OTDR) of at least 90% without extending the original commitment period.
The OTDR calculation formula is:
Below this announcement, it can be clearly seen that the sellers are dissatisfied with this new policy. In the likes area, most sellers clicked "dislike", which is enough to show the attitude of most sellers towards this new policy.
Currently, many sellers still have an on-time delivery rate below 90%, and there is only one month left before the new regulations take effect.
It is worth noting that Amazon only counts orders from the past 21 days and excludes orders from the last 7 days, which means that for sellers who have not yet met the standards, there is less time left for them to make adjustments.
The editor learned that Amazon also provides some solutions for sellers with OTDR below 90%. Self-delivery sellers shipping from China can use the Shipping Setup Automation (SSA) tool and Buy Shipping to meet the order commitment time limit. Sellers shipping from the United States can use the three tools of SSA, Buy Shipping and Automatic Stocking Time (AHT) at the same time.
In addition, sellers must strengthen inventory management to ensure that goods are sufficient in stock and can be shipped in a timely manner, optimize the logistics and distribution process, and choose reliable logistics carriers as much as possible.
Final words
As Amazon's logistics services continue to evolve, the future direction will focus more on technological innovation and service optimization. The implementation of the new policy will undoubtedly prompt sellers to pay more attention to customer needs and optimize product supply, thereby maintaining their advantages in the highly competitive market.


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