WIKI: How to Have Amazon Inventory Shipped to One Location


#1

Amazon’s ultimate goal is to serve their customers as best they can, which includes good product availability. Once of the ways they do this is by having Merchant inventory stored at fulfillment centers around the country.

Unfortunately, Amazon shifts the burden of distributing this inventory to Merchants and may require you to have your FBA inventory for a product shipped to multiple locations. However, but you do have the options to avoid this (for a fee) by using their Inventory Placement Service.

What Is the Inventory Placement Service?

First, let’s look at how Amazon describes your options:

Distributed Inventory Placement (default setting) - Amazon will determine the distribution of your inventory among one or more fulfillment centers during the shipment creation process. This may include multiple shipments for individual Merchant SKUs.

Inventory Placement Service - All quantities of a single Merchant SKU will be assigned to a single fulfillment center determined by Amazon during the shipment creation process. A per-unit service fee applies.

(source: http://www.amazon.com/gp/help/customer/display.html?nodeId=201233560)

Keep in mind that this will allocate your inventory to a single warehouse, but you do not get to choose WHICH warehouse that is. So, if you’re located in New York, it’s still possible that Amazon will require all your inventory be shipped to Phoenix.

There are limited exceptions to the Inventory Placement Service. Products in the following categories may be shipped to different fulfillment centers even if you have enabled the service:

  • Apparel
  • Jewelry
  • Shoes
  • Media
  • Oversize products
  • Products with special prep or handling requirements

Inventory Placement Service Fees

The minimum fee is $0.30 and applies to Standard size units weighing one pound or less. Fees increase for oversized units or units weighing more than one pound. For a complete description of fees, it’s best to refer to the Amazon help page on the subject: http://www.amazon.com/gp/help/customer/display.html?nodeId=201233560

How To Enable the Inventory Placement Service

This is an account level setting, so you can’t change it during the shipment creation process. To enable the service, follow these steps:

  • Go to Fulfillment by Amazon Settings.
  • Under Inventory Placement Option, click the “Edit” button.
  • Select your preferred option.
  • Click the “Update” button.

Even though it’s an account level option, you can change this as often as you’d like. So, you could decide to enable the service, create a shipment, then go back and disable it immediately afterwards.

The placement option is set as soon as you’ve started the shipment creation process, so if you wanted to use the service but forgot to enable it, you’d have to delete the shipment and start over again.

This post is part of the Ultimate Wiki Project


The Ultimate Wiki Project: Selling on Amazon FAQ
#2

Dax

Is it a good idea to do this then if you can?
Shelley


#3

It’s mostly a cost decision, but the capability of your supplier is also a factor.

If communicating with your supplier is tough, you may want to consider paying the fee even if it’s a little more expensive just to keep things simple for them…at least for the first order. However, if you have a confidence that your supplier can handle the multiple shipments easily, then it’s just a cost issue.


#4

Ok good to know Thanks


#5

Hi everone

My inventory is Standard-Size but Amzon forced me to record as Oversize inventory. Inventory levels storage limits Monitor only displays my current inventory limits for products quantity 500 units. I tried to edit in order to any get solution for this limitation and contacted serval times to central support ans so far No solution.Now the worry is my next big order quantity!

If any can help me for guidance and advice for this Inventory Storage Monitor Oversize displayed in my account will be appreciated!

Thanks in advance


#6

Usually if your product is incorrectly listed as Oversized, Amazon will fix it if you contact support.

Are you sure it’s not Oversized? Can you tell me the actual dimensions of your product in its packaging?


#7

Updating my Standard-Size Inventory That Amazon Listed Incorrectly:
Dax, as you suggested, I was continuously sending and contacting the Central Support till the problem that Amazon incorrectly listed my Standard-Size inventory as Oversize inventory is solved and fixed.

Cost-effective resulted from this problem financially in relation for 4-months sales- profit.
1.During that period Amazon was charging on all my sales whether is $1 promotion or standard selling price about $8 per sale as Oversize inventory which is double what they are charging me now $4.91 as Standard-Size inventory after RETRO ACTION.
2. Limits Monitor, my inventory limits for products quantity was 500 units only which means I couldn’t import/ship to fulfillment more than that limited quantity but now the units is increased.

Good News!
Based on Case Study by fulfillment center that the packaged dimensions for my ASIN assessment of my product item falls under the standard-size. Amazon fulfillment center categorized by mistake as Oversize category and ever-since we paying FBA Fees overcharges on Sold items of units.Amazon made Retroactive Refunds Adjustment of FBA Fees overcharged amounts since beginning of first sales in accordance with their policies.

So, they adjusted and refunded an amount nearly $1000 and below is sample of Amazon Email about reimbursed portion:

“Upon further research I have initiated an automated reimbursement of $293.46 under the reimbursement ID 270033831 as per Amazon policy since the orders associated with the ASIN XXXXXXX were incorrectly charged. Note that reimbursement issued will be credited to your seller account within 3-5 business days.”

Advice in here is anyone encounter or fall under such cases of Amazon Inventory Sizes mess or what they termed as inventory levels storage limits Monitor Policy. Seller should keep pushing until gets a fair packaged dimensions for ASIN assessment by fulfillment center.

Thank Dax and I really appreciated for guidance!!


#8

@instant1, that’s great news!


#9

For my first product of single shipment and single UPC, Amazon distributed my FBA inventory to three different warehouse locations or fulfillment centers and assigned to different MSKU as units of each MSKU to better services enable product availability at the customer’s preferable shipping speed per Amazon Distribution Procedures.

Now, it’s nice to hear that Amazon has introduced an options as you said to avoid this for a fee charges by using their Inventory Placement Service to " assigned to a single fulfillment center determined by Amazon during the shipment creation process. A per-unit service fee applies"

Now Little Clarification, I found a confusing of how to Edit or Send single Merchant SKUs to a single fulfillment center in the Fulfillment by Amazon Settings?

I assumed like this " Inbound Setting > Inventory Placement Option > Inventory Placement Service > Update.

Then what’s next step because the page took me No where, is that whole enough operation? Thanks