Amazon removes partial shipment splits for standard-size FBA products

According to the official Amazon announcement, the e-commerce company is implementing significant changes to its Fulfillment by Amazon (FBA) inbound placement service options, with the partial shipment splits feature being discontinued for standard-size products starting February 20, 2025.

The modification, announced 11 months ahead of implementation, leaves sellers with two primary options for inventory placement. According to the documentation, sellers can choose between Amazon-Optimized Shipment Splits, which allows sending inventory to multiple fulfillment centers without an inbound placement fee, or Minimal Shipment Splits, which enables shipping to a single location with an associated fee.

For large standard-size products weighing between 3 and 20 pounds, the minimal shipment splits fee ranges from $0.37 to $0.68 per unit. According to the fee structure documentation, the company is reducing inbound placement service fees for large bulky-size products by an average of $0.58 per unit for minimal shipment splits.

The partial shipment splits option will remain available for large bulky-size products after the February deadline. For these items weighing between 28 and 42 pounds, sellers face fees ranging from $1.05 to $2.83 when opting for partial shipment splits to two or three locations.

According to Jon Elder, who reports working with over 500 brands selling on Amazon, more than half are no longer in business. The impact on smaller sellers appears particularly significant, as the partial shipment splits option previously provided a cost-effective middle ground for inventory distribution.

The fee structure varies based on multiple factors, including product size, weight, number of shipment splits, and inbound location. According to the documentation, higher fees may apply for shipments sent to inbound locations in the Western United States compared to other regions.

For sellers utilizing the Amazon-Optimized Shipment Splits option, specific requirements must be met. According to the technical specifications, shipments must include at least five identical cartons or pallets per item, with each containing the same quantity per item and identical item mix.

The company has implemented additional changes to the fee structure. According to the announcement, Amazon will waive the inbound placement service fee for new parent ASINs qualifying for the FBA New Selection program between December 1, 2024, and March 31, 2025, covering up to the first 100 inbounded units per new parent ASIN.

The changes extend to sellers using Amazon Global Logistics. According to the documentation, these sellers can access Amazon Managed Placement service for both large bulky and standard-size products, allowing inventory inbound at one location for subsequent distribution across multiple fulfillment centers.

For monitoring purposes, sellers can track their charges through the Payments dashboard or the FBA inbound placement service fee downloadable report. The report provides detailed fee information at shipping plan, shipment, and SKU levels.

The modification aligns with broader changes in Amazon's fulfillment network. According to Kevin King, a significant focus remains on maintaining profit margins between 20-25% for sustainable operations in 2025.

The Revenue Calculator, effective November 26, 2024, will incorporate the updated 2025 inbound placement service fees. According to the documentation, sellers can estimate per-unit rates for both single SKUs and bulk shipments across different FBA inbound placement service fee options.

For sellers using Amazon APIs, the Fulfillment Inbound API v0 will be discontinued on December 20, 2024. According to the technical documentation, users must migrate to the Fulfillment Inbound v2024-03-20 API for continued programmatic access to Fulfillment Inbound services.