A Deep Dive into Amazon Inventory Placement Service

Jeniffer Alexander
SellerApp
Published in
2 min readSep 21, 2023

Are you an Amazon seller looking to optimize your e-commerce strategy?

Amazon Inventory Placement Service might be the game-changer you’ve been searching for.

In this post, we’ll explore what it is, whether it’s free, how to use it effectively, and help you decide if it’s the right fit for your business.

What is Amazon Inventory Placement Service?

Amazon Inventory Placement Service is a feature offered to sellers in the Fulfillment by Amazon (FBA) program.

It allows you to dictate how your inventory is distributed within Amazon’s vast fulfilment network.

Instead of your products being scattered across multiple warehouses, you can choose to have them concentrated in a single fulfilment centre.

This strategic choice can lead to more streamlined operations and potentially reduced shipping costs.

Is Amazon Inventory Placement Service free?

No, it’s not free.

Amazon charges a per-unit fee for using this service, and the cost varies depending on the type and size of your products.

While it may seem like an additional expense, it’s crucial to evaluate the potential cost savings on shipping and overall operational efficiency that this service can provide.

Is Amazon Inventory Placement right for you?

The suitability of Inventory Placement Service depends on your specific business needs and goals. Here are some factors to consider:

  1. Cost Savings: If you’re looking to minimize shipping costs, especially for larger or heavier products, this service can be a cost-effective option.
  2. Centralized Management: If you prefer centralized inventory management, which can simplify tracking and restocking, this service can provide it.

However, it may not be ideal if you have small, fast-moving items that benefit from Amazon’s default distribution. Consider your product types, customer locations, and costs when making your decision.

Pros and cons of Amazon Inventory Placement Service

Here are the pros and cons of Amazon Inventory Placement Service

Pros of Amazon Inventory Placement Service

  • Ideal for Smaller Shipments
  • Single Shipping Distribution
  • Distribution Control

Cons of Amazon Inventory Placement Service

  • Higher Expenses
  • Not Suitable for All Products
  • Extended Delivery Times

In conclusion, Amazon Inventory Placement Service can be a valuable tool to optimize your FBA strategy. Evaluate your products, costs, and operational goals to determine whether they align with your business objectives. As you weigh the pros and cons, remember that efficiency and customer satisfaction are essential in the competitive world of e-commerce.

Want to take a closer look at Amazon Inventory Placement Service?

Read the complete blog, and find out how Amazon Inventory Placement is changing the way you manage your Amazon selling experience.

Read the full article [here]

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Jeniffer Alexander
SellerApp

Content writer at SellerApp. She writes about eCommerce and Amazon for sellers to help them sell their products.