Sellers who do cross-border e-commerce know that Amazon is a platform that pays great attention to the buyer experience. In order to improve the shopping experience of buyers, many Amazon sellers will choose FBA delivery.
Whether it is off-season or peak season, logistics and warehousing costs are always the main expenses of sellers. In fact, the warehouse consolidation fee in the FBA fee is hidden very deeply in the Amazon report, and it is easy for sellers to ignore it. If the seller does not calculate this fee, it may waste money for a long time.
1. What are warehouse consolidation and warehouse distribution?
Warehousing means that FBA products are concentrated in the same Amazon FBA warehouse, and warehouse distribution means that Amazon divides the same batch of goods and the same batch of goods SKU products created by the seller into 1~3 FBA warehouses.
When creating an FBA delivery order in the background, there are two options for the inventory configuration option Inventory Placement option: inventory placement services (combined warehouse) and distributed inventory place (distributed warehouse). Amazon’s FBA is set to distributed warehouse by default.
2. Why does Amazon default to distributed warehouses?
1) Improve warehouse utilization
The reason why Amazon divides the seller’s products into warehouses is to improve the reasonable utilization rate of warehouses and prevent warehouses from being overwhelmed or vacant.
Amazon conducts a comprehensive analysis based on the facility conditions, temperature, humidity and other factors of each FBA warehouse, combined with the seller’s product type, and then divides each type of product into the most suitable FBA warehouse.
2) Save FBA delivery fees
In order to save its own costs, Amazon can save buyers’ inventory FBA delivery fees when purchasing products after allocating the seller’s inventory to multiple Amazon operation centers.
For sellers, increased costs and reduced profits will directly affect the healthy development of sellers in the long run. If you don’t know the invisible huge amount of money generated by the warehouse consolidation fee or warehouse consolidation fee, you will become a big victim when creating a shipping plan!
Amazon’s warehouse consolidation and warehouse consolidation fees are fees that sellers often ignore. When sellers want to consolidate or divide warehouses, they can calculate the warehouse consolidation/warehouse consolidation fees to see if the cost of operating the product is within their acceptable range before making a decision! LianLian International always pays attention to every little thing of the sellers, and will bring articles on related aspects in future articles to help sellers operate better.