For a long time, Amazon’s Fulfillment by Amazon (FBA) service has been divided into warehouses according to product characteristics. Different products will be automatically assigned to Amazon’s warehouses in different locations. For example, when you send 200 items to an FBA warehouse, about 100 of them may be assigned to a warehouse in California, and the rest may be sent to other warehouses. Especially for sellers who are entering the platform for the first time and do not have a large amount of inventory, this warehouse division model may cause considerable inconvenience. However, Amazon also provides a solution for such a situation, that is, to choose to use the warehouse consolidation service.
Amazon FBA warehouse consolidation is a strategy to centrally place all FBA inventory in one warehouse. This centralized storage model helps to manage inventory more efficiently and facilitates timely replenishment. Especially for sellers, this service can bring them many advantages.
1. Setting up Amazon FBA warehouse consolidation service.
1. Log in to Seller Central and select the Settings drop-down menu Fulfillment by Amazon.
In the first step, sellers need to log in to their Seller Central account and find the Fulfillment by Amazon option in the Settings drop-down menu.
2. Select Inbound Settings and click Edit.
In the second step, sellers need to click Inbound Settings and then select Edit for subsequent settings.
3. Select Inventory Placement Service.
In the third step, sellers need to select Inventory Placement Service, which is a key step to enable the co-warehousing service.
Second, Amazon FBA co-warehousing fees.
When considering whether to choose Amazon FBA co-warehousing, it is also crucial to understand the fee structure. Here is some information about co-warehousing fees:
Standard size: 1 pound or lighter: $0.30.
Standard size: 1 pound to 2 pounds: $0.40.
Standard size: over 2 pounds: $0.40 + $0.10/pound for each part exceeding the first 2 pounds.
Oversize: 5 pounds or less: $1.30.
Oversize: Over 5 pounds: $1.30 + $0.20/pound for each additional 5 pounds.
These fee structures vary depending on the size and weight of the product, and sellers should consider these factors when making decisions.
3. Choice between consolidation and split warehousing.
Sellers should make their own judgment based on their sales situation when choosing whether to use the consolidation service or continue with split warehousing. For small and medium-sized sellers who are just starting out, especially when sales volume is not large, it is wise to choose consolidation even if some fees are required. This strategy helps reduce inventory backlogs while saving shipping costs.
For those items with stable sales on the platform, split warehousing may be more suitable. Split warehousing allows Amazon to deliver products more conveniently, thereby improving the shopping experience, which may in turn increase customer repurchase rates.
On the whole, Amazon FBA consolidation service provides sellers with more options in inventory management and logistics efficiency. According to the seller’s situation and product characteristics, choosing the right warehousing strategy can better meet their business needs. Whether choosing a centralized warehouse model or a warehouse based on sales locations, it is necessary to make comprehensive considerations in terms of costs, inventory management, and shopping experience to achieve better business results.