Amazon FBA warehouse division and closing strategies and cost considerations

FBA (Fulfillment by Amazon) is a logistics service provided by Amazon. It allows sellers to store products in Amazon warehouses, and Amazon is responsible for packaging, distribution and after-sales services. However, when using this service, sellers often encounter products being divided into warehouses. This article will combine content from multiple sources to discuss the relevant knowledge of FBA warehouse division and closing, and provide sellers with countermeasures.

Definition of FBA warehouse opening and closing

FBA products are concentrated in the same FBA warehouse. This situation is called FBA closing. On the contrary, Amazon divides a shipment or products of the same SKU created by the seller into 1 to 3 FBA warehouses, which is called FBA warehouse.

The reason why Amazon defaults to FBA warehouse distribution

When sellers create an FBA shipping plan in the backend, Amazon usually distributes products under the same order to different warehouses. There are multiple considerations behind this approach: On the one hand, Amazon allocates products to the most suitable warehouse based on the facility conditions, temperature, humidity and other factors of each FBA warehouse, combined with product type, to improve warehouse utilization; on the other hand, Amazon On the other hand, in order to save delivery costs and improve user experience, Amazon will also place products in areas with high demand based on the location of buyers.

Key points to avoid splitting positions

In order to reduce the inconvenience caused by warehouse division, sellers can start from the following aspects:

• Properly plan delivery time and quantity: Develop accurate delivery plans based on historical sales data and demand forecasts.
• Use Amazon Fulfillment Service: Using FBA helps to centralize inventory and reduce the possibility of being divided into warehouses.
• Control inventory locations and replenishment strategies: Regularly assess inventory levels and develop replenishment strategies based on sales trends.
• Optimize transportation and warehousing options: Work with transportation and warehousing service providers to find the right transportation and warehousing options.

Cost considerations for FBA warehouse division and closing

For sellers who choose to close their warehouses, they need to understand Amazon’s warehouse closing fees. Standard size items are charged based on weight, and oversized items also have corresponding charges. Sellers need to calculate costs based on the characteristics of their own products. If the volume of goods is large and can reach a certain starting point, it may be more economical to separate warehouses.

How to deal with FBA warehouse splitting

In view of the situation of European FBA being divided into warehouses, sellers can solve the problem by adjusting inventory allocation, using alternative warehouses, and formulating inventory replenishment plans. In addition, you can also use Amazon’s Inventory Placement Service, or consider distance factors when choosing a shipping location, and try to combine shipping and other strategies.

The meaning and settings of FBA sub-warehouses

Properly setting up FBA warehouses can shorten delivery time and reduce transportation costs. When setting up, factors such as the geographical location of the target market, product demand, and warehouse capacity should be considered. Amazon also provides a variety of tools and services to help sellers manage warehouses, such as Inventory Placement Service, cross-border inventory planning tools, etc.

Do new sellers need to divide their warehouses

For new sellers, decide whether to adopt a split warehouse strategy based on business volume and scope. When the business volume is small and the types are small, it is more appropriate to choose the FBA warehouse model; when the business scope is wide, you can consider dividing the warehouse to better meet the needs of different regions. In addition, choosing the appropriate warehousing model and warehouse location, as well as rationally managing inventory and controlling costs are also important considerations.

In short, through the above strategies, sellers can not only effectively deal with FBA warehousing problems, but also further optimize operations, improve customer satisfaction, and ultimately promote business growth.