How Splits Can Save Money for Amazon Sellers Using a Warehouse in the Midwest

When it comes to selling on Amazon, one of the hidden opportunities to save significant money lies in optimizing how you ship your products to Amazon’s Fulfillment Centers. One strategy many successful sellers employ is splitting their shipments, especially when using a fulfillment warehouse in the Midwest. But how exactly can splits save money, and why is the Midwest an ideal location? Let’s break it down.

What Are Shipment Splits?

Amazon often requires sellers to send their inventory to multiple Fulfillment Centers across the country. This can sometimes seem like a hassle, but it can actually save money in the long run. Shipment splits refer to breaking up a bulk order into smaller batches that are sent to different Amazon Fulfillment Centers based on their locations. This is in contrast to sending all products to one location and letting Amazon distribute them, which can lead to hefty redistribution fees.

How Do Splits Save Money?

Here’s how splitting your shipments can result in savings:

1. Lower Amazon Redistribution Fees
   When sellers send products to a single fulfillment center, Amazon charges a redistribution fee to transfer the inventory across the country. These fees can quickly add up, especially for large shipments. By using splits, sellers avoid these extra costs.
2. Reduced Shipping Costs
   By splitting shipments and sending them directly to regional fulfillment centers, you can take advantage of shorter shipping distances, lowering the overall cost of shipping. Since warehouses in the Midwest are geographically central, splitting shipments from this location can further reduce costs by sending products more efficiently to both coasts.
3. Faster Delivery Times
   Splitting shipments ensures that your products are spread across multiple fulfillment centers closer to your customers. This leads to faster delivery times, which not only improves customer satisfaction but can also positively impact your seller metrics.
4. Optimized Inventory Distribution
   Amazon’s algorithm determines the best locations for your products to be stored based on demand. By utilizing splits, your inventory is distributed more effectively, reducing the likelihood of stockouts in key locations and maximizing sales opportunities.

Why the Midwest Is Ideal for Splits

The Midwest, often referred to as the heart of the United States, is strategically located to serve all regions of the country. Using a Midwest-based fulfillment warehouse offers a central point to ship products efficiently to Amazon Fulfillment Centers on both the East and West Coasts. Here’s why this location makes such a big difference:

1. Geographical Advantage
   The Midwest is equidistant from major hubs on the coasts, reducing shipping distances and times. This makes it a cost-effective and practical solution for sellers who need to distribute their products nationwide.
2. Fewer Logistics Bottlenecks
   Unlike coastal warehouses, Midwest facilities often face fewer delays in terms of traffic and port congestion, allowing for quicker processing times and more reliable shipments.
3. Access to Key Fulfillment Centers
   Amazon has a strong network of fulfillment centers located in or near the Midwest. By splitting shipments from this region, sellers can ensure that products reach high-demand areas without paying hefty redistribution fees.

Real Savings in Action

Let’s consider a real-world example. Suppose an Amazon seller using a Midwest fulfillment center wants to send 1,000 units of their product to Amazon. Instead of shipping all 1,000 units to one fulfillment center, they split the shipment into five parts, sending 200 units to five different centers across the U.S.

• Single Shipment Costs: Shipping 1,000 units to one fulfillment center might cost $4,000, plus redistribution fees that add another $1,500.
• Splitting Shipment Costs: Shipping 200 units to each of the five centers may only cost $1,200 per split, totaling $6,000 with no redistribution fees.

In this example, the seller saves $500 by avoiding redistribution fees, and their inventory is better positioned across the country for faster delivery times.

Conclusion: Splitting Saves

For Amazon sellers looking to maximize their profits, splitting shipments is a highly effective strategy. By avoiding costly redistribution fees and optimizing shipping routes, sellers can save a significant amount of money—especially when using a centrally located warehouse in the Midwest.

If you’re interested in learning more about how our Midwest warehouse can help you save money and streamline your Amazon operations, feel free to reach out to LuckyPrep. We specialize in fulfillment and shipment splits, ensuring your products reach Amazon’s Fulfillment Centers efficiently and cost-effectively.