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.

When it comes to shipping goods in bulk, businesses must decide between two main options for loading containers: floor loading or pallet loading. Both methods have their advantages and challenges, but understanding their differences is crucial for maximizing efficiency and cost savings in B2B freight operations. In this post, we’ll explore both approaches, their benefits, and which one may be the right fit for your business needs.

What is Floor Loading?

Floor loading is a method where goods are stacked directly onto the floor of a container without the use of pallets. This approach allows shippers to make the most of the container’s available space, as there are no pallets taking up room. Products are carefully arranged to maximize the use of every cubic inch.

Benefits of Floor Loading:

1. Maximized Space Utilization: By eliminating the use of pallets, floor loading allows for more goods to be shipped in a single container. This is particularly useful for companies shipping lightweight or compact products.
2. Reduced Shipping Costs: Since more products can be packed into each container, businesses can reduce the number of containers they need, leading to lower shipping costs overall.
3. Lower Packaging Costs: Floor loading eliminates the need for purchasing pallets, further reducing costs.

Challenges of Floor Loading:

1. Labor-Intensive: Loading and unloading products without pallets can be more time-consuming and require additional manual labor, increasing handling costs.
2. Risk of Damage: Since products are packed directly onto the floor and stacked, there’s a greater risk of damage during transit, especially for fragile goods.
3. Slower Unloading: Unloading a floor-loaded container can take longer, as each item must be removed by hand, which can delay delivery times.

What is Pallet Loading?

Pallet loading involves placing goods onto standard pallets, which are then loaded into the container. The goods are stacked securely on the pallets, making them easier to load, unload, and transport.

Benefits of Pallet Loading:

1. Faster Loading and Unloading: Palletized goods can be quickly moved with forklifts, speeding up both the loading and unloading processes. This can save valuable time, particularly when shipping large quantities.
2. Reduced Risk of Damage: Pallets provide stability and protection for goods, reducing the risk of damage during transport. This is especially important for fragile or high-value products.
3. Standardization: Pallet sizes are standardized, making them easier to manage in warehouses and during transit, as well as ensuring compatibility with global freight systems.

Challenges of Pallet Loading:

1. Reduced Space Efficiency: Pallets take up a significant amount of space in a container, which can reduce the number of products that can be shipped at once.
2. Higher Shipping Costs: Because pallet loading uses space less efficiently, businesses may need to ship more containers, increasing transportation costs.
3. Pallet Costs: Pallets add to the overall cost of shipping, especially if custom pallets are required for specialized products.

Which Method Should You Choose?

The choice between floor loading and pallet loading largely depends on your business needs and the nature of the products you’re shipping. Here’s a quick guide to help you decide:

• Choose Floor Loading If:
  • You’re shipping lightweight, compact, or high-volume products.
  • Reducing transportation costs is a top priority.
  • Your goods can withstand the potential risks of being stacked without pallets.
• Choose Pallet Loading If:
  • You need faster loading/unloading times.
  • Your products are fragile or high-value and require additional protection.
  • You’re shipping to destinations where standardization and speed are crucial for efficiency.

Conclusion:

Both floor loading and pallet loading have their place in B2B freight logistics, and the decision ultimately comes down to balancing cost efficiency with product protection and operational speed. If you’re looking for ways to optimize your shipping strategy, evaluating your product type, shipment volume, and budget can help you make the right choice.

If you have any questions about which method is best for your business or are looking for expert guidance in logistics management, feel free to reach out to us at LuckyPrep. We specialize in helping businesses like yours streamline their freight and fulfillment operations.

Both Amazon FBA and FBM have their own advantages and disadvantages. In this blog post, we’ll guide you on how to strategically list your items using both fulfillment methods to enjoy the best of both worlds. Let’s dive in!

Can I Do Both FBA and FBM?

Yes, you can. Amazon allows you to list the same item for both FBA and FBM. Many sellers focus primarily on FBA, which is a smart choice for Amazon private label sellers and resellers. However, combining FBA and FBM can offer additional benefits.

FBM (Fulfilled By Merchant) requires the seller to ship orders themselves, akin to selling on your own website. The seller sets shipping rates and processing times and is responsible for ensuring orders reach customers within the promised timeframe.

Benefits of Listing on Amazon FBM and FBA

Managing Stock-Outs: Stock-outs can be problematic for private label sellers. Eva uses sales velocity, category analysis, and seasonal trends to prevent stock-outs or delay their occurrence. It identifies the optimal time to replenish items and notifies private label sellers promptly. However, unforeseen logistical or manufacturing challenges may arise, such as customs issues or missing manufacturing ingredients.

In such cases, maintaining an FBM listing can be valuable. While sales velocity with FBM might not match that of FBA, it helps stabilize keyword and BSR rankings, minimizing negative impacts. It also ensures customers still have the option to purchase the item, promoting customer satisfaction.

Reaching Non-Prime Consumers: Although Amazon Prime is popular, there are still non-Prime customers who may not benefit from its services. Offering an FBM option provides these customers with a potentially cheaper alternative. This can expedite purchasing decisions and appeal to a wider audience.

Additionally, FBM allows sellers full visibility of buyer information, which is not available with Amazon FBA.

Know Your Customer: For private label sellers, understanding your customers is key to developing customer-centric strategies. Using FBA as the primary fulfillment method is recommended, but gathering insights from your customers through FBM can be valuable. It enables surveys, comprehension of customer intent, and the offering of new products.

Dear LuckyPrep customers

We are thrilled to share some exciting news with you! Following the success of our warehouse in Illinois, we are delighted to announce the opening of our second warehouse in Florida. This expansion marks a significant milestone for us and presents new opportunities to better serve you.

Our new warehouse, located at 110 Dunbar Ave Unit D, Oldsmar FL 34677, will enable us to enhance our services and provide you with even faster processing times, improved logistics, and increased efficiency.

One of the key benefits of our expansion to Florida is improved logistics. Florida’s strategic geographical location offers convenient access to major sea and air ports, streamlining the delivery process and reducing transit times. Additionally, Florida boasts a wealth of wholesale suppliers, opening up new possibilities for your business.

We sincerely appreciate your continued support and trust in LuckyPrep. Rest assured, we remain dedicated to delivering high-quality fulfillment services that contribute to the growth and success of your business.

We are excited about the opportunity to welcome you to our new warehouse and serve you from our Florida location!

Warm regards,

The LuckyPrep Team

Update: Credit for FBA low-inventory-level fees incurred during April 2024

 

Amazon’s “View in Your Room” is an Augmented Reality (AR) feature that allows customers to visualize products in their own space before making a purchase¹². This feature is available on the Amazon shopping app for iOS and desktop web browsers³.

Here’s how it works:
1. Open the Amazon app and tap on the camera icon in the search bar
2. Swipe up to see different modes and select the AR View option
3. You will see products in different categories. Select one to try it
4. Tap on the live camera view to place the item in your space. You can move the item around, resize, and rotate it to see how it will look and fit in real life

As a seller, you can leverage this feature to enhance the shopping experience for your customers. When customers use the AR features, they are offered suggestions of additional products based on the item they initially added. This can potentially lead to increased visibility and sales of your products. However, please note that this feature is only available for eligible products³. It’s also worth mentioning that the feature is free to use².

This innovative feature brings online products to life, providing customers with a more interactive and confident shopping experience. It’s a great way for sellers to showcase their products in a more engaging and realistic manner.

https://www.amazon.com/products

To do this u must Adding 360 model on your product

Adding 360-degree spin images to your Amazon product listings can greatly enhance the shopping experience for customers. Here’s how you can do it:

1. **Eligibility**: Currently, this feature is limited to Amazon Vendors¹. Amazon has chosen to limit who can use 360 Spin in order to maintain control over it¹.

2. **Image Quality**: Use clear and crisp high-quality images. Light the product to avoid dark spots and shadows³.

3. **360-Viewer App**: Use a 360-viewer app to turn your images into 360-degree images. The 360-degree image is a compilation of several still images (ranging from 24-96) in a three-dimensional seamless pattern offering a complete and wholesome viewing experience to the prospective buyer².

4. **Categories**: The 360-degree view is available for certain categories like Home and Kitchen, Furniture, Camera, Toys, Home Improvement, Appliances, Lighting and Fixtures, Pets, Baby, Automotive Products, Sports, and Outdoors.

Please note that while this feature can increase conversion rates and reduce product returns¹², it may come with a high price tag. However, the investment could be worthwhile considering the potential benefits. It’s always a good idea to keep up with Amazon’s latest features and guidelines to make the most of your selling experience.

 

 

Introduction: As an Amazon seller, staying informed about the latest changes and updates on the platform is essential for maintaining profitability and competitiveness. Recently, Amazon introduced a new fee structure known as the Inbound Placement Fee, which has sparked discussions and concerns among sellers. In this blog post, we’ll explore what the Inbound Placement Fee is, how it works, and what sellers can do to adapt to this change effectively.

Understanding Amazon’s Inbound Placement Fee: The Inbound Placement Fee is a new fee introduced by Amazon for sellers using the Fulfillment by Amazon (FBA) service. This fee is charged when sellers send inventory to Amazon’s fulfillment centers for storage and distribution. Unlike traditional storage fees, which are based on the volume and duration of storage, the Inbound Placement Fee is assessed based on the physical location within the fulfillment center where the inventory is stored.

How Does the Inbound Placement Fee Work? The Inbound Placement Fee is calculated based on the size and weight of the individual units being stored, as well as the specific location within the fulfillment center where the inventory is placed. Amazon assigns different rates for different storage locations, with rates typically varying based on factors such as accessibility, demand, and fulfillment center capacity.

Implications for Sellers: For sellers, the introduction of the Inbound Placement Fee represents a significant change in the cost structure of using FBA. While the fee is intended to optimize inventory placement and improve overall efficiency within Amazon’s fulfillment network, it also has financial implications for sellers, particularly those with large or bulky inventory.

Strategies for Managing the Inbound Placement Fee: Despite the challenges posed by the Inbound Placement Fee, there are several strategies that sellers can employ to mitigate its impact:

1. Optimize Inventory Planning: Analyze sales data and inventory trends to forecast demand accurately and avoid overstocking items that may incur higher placement fees.
2. Utilize Amazon’s Inventory Placement Service (IPS): Consider using Amazon’s IPS to specify where your inventory should be stored within the fulfillment center, potentially reducing placement fees.
3. Explore Alternative Fulfillment Options: Evaluate alternative fulfillment options, such as Seller Fulfilled Prime (SFP) or third-party logistics providers, to determine if they offer a more cost-effective solution for storing and shipping inventory.
4. Adjust Pricing Strategies: Factor the Inbound Placement Fee into your pricing strategy to ensure that your products remain competitive while still generating a profit.

Conclusion: While Amazon’s new Inbound Placement Fee presents challenges for sellers, it also offers opportunities for optimization and efficiency. By understanding how the fee works and implementing strategic measures to manage it effectively, sellers can adapt to this change and continue to thrive in the competitive world of e-commerce on Amazon.

As of March 1st, 2024, Amazon has introduced a new fee called the Inbound Placement Service Fee for sellers who use Fulfillment by Amazon (FBA). This fee impacts both standard-sized and large bulky products.

What is the Inbound Placement Service Fee?

Amazon is implementing this fee to cover the cost of strategically placing inventory within their fulfillment network. By storing products closer to customers, Amazon aims to achieve faster delivery times and potentially lower overall shipping costs.

Fee Details:

– Standard-sized products: Approximately **$0.27 per unit**¹.

– Large bulky products: Approximately **$1.58 per unit**¹.

Grace Period:

While the fees technically began on March 1st, Amazon won’t start collecting them until April 15th, 2024. Sellers have a 45-day window to adjust their FBA strategy accordingly.

Strategies to Minimize Impact:

1. Fulfillment by Merchant (FBM): Consider using FBA for only a portion of your inventory and fulfilling the rest yourself (FBM). This approach gives you more control over storage and potentially reduces fees.

2. Strategic Inventory Placement: Utilize Amazon’s tools to strategically choose which fulfillment centers to send your inventory to. This can help get your products closer to your target markets and potentially reduce inbound fees.

Remember that faster deliveries can lead to higher customer satisfaction and potentially more sales. Understanding the fees and adjusting your FBA strategy accordingly is key to navigating this change in Amazon’s fee structure. Stay informed and adapt to the evolving e-commerce landscape! 📦🌐

The first thing you should do, if you have not already, is head to your Fulfilled by Amazon settings and make your choice for your preferred method.

Go to Settings > Fulfillment by Amazon

On this page, hit Edit on the Inbound Settings block

Select the best option for your business

Tips to Minimize the New 2024 FBA Inbound Placement Service Fee

Tip #1: Break your shipments out by standard and oversize items before you create a shipment in Amazon or other third party softwares like Inventory Lab.

Amazon has said that if you create a shipping plan with a combination of standard-size items, non-standard-size items (for example, large bulky), or special handling categories like Hazmat or Dangerous goods, they will direct your inventory to more than one inbound location, even if you select the Minimal Shipment Splits Option for inbound placement. Which will mean the Minimal shipment splits rate will still apply to each shipment in the shipping plan, even if directed to more than one location.

To get around this, do not include large items, dangerous goods, shoes or clothing in a standard sized shipment. Create separate shipments for those items.

Tip #2 Pay more attention while sourcing to your item’s size and the potential fee.

In the Amazon seller app, you can click to add the fee while you are sourcing to see if the item makes money, should you have to pay the fee. To do this navigate to the profit screen in your Amazon seller app. Click on the “Fulfillment Fees” bar. Toggle on “Inventory Placement” and hit save updates. Unfortunately, there is currently no way to save this so it scans for every item and it is a manual process.

Tip #3: Avoid sending to the West Coast if you can help it.

With the new 2024 FBA inbound placement service fee, Amazon has said that shipments sent to the western area of the United States will see higher fees. To avoid this, opt for the Amazon-optimized shipment splits or if you are going to choose either partial shipment splits or minimal shipment splits, select a location other than “West”.

Tip #4: FBM more of your stock

With FBM there are no additional fees making it a great alternative to listing a few oversized or bulky items or items considered hazmat. Clothing and shoes are also super simple to FBM and you have more control over the returns and customer damages.

Amazon’s FBA New Selection Program: Empowering Sellers and Streamlining Product Launches

## Introduction

Amazon, the e-commerce giant, has introduced the FBA New Selection Program to revolutionize how sellers launch new products on its platform. This program aims to make product launches easier, more cost-effective, and less risky for both established brands and new sellers. Let’s delve into the details of this exciting initiative.

## What is the FBA New Selection Program?

The FBA New Selection Program is designed to encourage sellers to introduce fresh products to the marketplace. It provides several benefits that allow sellers to test new products without immediate financial burdens. Here are the key features:

1. Free Storage: Sellers enjoy free monthly storage for a specified number of units (based on the product size) for the first 90 days after the initial unit is received at an Amazon fulfillment center.

    – For Standard-size ASINs, the first 50 units have no storage fees.

    – For Oversize ASINs, the first 30 units are exempt from storage fees.

2. Free Liquidations: Sellers can liquidate any of the first 50 (Standard-size) or 30 (Oversize) units within 180 days after the initial inventory-received date, without incurring liquidation fees.

3. 5% Rebate for Brand-Registered Sellers: If you’re brand-registered, you qualify for a 5% rebate on sales of branded new-to-FBA ASINs. This incentive encourages brand owners to explore new product offerings.

## How Does It Work?

1. Eligibility: The program is open to all merchants. Whether you’re an established brand or a new seller, you can participate.

2. Unlimited New ASINs: Once enrolled, you can use the fee waiver benefits for an unlimited number of new-to-FBA parent ASINs that you create. So, if you’re launching multiple products, they’re all eligible.

3. Risk-Free Testing: Brands can now test out new products without worrying about accumulating storage fees if they don’t sell immediately. This risk-free testing encourages innovation and diversification.

## Conclusion

Amazon’s FBA New Selection Program empowers sellers by reducing barriers to entry for new products. Whether you’re a seasoned seller or just starting out, take advantage of this opportunity to expand your product portfolio and enhance your customer experience.

Remember, innovation drives success, and with Amazon’s support, your next big idea could be the next bestseller!

By participating in, you receive
– free monthly storage
– free liquidation of unproductive inventory,
– a balance of $100 for new shippers and $200 for Amazon Global Logistics program
– free remuval order processing
– 50 dollars. $50 balance to use for pay-per-click when setting up an ad campaign
– 50 dollars in coupons

Starting March 1, 2023, you will also receive a bonus/cashback of 10% – up to 12% of your turnover for 90 -120 days .🔥 (Brand Regestry owners only)

 

For more information, visit Amazon’s official help page on the https://sellercentral.amazon.com/gc/fulfillment-by-amazon/new-selection

 

Using 2D barcodes to provide box content information to Amazon will reduce the time needed between your products arriving at the fulfillment center and your products being available for sale.

To enable the 2D barcode option, follow these steps:

1. Go to Fulfillment by Amazon settings in your Seller Central Account.
2. Locate Inbound Settings and click Edit.
3. Select Enable next to 2D Barcodes for Box Content Information.
4. Click Update.

LuckyPrep will automatically generate 2D Barcodes based on your shipment items to communicate box content information. The inbound Amazon fulfillment center will simply scan your 2D barcodes to determine the contents of a specific box.