Amazon Now Lets FBM Sellers Offer Pallet Delivery for Business Bulk Orders
In April 2024 Amazon introduced a pallet delivery option for FBM sellers, limited to Business buyers with orders that exceed roughly 500 lb or fill a full pallet. Sellers enable it via Freight Shipping Templates, can set a $75 handling fee plus the carrier’s LTL rate, and must use an LTL carrier integrated with Seller Central.
Overview
Amazon has rolled out a new shipping option that lets Fulfilled‑by‑Merchant (FBM) sellers ship large‑volume Business orders on a single pallet. The feature, launched this month, targets Amazon Business buyers who place bulk purchases, and it promises lower freight costs and a smoother delivery experience for commercial customers.
Key Points
- FBM‑only availability — The pallet service can be activated solely by sellers who handle fulfillment themselves; it is not offered to listings fulfilled through Amazon’s FBA network.
- Restricted to Business buyers — Only Amazon Business accounts placing high‑quantity orders can select pallet delivery; regular consumer shoppers continue to see standard parcel options.
- Order size trigger — A shipment qualifies when the cart contains more than one unit and the combined weight approaches or exceeds roughly 500 lb, or when the dimensions make a full pallet the most efficient packaging method.
- Commercial‑address requirement — Pallet shipments are limited to delivery sites classified as commercial (warehouses, retail stores, distribution centers); residential locations are excluded from this option.
- Freight carrier mandate — Sellers must arrange less‑than‑truckload (LTL) freight to move the pallet, meaning a traditional parcel carrier such as UPS or USPS cannot be used for these orders.
- Integrated carrier recommendation — Amazon advises using carriers that are already integrated with Seller Central’s tracking system to keep the Valid Tracking Rate (VTR) high and ensure end‑to‑end visibility for the buyer.
How Pallet Delivery Works
- Create or edit a freight template — In Seller Central, navigate to the shipping settings page, select “Freight Shipping Templates,” and either start a new template or modify an existing one. For example, a seller of industrial fasteners can add a new template named “Bulk Pallet Shipping.”
- Enable pallet option and set fees — Within the template editor, tick the box labeled “Allow pallet delivery” and specify any handling or freight surcharges. A typical configuration might add a $75 pallet handling fee plus the carrier’s quoted LTL rate.
Analysis & Recommendations
Why This Matters
The pallet service lets FBM sellers compete on large‑volume Business orders by lowering freight costs and automating checkout visibility. Using integrated LTL carriers keeps the Valid Tracking Rate high, while a $75 handling fee can be offset by per‑item savings (e.g., $30 to $12 per chair).
Key Takeaways
- Pallet delivery is FBM‑only and only visible to Amazon Business accounts.
- An order qualifies when weight approaches or exceeds ~500 lb or when a full pallet is the most efficient packaging.
- Sellers must use less‑than‑truckload (LTL) carriers integrated with Seller Central; UPS/USPS are not permitted.
- Typical setup adds a $75 pallet handling fee plus the carrier’s quoted LTL freight rate.
Recommended Actions
- →In Seller Central go to Settings > Shipping Settings > Freight Shipping Templates, create or edit a template and tick “Allow pallet delivery”.
- →Verify your LTL carrier is listed under Settings > Shipping Settings > Integrated Carriers; switch to an Amazon‑approved carrier if it isn’t.
- →Edit qualifying SKUs’ Shipping section to add a note like “Eligible for pallet delivery on orders > 500 lb (Business customers only)”.
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