Overview

Amazon has begun testing a pilot called Apollo that aims to lower fulfillment fees for sellers whose products sell for less than $25. By routing orders through fulfillment centers located in the same region as the buyer, Amazon hopes to cut long‑haul shipping costs and pass the savings to participating sellers. The program is invitation‑only and focuses on a narrow segment of low‑priced inventory, making it especially relevant for sellers battling thin margins.

Key Points

• Invitation‑only enrollment — Amazon selects eligible sellers, sends an email invitation, and provides a short survey where sellers can opt‑in to the pilot. For example, a seller of budget‑friendly kitchen gadgets received an email with a link to review 12 of their SKUs that qualified for Apollo.
• Targeted at sub‑$25 items — Only products priced below $25 are considered, because standard FBA fees can consume a large portion of the sale price. A $19 toy that previously paid $5.50 in fulfillment fees could see that fee reduced by several cents under Apollo.
• Regional fulfillment model — Orders are fulfilled exclusively from warehouses within the buyer’s geographic region, eliminating cross‑country legs. If a customer in Dallas orders a qualifying product, the item is shipped from a fulfillment center in the Southwest rather than a distant hub in the Midwest.
• Discounted fulfillment fees — Enrolled SKUs receive a reduced per‑unit fee for the duration of the test. Amazon has not disclosed the exact percentage, but sellers have reported fee drops of 10‑15 % on pilot items.
• Amazon‑curated product list — Sellers cannot pick any SKU; Amazon supplies a pre‑approved list based on size, demand, and existing inventory distribution. For instance, a seller of small electronics was offered 8 of their 30 SKUs because those items met the size and velocity criteria.

How Apollo Works

1. Order routing to nearby centers — When a buyer places an order for a qualified SKU, Amazon’s system identifies the buyer’s ZIP code and selects a fulfillment center in the same region. Example: A customer in Chicago orders a $22 garden tool; the order is automatically routed to a Chicago‑area fulfillment center instead of a California hub.