Overview

Amazon's FBA Inbound Placement Service Fee, which took effect in March 2024, replaced the former inventory placement program and introduced a new cost layer for sellers who ship inventory to a single fulfillment center. The fee reflects Amazon's cost of redistributing that inventory across its warehouse network. For sellers who understand the tiered pricing structure and available optimization strategies, there are meaningful ways to reduce or even eliminate these charges.

What Changed Under the New Fee Structure

• Old program replaced entirely — The legacy inventory placement service was retired and replaced with the Inbound Placement Service Fee, fundamentally changing how distribution costs are passed to sellers.
• Three service tiers introduced — Sellers now choose between Minimal Shipment Splits (one destination, highest fee), Partial Distributed (multiple destinations, reduced fee), or fully distributed shipping (lowest or no fee).
• Size-based pricing tiers — Fees scale with product dimensions: small standard items (16 oz or less) pay the least, large standard items fall in the middle, and large bulky items carry the steepest per-unit charges.
• Geography matters — Shipments routed to certain U.S. regions incur higher fees, particularly fulfillment centers in less accessible areas.
• Partial offset from lower base fees — Amazon reduced base fulfillment fees simultaneously, though most sellers using minimal splits still see net increases of roughly $0.27 per unit for standard items and $0.58 for large bulky products.

How the Pricing Model Works

The fee is calculated using three variables: the item's size and weight classification, the service tier selected during shipping plan creation, and the geographic location of the inbound destination. This multi-factor approach means two sellers shipping the same product could pay different fees depending on their logistics choices.

At the low end, small standard items incur charges between approximately $0.21 and $0.30 per unit. Large bulky items face significantly steeper fees, ranging from around $1.16 to $3.00 per unit depending on the service tier and destination. Sellers can review exact fee estimates within the shipping plan workflow before finalizing any inbound shipment, which allows for cost comparisons across different distribution strategies before committing.