In inventory logistics, getting stock into Amazon Fulfillment Centers (FCs) used to be simple: create a shipment, pack boxes, and send them to your designated local warehouse.
However, Amazon’s ongoing push for hyper-local, same-day delivery has completely transformed inbound logistics. Amazon wants inventory distributed evenly across regional hubs: North (Delhi/Haryana), West (Mumbai/Bhiwandi), South (Bangalore/Hyderabad), and East (Kolkata).
To force sellers to assist with this regionalization, Amazon has introduced and expanded Inbound Placement Surcharges and Multi-Destination Shipment Splits.
Minimal Placement vs Distributed Split FC
When creating an FBA shipping plan, sellers generally encounter two pathways:
- 1Minimal Shipment Split (Single Destination):
- You send 100% of your shipment to a single regional Amazon fulfillment center near your warehouse.
- Amazon handles the internal redistribution to other states.
- The Tradeoff: Amazon levies an Inbound Placement Service Fee per unit to cover inter-FC linehaul freight.
- 2Distributed Multi-Destination Split (Partial / Full Split):
- Amazon requires you to split your inventory into 3 or 4 separate shipments headed to different regional FCs at your own expense.
- The Tradeoff: Zero or lower placement fees from Amazon, but significantly higher domestic transport logistics costs for managing 4 separate LTL/courier consignments.
The Strategic Decision Matrix
$$ ext{Total Inbound Cost} = ext{Outbound Courier Freight} + ext{Amazon Inbound Placement Surcharges}$$
- For lightweight, small items (under 300g): Paying the minimal placement fee and shipping to a single local FC is almost always cheaper than booking 4 separate courier pickups.
- For heavy, bulky items (furniture, large appliances): Shipping long-distance LTL freight across India destroys unit margins. Inbound to your closest regional FC and optimize your price for regional Prime customers.
Calculate the exact tipping point for your catalog with our FBA Inbound Placement Calculator.