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Amazon has revolutionized the e-commerce landscape, offering sellers a global platform to expand their businesses. However, managing inventory efficiently can be complex, especially for Amazon FBA sellers. One major challenge sellers face is Amazon split shipments—a process where inventory is distributed across multiple fulfillment centers rather than being sent to a single location. While this benefits Amazon and its customers, it presents logistical and financial challenges for sellers.
In this blog, we’ll explore Amazon split shipments, their impact on Amazon FBA sellers, and strategies to minimize associated costs.
Amazon split shipments occur when Amazon requires sellers to send inventory to multiple fulfillment centers instead of a single warehouse. This approach provides several advantages:
Faster Delivery Times: With over 185 fulfillment centers worldwide, Amazon ensures faster shipping by dispatching products from the nearest available location. This leads to increased customer satisfaction and retention.
Efficient Inventory Management: By distributing inventory strategically, Amazon reduces stockouts and ensures quicker order fulfillment, improving sales potential.
Workload Distribution: Split shipments help balance workload across fulfillment centers, preventing delays and bottlenecks, especially during peak seasons.
Cost Savings: Amazon often reduces overall shipping expenses by using multiple warehouses, passing on benefits like free shipping or lower prices to customers.
Improved Customer Experience: With multiple fulfillment centers, customers enjoy more flexible shipping options, improving overall shopping experiences.
While Amazon split shipments offer benefits, they also pose challenges for Amazon FBA sellers, including:
Higher Inbound Shipping Costs: Sellers may need to ship inventory to multiple locations, increasing logistics expenses.
Longer Processing Times: Managing split shipments requires additional planning, increasing operational complexity.
Inventory Imbalance: Distributing stock across warehouses may lead to shortages in certain locations, affecting order fulfillment.
To mitigate the impact of split shipments, Amazon FBA sellers can implement the following strategies:
Optimize Packaging: Use compact and lightweight materials such as bubble mailers or poly bags to reduce dimensional weight charges. Additionally, ensure products are well-protected with sturdy boxes and cushioning materials.
Pack in Cases: Shipping products in bulk cases instead of individual units minimizes the likelihood of split shipments, saving time and shipping costs.
Consolidate Shipments: Whenever possible, combine shipments to the same fulfillment center. This reduces shipping costs and simplifies logistics management.
Stay Updated on Amazon’s Inbound Shipping Policies: Understanding Amazon’s latest FBA shipping guidelines helps avoid unexpected fees and penalties. Regularly review their requirements to stay compliant and optimize workflow.
Partner with a Third-Party Logistics Provider (3PL) Outsourcing fulfillment to a trusted 3PL provider like Stock and Ship can help reduce costs. 3PL services offer bulk shipping discounts, warehouse management, and strategic distribution, ensuring a more efficient supply chain.
While Amazon split shipments can be challenging, Amazon FBA sellers can take proactive steps to reduce costs and streamline operations. By optimizing packaging, consolidating shipments, and leveraging 3PL services, sellers can improve efficiency and profitability.
Need expert logistics support? Stock and Ship can help you navigate Amazon FBA challenges and optimize your fulfillment process. Contact us today to scale your business with confidence!
Amazon divides shipments to optimize inventory distribution and ensure faster customer deliveries.
While you cannot completely avoid them, strategic inventory planning, case packing, and 3PL partnerships can help minimize their impact.
Split shipments may increase inbound shipping costs, but they can also lead to lower fulfillment fees due to Amazon’s optimized inventory management.
Amazon does not directly charge extra, but sellers may incur higher shipping costs when sending inventory to multiple locations.
A 3PL service like Stock and Ship can consolidate shipments, negotiate lower freight rates, and optimize fulfillment processes, helping Amazon FBA sellers save money.
