Maximize profits: Our clients saved $100k+ on Amazon costs

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How we helped clients save $100k+ on Amazon fulfillment costs (...new Inbound Placement Program hack)

Amazon has changed their Inbound Placement Program requirements.

Now you need 5+ cases or 5+ pallets of a single SKU to qualify for optimized splits.

Many sellers are struggling with this change.

Here's how we helped our clients navigate it:

1️⃣ Evaluate inventory levels and sales velocity

First, we took a deep dive into our clients' data. We looked at:

- Current stock levels for each product
- How fast each item was selling
- Seasonal trends that might affect future sales

For example, one client selling beach accessories saw steady sales year-round in warm climates, but big spikes in spring for other regions.

We used this info to plan shipments that would meet the new requirements without overstocking.

2️⃣ Consolidate shipments across multiple SKUs

We helped clients group related products together to meet the new thresholds. For instance:

• A beauty brand combined their shampoo, conditioner, and hair mask into one larger shipment

• A kitchenware seller grouped all their baking tools into a single consignment

This approach not only met Amazon's new rules but also reduced overall shipping costs.

3️⃣ Stagger shipments to meet new thresholds

For clients with diverse product lines, we created a staggered shipping schedule. Here's how it worked for one client:

Week 1: Ship 5 pallets of best-selling t-shirts
Week 2: Send 5 cases each of socks and underwear
Week 3: Ship 5 pallets of seasonal jackets

This method ensured each shipment qualified for optimized placement while maintaining a steady flow of inventory.

4️⃣ Focus on top-performing SKUs

We identified the 20% of products driving 80% of sales for each client. For these items, we:

• Increased order quantities to meet the 5+ case/pallet requirement

• Prioritized their shipments to improve overall inventory health

5️⃣ Align shipment sizes with new requirements

We redesigned shipment plans to match Amazon's new rules. For example:

• A client selling small electronics used to send 3 pallets of each product. We adjusted to 5 pallets, reducing shipment frequency but qualifying for better placement.

• Another client switched from sending 20 cases spread across 4 SKUs to 5 cases each of 4 SKUs, meeting the new case minimum.

The results?

✅ Reduced fulfillment costs
✅ Improved lead times
✅ Better cash flow management

One client saved over $100,000 in just 30 days by implementing this strategy. Here's a breakdown of their savings:

- $50,000 from reduced split shipments
- $30,000 from lower storage fees due to improved inventory turnover
- $20,000 from decreased expedited shipping needs

Amazon's constant changes can be frustrating.

But with the right approach, you can turn challenges into opportunities.

Catch you next week,

Adam

Whenever you are ready, here’s how we can help you:

Grow Your Brand on Amazon & TikTok with 100% hands-off marketplace management

We've helped over 500 clients earn more than $550 million on Amazon. If you need help making the most of the Amazon opportunity, click here to book a call & claim a Free audit of your store/brand.