Amazon Ends FBA Split Shipments to Cut Costs Boost Efficiency

This article addresses the inventory placement challenges faced by Amazon sellers and offers a seller-tested solution: canceling the 'Amazon Logistics Multi-Destination Program'. By sharing a success story and practical steps, it helps sellers reduce the probability of inventory splitting. Furthermore, it provides additional optimization suggestions to help sellers reduce costs, improve efficiency, and enhance operational effectiveness. This guide aims to empower sellers to streamline their logistics and boost their overall performance on the Amazon platform.
Amazon Ends FBA Split Shipments to Cut Costs Boost Efficiency

Many Amazon sellers have been struggling with the platform's inventory distribution system that frequently splits shipments across multiple fulfillment centers. This unexpected division leads to skyrocketing logistics costs and operational inefficiencies, disrupting carefully planned shipping strategies.

A Potential Solution Emerges

Recent discussions among seller communities have highlighted a promising approach to address this challenge. Several sellers report successfully preventing shipment splitting by opting out of Amazon's "Multiple Destinations" program.

The breakthrough came when sellers noticed that Amazon's official description of the Multiple Destinations program - which "sends eligible standard-size SKUs to up to three designated receiving centers" - perfectly matched the common scenario of shipments being divided among two or three warehouses.

Verified Success Stories

Practical implementation has yielded positive results. One logistics provider confirmed that their client stopped experiencing shipment splitting after withdrawing from the program. Additional verification came from independent sellers who shared documented proof of successful outcomes after making this adjustment.

The opt-out process appears straightforward. Sellers have reported success using both English and Chinese support tickets. For reference, here's the template used by successful applicants:

Dear Amazon team,

We don't want to participate in Multiple Destinations.

Please make us opt out of Multiple Destinations.

Our merchant token [Your ID Here]

Thank you and best wishes.

Important Considerations

It's crucial to understand that opting out of the Multiple Destinations program doesn't guarantee complete elimination of shipment splitting. Amazon operates other inventory distribution programs that might still cause division. Removing this particular program simply returns sellers to their original status before enrollment, potentially reducing splitting frequency.

Additional Strategies to Minimize Splitting

  • Product Optimization: Maintain standard product dimensions and weights to avoid classification as oversized items.
  • Inventory Distribution: Strategically allocate stock based on regional sales patterns and warehouse capacity.
  • Consolidation Services: Consider Amazon's logistics consolidation options to combine multiple small shipments.
  • Policy Monitoring: Stay informed about Amazon's frequent policy updates to adapt strategies accordingly.

While no single solution completely prevents shipment splitting, the Multiple Destinations opt-out approach provides sellers with greater control over their logistics operations. This development offers valuable insight for sellers seeking to optimize their fulfillment processes and reduce operational costs.