How to Skip High Costs and Limitations of Amazon Inventory Placement Service with Forceget

For Amazon FBA sellers, optimizing your supply chain isn’t just about moving products. It’s about reducing cost, saving time, and staying compliant with Amazon’s requirements. One of the lesser understood elements of the FBA process is the Amazon Inventory Placement Service (IPS), which gives sellers the option to send all units to a single fulfilment center instead of having them split across multiple ones. 

While this can seem like a convenient solution, it comes at a significant cost. As of 2025, the Amazon inbound placement service fee and associated FBA inventory placement service fees continue to risk, making it harder for sellers to maintain competitive margins. 

That’s where Forceget comes in, a logistics solution designed specifically to help Amazon sellers navigate IPS problems and avoid Amazon placement fees entirely. 

What is Amazon Inventory Placement Service?

Amazon Inventory Placement Service (IPS) is a fulfillment option available to FBA (fulfillment by Amazon) sellers that determines how and where inventory is distributed across Amazon’s fulfillment centers. 

Instead of allowing Amazon to split shipments across multiple locations though is default system, known as Amazon optimized shipments splits, IPS allows sellers to send their inventory to a single Amazon warehouse. This can simplify the shipping process for sellers but comes at a price, known as the Amazon inventory placement service fee. 

Sellers often question the benefits and drawbacks of the inventory placement service Amazon offers, especially given the rising inbound placement service fee structure in 2025. 

While IPS offers more control, the cost implications can heavily impact profitability if not used strategically. 

How Does Amazon Inventory Placement Service (IPS) Work?

When FBA sellers create a shipment plan, Amazon usually divides the inventory into multiple destinations based on anticipated demand, location efficiency, and fulfillment capacity. This is known as Amazon optimized shipment splits.

However, sellers can override this in the Amazon placement program by enrolling in IPS. with IPS, all inventory of the same ASIN is shipped to one fulfillment center. After the inventory arrives, Amazon takes responsibility for distributing it internally across its network, which is where the inbound placement fee comes in. 

The Amazon FBA label placement must still comply with prep requirements, including barcoding and packaging rules. Many sellers wonder whether they should opt in. Knowing how the Amazon inbound placement service fee works is essential to determine if the strategy makes financial sense or whether working with an alternative like Forceget is more beneficial. 

Are Amazon Inventory Placement Service Options Right for You?

The answer depends heavily on your product type, shipment size, and overall margins. Amazon IPR may be effective in reducing the complexity of shipments and reducing prep errors. 

However, due to the mounting Amazon placement fees and limited applicability to certain product categories, many sellers are reconsidering their participation in the Amazon placement program. Here’s where it’s sometimes useful:

Smaller Shipments and Inventory Volumes 

If you are shipping a low number of units or testing a new product, the Amazon IP model may streamline your logistics. But even with smaller shipments, sellers must consider the FBA Inventory Placement Service Fee, which can erode margins quickly. 

Small and Lightweight Goods 

For lightweight, small size items, IPS may offer a slight advantage in logistics management. However, the benefits are often overshadowed by the Amazon inbound placement fee, especially when margins are already tight. 

Products with a High Profit Margin 

Sellers with higher ticket items may find the costs of the Amazon IP program justifiable. But even then, many prefer to skip IPS entirely to avoid the limitations of the Amazon-optimized shipment splits and high placement fees.

Amazon Inventory Placement Service Fees 2025​

As of 2025, the Amazon inbound placement fee has been updated to reflect Amazon’s increasing internal distribution costs. The fee is charged per unit and varies based on size and weight. 

For standard sized products, cost can range from $0.30 to $1.30 per unit, while oversized goods may see placement fees as high as $6 or more. These Amazon placement fees apply whether you’re using the standard IPS model or FBA inventory placement service. 

The more units you ship, the higher the cumulative cost, particularly if your product catalog includes heavy or bulky items. Sellers are strongly encouraged to analyze the total cost implications of the Amazon inbound placement service fee before enabling the service. 

Advantages of Amazon Inventory Placement Service

While the service carries notable costs, there are a few operational benefits to consider, particularly for newer or smaller sellers. 

Amazon Assumes Distribution Responsibility 

One of the top benefits is that Amazon handles the redistribution of your goods. You don’t need to calculate inventory levels across multiple fulfillment centers. 

Single Shipping Destination 

You only need to ship your goods to one fulfillment center, making it simpler to coordinate logistics and reduce the risk of multi-point shipment delays or issues with labeling. 

Ideal for Smaller Shipments 

Sellers with smaller test shipments or those launching a new product may find it easier to manage FBA processes if only one destination is involved. 

Disadvantages of Amazon Inventory Placement Service

Despite its operational simplicity, the Amazon IP system has several drawbacks that must be addressed. 

Potential for High Costs 

The inbound placement service fee can become excessive, especially as your shipment volume scales. Many sellers underestimate how quickly costs can add and especially if they don’t fully understand Amazon placement fees across different size tiers. 

Limited Applicability to Specific Items 

IPS is not available for all product categories. Certain restricted ASINs, dangerous goods, and hazmat items are not eligible, limiting the service’s use. It’s important to also understand inbound prep Amazon protocols and ensure compliance before enrollment. 

Extended Delivery Timeframes 

Although sellers only ship to one location, the redistribution handled by Amazon can introduce delays in making products available for sale. This can lead to slower FBA check ins and longer restock lead times, affecting your Buy Box performance. 

Skip the Amazon Inventory Placement Fees with Forceget

Sellers seeking to avoid the high costs and limitations of Amazon’s inventory placement program are increasingly turning to third party logistics (3PL) providers like Forceget. With Forceget, you can consolidate shipments, prepare inventory for FBA, and route products to the right Amazon fulfillment centers without paying Amazon’s inbound placement fees. 

Forceget offers end to end freight forwarding and FBA prep services, including Amazon optimized shipment splits that comply with Amazon’s routing requirements. This allows sellers to benefit from smarter, more efficient shipment solutions without being tied to the cost structure of the Amazon IP program. 

Forceget also provides tailored support for inbound prep Amazon procedures, including FNSKU labeling, bunding, poly bagging, and more. For sellers who prioritize margin preservation and streamlined logistics, Forceget is an ideal alternative.