Lowering Fulfillment Costs by Reducing FBA Shipping Frequency

What We’re Celebrating:

By ensuring a client had ample inventory coverage and switching them over to bi-weekly orders, we yielded fewer, larger shipments that were prone to be transported via large truckload and truckload and lowered their shipping costs by 17%.

The Challenge:

GO works with a large Seller Central client that was sending multiple shipments to Amazon fulfillment centers (FCs) per week, mostly via costly small parcel (SP) shipments. They were paying unnecessary costs for Amazon partnered carriers and their warehouses struggled to successfully prep for the constant shipments.

The Strategy:

Before reducing the brand’s FBA shipment frequency, our operations team helped them acquire a stable inventory position by making multiple orders a week based on product availability and demand, ensuring they always had 2 weeks of extra inventory at Amazon FCs. Once that built up a consistent supply of safety stock, we switched them over to bi-weekly orders to minimize new shipment prep and costs.

The Results:

Our strategy yielded fewer, larger shipments that were prone to be transported via large truckload and truckload vs. SP. This reduced the brand’s total shipping costs by 17%, with some ASINs experiencing reductions as great as 30%.

Looking for an agency to help you reduce your fulfillment costs?

GO's shipping optimizations drive cost savings, allowing our clients to reallocate funds from fulfillment fees to other critical areas of their business. Ready to see how GO can do this for you? Let’s connect!