Fulfillment Strategy & Logistics Optimization | FBA, FBM, SFP

At Shiftur, We Engineer Profitable Logistics

We don't just ship products; we engineer profitable logistics. Amazon's fee structure is complex—from inbound placement service fees to aged inventory surcharges.

We analyze your product dimensions, turnover rate, and margins to determine the perfect fulfillment strategy: whether it's FBA (Fulfillment by Amazon), FBM (Fulfillment by Merchant), or SFP (Seller Fulfilled Prime).

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FBA Optimization (Fulfillment by Amazon)

Amazon FBA is powerful, but without oversight, fees can destroy your profits. We use a microscopic approach to audit every dollar you pay to Amazon.

Inbound Placement Strategy (Cost vs. Speed Analysis)

Amazon now charges based on how you send inventory. We analyze your shipment size to choose the best option from the Send to Amazon workflow:

Amazon-Optimized Splits

We split your shipment to 4+ locations. This requires more prep work but waves the placement fee entirely, saving you significant margin on high-volume orders.

Partial or Minimal Splits

For smaller batches, we calculate if paying the reduced fee (sending to 1 or 2 locations) is cheaper than the cost of splitting shipments into multiple small parcels.

Note: These fees are charged 45 days after receipt—we factor this lag into your P&L analysis so you aren't surprised later.

IPI Score Management (Inventory Performance Index)

A low IPI score (<400) restricts your storage capacity. We manage the four key influencing factors:

Stranded Inventory Fixes

We monitor daily for listings that are "Stranded" (inventory at Amazon but not buyable) and fix them immediately to stop the IPI drain.

Sell-Through Rate Optimization

We run targeted PPC campaigns or "Outlet Deals" to move slow-moving stock, keeping your rolling 90-day sell-through rate healthy.

New ASIN Protection

Amazon excludes new ASINs from IPI for the first 90 days. We aggressively push sales during this "Honeymoon Period" to establish a high baseline score.

Fee Reduction (Audit & Size Tiering)

Packaging Optimization

A difference of 0.1 inches can push your product from "Large Standard" to "Small Oversize," doubling your fees. We audit your packaging dimensions against Amazon's Size Tiers to ensure you are in the cheapest possible bracket.

Fee Preview Audits

We regularly download the Fee Preview Report to catch any discrepancies where Amazon might have mis-measured your product and is overcharging you.

Avoiding Surcharges (Storage & Low-Inventory)

Aged Inventory Surcharge

Inventory stored for more than 180 days incurs massive fees. We track inventory age on a "First-in, First-out" basis and automate removal/disposal orders before the 180-day mark.

Low-Inventory-Level Fee

Amazon now penalizes you for carrying too little stock (below 28 days of supply). We monitor your Historical Days of Supply to ensure you never trigger this penalty while avoiding overstocking.

2. FBM Strategy (Fulfillment by Merchant)

Not every product belongs in FBA. We treat FBM not just as a backup, but as a strategic profit center.

Big & Bulky Items (Margin Protection)

FBA fees for oversized items include heavy weight handling and storage costs. For products exceeding standard pallet dimensions, we utilize FBM. By negotiating rates with third-party carriers (FedEx/UPS) or using Amazon Buy Shipping, we can often ship these items cheaper than Amazon FBA, keeping your net margin positive.

Q4 Backup Plan (The "Safety Net")

During Q4 (Black Friday/Christmas), Amazon FBA receiving times can slow down to 3-4 weeks. If your FBA stock runs dry, your ranking crashes. We keep an FBM listing active with a "Shadow SKU." The moment FBA stock hits zero, the FBM listing activates, keeping your Buy Box and sales rank alive while FBA restocks.

Hazardous Materials (Hazmat) & Returns

Many profitable items (aerosols, certain batteries, liquids) are classified as "Dangerous Goods" and have strict FBA capacity limits or are rejected entirely. We manage FBM logistics for these hazmat items, ensuring compliance with shipping regulations without relying on Amazon's restrictive hazmat program.

3. SFP Consultation (Seller Fulfilled Prime)

Want the Prime badge without the FBA fees? SFP is the answer, but the metrics are strict.

Warehouse Auditing

We assess if your 3PL or warehouse can meet Amazon's strict 1-2 day delivery requirements.

Performance Monitoring

We track your on-time shipment rates and cancellation rates to ensure you don't lose the Prime Badge.

Cost Analysis

We calculate if the cost of 2-day shipping is cheaper than FBA fulfillment fees for your specific SKUs.

How Shiftur Helps You Master Logistics

Logistics isn't just about moving boxes—it is about Cash Flow and Capacity. Here is how Shiftur manages the backend so you can focus on selling.

1. We Ensure You Never Run Out of Storage Space (Capacity Manager)

Amazon limits how much stock you can send based on your performance. If you hit your limit during Q4, you can't restock, and you lose thousands in sales.

What We Do: We use the FBA Capacity Manager tool to forecast your sales months in advance. If we see you need more space, we submit a request to reserve extra storage capacity early, ensuring your growth is never capped by Amazon's limits.

2. We Find Money Amazon Owes You (Fee Auditing)

Amazon handles millions of packages, and they make mistakes. They might overcharge you for weight, lose your inventory, or damage items.

What We Do: We constantly review the Fee Preview Report and SKU Economics. If we find a discrepancy (e.g., Amazon says your product weighs 2 lbs when it is actually 1.5 lbs), we file a claim and get that money refunded to your account.

3. Automated Cleanup for Dead Stock

Holding onto products that don't sell is like paying rent for an empty apartment. It drains your profit.

What We Do: We set up automated alerts for inventory aging past 180 days. Before Amazon charges you the expensive "Long-Term Storage Fee," we strategically remove that stock or liquidate it to recover cash.

4. Data-Driven Restocking (No Guesswork)

Ordering too much stock ties up your cash; ordering too little leads to "Out of Stock" penalties.

What We Do: We analyze your sales velocity and lead times (how long manufacturing + shipping takes). We tell you exactly when to reorder and how many units to order so you stay in the "Goldilocks Zone"—not too much, not too little.

Frequently Asked Questions

How does Shiftur help reduce FBA Inbound Placement fees?

Amazon now charges for sending inventory to a single location. We analyze your shipment size and margins to decide if it's cheaper to pay the fee (Partial/Minimal split) or split the shipment to multiple fulfillment centers (Amazon-Optimized split) to waive the fee entirely.

What is the best strategy to improve my IPI Score?

A low IPI limits your storage. We focus on three levers: increasing your sell-through rate, fixing stranded inventory immediately, and removing excess inventory that is older than 180 days. This keeps your score in the "healthy" range (usually above 400).

Can I use both FBA and FBM for the same product?

Yes! This is called a "Hybrid Strategy." We recommend keeping the FBA offer as the primary one for the Prime benefits, while the FBM offer sits in the background as a safety net. If FBA stock runs out, the FBM offer activates instantly so you never lose sales.

How do you handle "Low-Inventory-Level" fees?

Amazon charges a fee if you hold too little stock relative to demand. We use forecasting tools to ensure you maintain enough inventory to cover 30-60 days of sales, avoiding this penalty while ensuring you don't overstock.

Is SFP (Seller Fulfilled Prime) right for my business?

SFP is best for high-priced, heavy items where FBA fees are high, provided you have a strong logistics partner who can ship fast. If you are a standard private label seller with small items, FBA is usually more cost-effective. We run a break-even analysis to tell you for sure.

Ready to Optimize Your Fulfillment Strategy?

Stop losing money to hidden fees and inefficient logistics. Let our experts engineer a profitable fulfillment strategy tailored to your business.