When Will the Amazon Relocation Fee Come to Europe?

Since March 1, 2024, Amazon has introduced a relocation fee on the U.S. marketplace, directly impacting sellers. This fee applies to the redistribution of products between fulfillment centers (FCs). If a seller does not independently manage these relocations and instead ships inventory directly to the desired FCs, additional costs will be incurred. The fees are based on the weight and size of the items. — Since March 1, 2024, Amazon has introduced a **relocation fee** on the U.S. marketplace, directly impacting sellers. This fee applies to the redistribution of products between fulfillment centers (FCs). If a seller does not independently manage these relocations and instead ships inventory directly to the desired FCs, additional costs will be incurred. The fees are based on the weight and size of the items.

In this article, we analyze the impact of these changes by reviewing our average inventory levels from March 2018 to February 2024 and the monthly relocated inventory volume on Amazon.

How Have Relocations Changed Over the Years?

Our data reveals a clear trend: Amazon has significantly reduced active inventory relocation, despite initially strongly supporting the practice.

The attached graphic illustrates the following values:

Light blue: Average monthly inventory level.
Dark blue: Monthly relocated inventory volume.
Orange: Ratio of relocated inventory to average inventory level.

A Decline in Relocation Rates

At the outset, the relocation rate was around 30%, meaning nearly one-third of inventory was actively redistributed between fulfillment centers to balance demand and storage capacity. However, this rate has now dropped to approximately 15%.

Seasonal Trends in Relocation

Our analysis highlights clear seasonality:

Spring and Summer: Fewer relocations, as inventory levels remain more stable.
Autumn and Winter: Increased relocation volumes due to peak seasons, such as Black Friday, Christmas, and Prime Day.

This reflects seasonal challenges: During peak periods, fulfillment center capacities are heavily utilized, requiring less frequented FCs to be used to prevent bottlenecks. At the same time, demand for fast delivery increases significantly.

Challenges for Sellers

The new rules present several challenges:

Rising warehouse management costs: Sellers must take greater control over their logistics, leading to additional expenses.
High inventory investments: Many sellers, including us, have invested significantly in inventory to shorten delivery times. However, this strategy is becoming increasingly difficult due to restricted relocation options.

Developing an independent logistics infrastructure is becoming increasingly crucial. But how many sellers can afford this in today’s market environment?

Conclusion: Strategic Planning Is Key

If the relocation fee is introduced in Europe in the future, sellers will need to adjust their strategies accordingly. An efficient warehouse and relocation strategy is essential to avoid unnecessary fees and ensure smooth order processing.

For those who can invest in their own logistics and infrastructure, this will be a long-term advantage. However, for many sellers, relying on Amazon’s logistics services and associated costs will remain a challenge.

As Amazon continues to evolve its logistics model, it will be crucial for sellers to stay informed and adapt proactively. How well is your business prepared for these changes?