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How do you avoid Amazon (Inbound Placement Fee (IPF)?

Avoiding or minimising Amazon Placement fees


To avoid Amazon Inventory Placement Fees (IPF):


  1. Select “Optimise placement” (if available) when creating your FBA shipment.


  • This option usually appears only if you’re sending at least 5 identical cartons or pallets or more, with each containing the same quantity and items.
  • It allows Amazon to distribute inventory without charging IPF
  • Downside: you’ll have higher freight costs since you’re sending to multiple FBA warehouses around the USA.
  1. Ship to an Amazon Warehouse & Distribution (AWD) facility instead of an FBA warehouse.


  • Amazon does not charge placement fees for inventory sent to AWD.
  • From AWD, Amazon can redistribute stock to FBA fulfillment centers at no extra IPF cost.

Updated on: 31/10/2026

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