Analysis of Amazon's new shipping rules on February 20

Starting from February 20, 2025, Amazon will cancel the partial shipment splitting option for standard-sized products, and only retain Amazon's optimized shipment splitting and minimum shipment splitting two warehousing configuration modes. This adjustment directly affects the seller's logistics costs and operational efficiency, especially for small and medium-sized sellers, multi-SKU merchants and companies with insufficient flexibility in first-leg transportation. As a professional third-party order fulfillment service provider, Chinadivision is well aware of the impact of this change on your business and is willing to provide you with comprehensive order fulfillment and delivery solutions.

Overview of Amazon's new shipping rules

From February 20, 2025, Amazon Logistics will make the following adjustments to the warehousing configuration service for standard-sized products:

Cancel the "partial shipment splitting" option: In the past, sellers could choose to ship goods to 2-3 warehousing locations to reduce costs. But this option will no longer exist.

Added "Amazon Optimized Shipment Split": Based on Amazon's logistics data and algorithms, it provides sellers with optimization solutions. If sellers can pack at least 5 identical cartons or pallets and send them to multiple operation centers, they can waive the warehouse configuration service fee. Its advantage is 0 configuration fee, which is suitable for large sellers with stable sales and batch standard packaging. However, small and medium-sized sellers have limited inventory and it is difficult to meet the standards for mixed loading of multiple SKUs, and the first-leg warehouse transportation cost may increase.

Keep "Minimum Shipment Split": Sellers can ship inventory to a single warehouse in the selected geographic area (West/Central/Eastern US), with no packaging restrictions but paying a warehouse configuration fee (single-unit cost is about +$0.27). Flexible operation, suitable for sellers with complex SKUs or scattered inventory. However, the configuration fee squeezes profits, and additional optimization of other links is required to balance costs.

Why is this change significant?

For many years, "split shipments" allowed sellers to ship goods to multiple locations without paying additional warehousing service fees. However, under the new regulations, this option is cancelled. Sellers must choose between the remaining two options, each with its own advantages and challenges.

What does this mean for sellers?

Large sellers with uniform inventory

For large, well-known sellers with high shipping volumes and uniform product packaging, Amazon optimized splitting may be the most cost-effective option. It allows you to send goods to multiple locations while avoiding the warehouse configuration service fee, as long as you meet the minimum shipping requirements (at least five identical cartons or pallets).

Smaller or newer sellers

If you are a smaller seller or a seller with multiple SKUs (stock keeping units), the new rules may have a greater impact. Minimum shipping splits may become a more viable option, but it will increase costs. The warehouse configuration service fee plus the potential higher storage fees may reduce your profit margins, especially if your sales volume is not enough to justify higher shipping costs.

Chinadivision One-stop Solution: Reduce costs and increase efficiency, easy compliance

As a professional third-party order fulfillment service provider, we help B2B enterprises and e-commerce sellers seamlessly adapt to Amazon's new regulations, optimizing the entire chain from warehousing, packaging to distribution, allowing you to focus on growth and worry-free logistics.

1. Intelligent warehouse distribution strategy, accurate matching of new regulations

Data-driven decision-making: Based on your sales history, inventory size and product characteristics, calculate the total cost of optimized and minimum splitting, and recommend the most cost-effective solution.

Multi-warehouse fulfillment network: Through the domestic warehouse layout in the United States, your goods will be distributed to warehouses near Amazon's various operation centers in advance to reduce the first-leg warehouse transportation cost.

Avoid configuration fees: For products that need to be optimized and split, we complete 5+ boxes of the same specifications according to Amazon standards to ensure 0-cost warehousing.

2. Standardized packaging service, 100% in line with platform requirements

SKU preprocessing: Support standardized sorting, combination and packaging of multi-category products to ensure that the types and quantities of each box of goods are exactly the same, meeting Amazon's rigid requirements of 5 boxes of the same specifications.

Mixed loading solution: For multi-SKU sellers, provide customized packaging solutions to balance warehouse demand and packaging compliance.

3. Cost transparency, guaranteed profits

First-leg freight optimization: Integrate sea/air transportation resources, provide LCL and dedicated line services, and reduce the increase in transportation costs caused by warehouse distribution.

Cost hedging model: If you choose the lowest split, we will offset the impact of configuration fees on profits by increasing warehouse turnover and providing discounts on last-mile delivery.

As a professional third-party order fulfillment service provider, Chinadivision has many years of Amazon logistics experience and knows how to provide sellers with the most cost-effective logistics solutions under the new regulations. Our services cover multiple aspects such as order processing, inventory management, distribution and after-sales service, aiming to help sellers reduce costs, improve efficiency and enhance customer experience.

Under the new Amazon shipping rules, keeping up with platform rules and dynamically optimizing strategies are key. Choose Chinadivision as your order fulfillment service provider, and we will do our best to help you improve your order processing capabilities, increase customer satisfaction, and achieve sustainable business growth. If you have any questions or need further support, please feel free to contact Chinadivision. We look forward to working with you to achieve a win-win situation!