Amazon Global Logistics is rolling out two new air freight options for sellers in Q4 2024. Understanding the cost structure and transit times of these services is critical for sourcing and inventory planning decisions, especially if you’re currently paying standard FBA inbound placement fees.
What’s Changing
- Seller Managed Placement (SMP) Air: Launching in early Q4, allows sellers to ship to all five US fulfillment regions with zero FBA inbound placement service fees (previously ocean-only since July 2024)
- Economy Air: Live now, offering 11–15 day transit from Shanghai and Shenzhen into Los Angeles at a lower cost tier than standard air options
Why This Matters
- Eliminates placement fees for sellers using SMP air, reducing total inbound logistics costs
- Economy Air provides a middle ground between slow ocean freight and expensive expedited air
- Both options change the math on when air freight becomes cost-effective versus ocean freight
- Affects sourcing timeline decisions—faster replenishment may now be more competitive on price
How Squatio helps
When evaluating whether to use these new air freight options, sellers need visibility into their product velocity and margin structure. Prospect (Product Database) lets you analyze your catalog’s demand patterns and turnover speed, so you can model whether the faster transit of SMP Air or Economy Air justifies the incremental cost over ocean freight for specific SKUs. This data is essential for the “check the math” decision the source headline emphasizes—plugging in the new fee structure against your actual inventory turnover will show you exactly which products benefit most from these faster inbound methods.
What air freight option are you currently using for sourcing, and how would eliminating placement fees change your replenishment strategy?
Source: Amazon Is Bringing $0 Placement Fees to Air Freight. Check the Math First.