Streamlining Inventory Management: A Seller's Guide to Amazon's IXD Program

"Discover the advantages of Amazon's Inventory Placement Program (IXD) for sellers. This comprehensive guide explains how to simplify inventory management, reduce transportation costs, and enhance overall efficiency. Learn how to enroll in the program, navigate its requirements, and make the most of its benefits for your business."


Himanshu from Adsify

9/28/20235 min read

What is the Amazon Inventory Placement (IXD) program, and why should sellers use it?

The Amazon Inventory Placement (IXD) program helps sellers move their products between different Amazon Fulfillment Centers (FCs) in India. It's a program that offers several benefits:

Benefits of the IXD program:

Simplified Shipping: Instead of creating multiple shipments, sellers can create just one shipment to the nearest Receive Centre, which can save on transportation costs.

Efficient Appointments: Sellers only need to schedule one appointment at the nearest Receive Centre, eliminating the need for multiple appointments.

Cost Savings: Sellers are charged a single Shipping Fee for customer shipments from various FCs across India, potentially reducing freight and operational costs.

Can the list of Receive Centres and destination Fulfilment Centres change?

Yes, the list of Receive Centres and destination FCs can change based on customer demand. Sellers will be informed of any updates and can choose to opt out of the IXD program if they wish.

After registration, the Seller should send their inventory to any of the registered Receive Centres to participate in the IXD programme.

Are sellers restricted to a specific Amazon Receive Centre for deliveries?

While it's recommended to send inventory to the nearest Receive Centre to save on transportation costs, sellers can choose other Receive Centres if the nearest one has space limitations. Sellers from states without a Receive Centre can send their inventory to any accessible Receive Centre.

Are all ASINs on the Seller’s catalogue eligible for the programme?

There is a select set of ASINs that is not eligible for the programme:

a) ASINs which are either Heavy-Bulky (H&B), or fragile.

b) ASIN dimensions which are oversize (dimensions greater than 18 in x 14 in x 8 in or weight greater than 20 kg).

c) Food products can be sent to Receive Centres (DED3, BOM6, ISK3, BLR4, DEL8) only when the Seller updates their FSSAI licence for all their GST registered FCs and RCs.

What is the quantity of each SKU that can be sent to the Receive Centres?

Sellers enrolled for the programme will get recommendations on the quantity of each SKU for all FCs as per the Restock Inventory (RIM) dashboard to help them to determine the quantity that they want to send to the Receive Centres.

You can access the Restock Inventory here.

You can also go to Inventory in Seller Central, select Inventory Planning and click View Inventory in Stock details.

What are the best ways to manage the storage space that is allocated to sellers in Receive Centres?

To control Fulfilment Center storage in a more effective method, they have established an allowance for storage of inventory to all sellers who use Fulfilled through Amazon (FBA). The limit on storage for inventory is the number of stock units which are able to be stored or bound within the Amazon FC by FBA Sellers. Your FBA inventory level has to be below or equal to the storage limit for inventory. When sales increase the available space will increase for these FC's by analysing the last four weeks of sale run-rate. The Receive Centre BLR4 (South region) DED3 as well as DEL8 (North region) and BOM6 and ISK3 (West region) A space limit of default is set for sellers:

Standard inventory - 50k units

How does the appointment request process work for inbound shipments?

Sellers can request appointments through Seller Central, and Amazon handles the inventory movement to the destination FC on their behalf.

Do you have inventory that is accessible to the customer during purchase?

Yes. The inventory is ready for customers to purchase while the inventory moves through Amazon FCs. The units will be listed as "reserved" condition. To confirm the status, look up the Reserved Inventory Report. This Service Level Agreement (SLA) for the placement of inventory between Amazon FC's lasts 4-7 days.

What is the Return Policy for inventory? Where is the Customer return delivered?

All returns from Customers will be shipped back to "point of invoice" and/or to the closest return consolidation center. The return of the customer is sent to Amazon FC's from the point where the order was invoiced and delivered or to the nearest return consolidation center when the Seller has selected to use the Return Consolidation program.

What's the Weight Handling Fee benefit for Sellers?

Sellers are not charged for placement of inventory from Receive Centres to other Amazon FC's. In addition, Sellers are charged only for the orders shipped out to Customers from the Fulfilment Centres with a flat Shipping Fee based on the weight slab of the product (not based on local/regional/national factors). The flat Shipping Fee is only applicable to orders that are fulfilled by Amazon FC's, not on orders shipped from Seller Flex.

For the IXD weight handling fee cards for items that are small or standard Go to Fulfilment Fees.

For more information on product size and outbound shipping unit weight calculation, please go to FBA Calculator.

Do you consider the weight for each product or boxes?

This fee will be calculated for shipments that are ordered by customers from Amazon's Fulfilment Center. Amazon Fulfilment Centre using the combined Cost of Handling. The weight of the individual items is considered in this fee.

What is the procedure for removing items? Are excess inventory disposed of at the Receive Centres, or should Sellers take inventory from their own Amazon Fulfilment Centers?

Sellers are required to make removals from Amazon FCs in which their stock is available.

Who pays for the costs of damage caused to goods in transit when they are transported between an Amazon Fulfilment Centre to another?

Since all inventory placements across Amazon's Receive Centres and the final destination Amazon Fulfilment Centres will be handled through Amazon, Amazon will take the responsibility for any damages in transit to goods in accordance with the FBA-FC Damaged Inventory Reimbursement Policy. Any damages that occur during transit are classified under "Carrier Damaged" and the current Amazon policy on reimbursement will be applied.

Conclusion - Amazon's Inventory Placement Program (IXD) offers a valuable set of tools and benefits for sellers looking to streamline their operations and save on costs. By simplifying the shipping process, optimizing appointments, and providing cost-effective solutions, IXD empowers sellers to focus on growing their businesses rather than managing logistics.

As we've explored in this guide, enrolling in the program involves meeting specific criteria, including APOB and GST registrations. Once enrolled, sellers can take advantage of the program's benefits, such as reduced transportation expenses, efficient inventory management, and simplified appointment scheduling.

Whether you're a seasoned seller or just starting out on your e-commerce journey, Amazon's IXD program can make a significant difference in your overall profitability and operational efficiency. So, consider exploring the program, meeting the requirements, and embracing the advantages it offers to take your Amazon business to the next level. By leveraging the IXD program, you can enhance your seller experience and provide an even better shopping experience for Amazon customers.

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