By SnappyCrate | Updated August 2025

Amazon’s Inventory Placement Service (IPS) allows sellers to ship all inventory to one FC, and Amazon redistributes it internally. Sounds great—but it’s not always the best option.

👍 When IPS Makes Sense

• Small, lightweight SKUs where redistribution cost is minimal.

• Sellers with limited logistics teams who want simplicity.

• New sellers unfamiliar with multi-FC routing.

👎 When IPS Costs Too Much

• Heavy/bulky products → redistribution fees skyrocket.

• Fast-moving SKUs → extra transfer time slows replenishment.

• Large shipments → more cost-effective to route correctly at the start.

✅ SnappyCrate’s Alternative

• Multi-FC routing to ship direct to Amazon’s assigned centers.

• Cross-docking & carton forwarding for faster placement.

• Hybrid strategies (IPS for small SKUs, direct routing for large).

Bottom Line: IPS is convenient—but not cheap. SnappyCrate helps sellers know when it’s worth it and when to skip it.