How a Kitchen & Dining Brand Kept Over $500,000 of Its Inbound Spend in a Single Year

Kitchen & Dining · SplitSmart inbound

A Kitchen & Dining brand selling $3.5M a month on Amazon spent about $1.7M on placement fees and trucking in the year before SplitSmart, and about $1.1M on SplitSmart the year after.

Placement fees and trucking land on 2 different invoices, which is why the combined number is so easy to miss.

$1.7M a Year Was Going to Placement Fees and Trucking

In the year before SplitSmart, this brand paid about $1.7M between Amazon’s inbound placement fees and the trucking it took to get inventory to Amazon. At $3.5M a month in sales, neither line looks alarming on its own invoice, and together they were a 7-figure cost of simply getting product checked in.

An Optimized Shipment Is What Takes Placement Fees Off the Bill

Amazon doesn’t charge placement fees on an optimized shipment, and splitting inbound across 5+ Amazon destinations is what makes a shipment optimized. With SplitSmart, the brand sent inventory to a Tactical hub, and Tactical split it and delivered it to those destinations with its own drivers, on booked appointments with a live unload at every stop.

WATCH: See how brands run their shipments in the SplitSmart dashboard

Over $500,000 Stayed in the Business in 1 Year

The brand spent about $1.1M on SplitSmart against about $1.7M on placement fees and trucking the year before, which kept over $500,000 in the business in a single year. Both figures are actual spend from a completed year, and they cover the same 2 cost lines on both sides.

Your Own Number Is Already Sitting in 2 Invoices

You can size this for your own account in an afternoon. Add up what you paid in Amazon placement fees over the last 12 months, add the trucking it took to get that inventory to Amazon, and put the total next to your monthly Amazon revenue.