We do this for shipping from the UK to the USA to remove placement fees for sellers! From a prep centre’s perspective, if you’ve got the system in place and it helps improve the seller’s margin, I think it should be done. The prep centre doesn’t benefit directly, obviously, but helping reduce the seller’s costs is key.
Yes, switching to Amazon’s Recommended Packaging Method (often referred to as Distributed Inventory Placement) can indeed improve delivery speed and Buy Box performance by distributing inventory closer to customers, which enhances Prime eligibility and shipping times. Sellers who have made the switch have reported better sales velocity and more consistent Buy Box ownership, especially for fast-moving items. However, the trade-off is increased complexity during prep and shipping, since you’ll need to create and manage multiple pack groups, and possibly deal with higher total shipping costs. It tends to be most worthwhile for products with strong demand and a competitive edge on delivery speed.
