Discover the most compelling benefits of Amazon’s FBA Small and Light program, designed to help mitigate the costs associated with fulfilling orders for small and lightweight inventory.By ITAugust 21, 2019
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On Amazon, we know that no two sellers’ catalogs are the same and there is no one-size-fits-all approach to product fulfillment. However, if you have a significant number of ASINs that are small, lightweight, and competitively priced, Amazon’s FBA Small and Light program may make sense for you to pursue.
FBA Small and Light Enrollment Guidelines
FBA Small and Light helps reduce the cost of fulfilling orders for small and lightweight FBA products priced under $7. Products included in the program are Prime-eligible with standard shipping for Prime customers (three to five business days) and free shipping for non-Prime customers (six to eight business days). Products that are eligible for the program include those that are:
10 ounces or less
16 x 9 x 4 inches or less
$7 or less
Fast-moving ASINs
Products that are not eligible for FBA Small and Light include restricted products, FBA prohibited products, adult products, dangerous and hazmat goods, temperature-sensitive products (such as chocolates), products with existing FBA offers that use manufacturer barcodes for tracking instead of Amazon barcodes, and slow-moving ASINs.
To enroll in FBA Small and Light, you should follow the steps outlined below.
1. Sell on Amazon and choose FBA as your fulfillment method.
2. Select products. Create new offers for your products or enroll existing SKUs in the FBA Small and Light program. You can enroll a self-fulfilled ASIN, an FBA ASIN, or a new to Amazon ASIN in the program. Only products with sales of 25 units or more in the trailing four week period are eligible for participation.
4. Ship your products to Amazon. You are required to prepare and ship your FBA Small and Light products to a specific Amazon fulfillment center. A minimum quantity of 24 units per product is required.
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Key Benefits of FBA Small and Light
FBA Small and Light grants you reduced fulfillment costs on eligible items, which then allows you to apply those savings to other business objectives and increase your bottom line. The main benefits of the program include:
Lower fulfillment costs. You can improve your margins or pass more savings along to customers.
Free shipping for Prime members. With FBA Small and Light, receive free three- to five-day shipping for Prime shoppers and receive access to Amazon’s highly loyal consumer base.
Increased credibility. Customers know and trust Amazon and, with FBA Small and Light, you are an extension of that trusted partnership.
Just like with standard FBA, fulfillment and returns are handled by Amazon.
You can fulfill the same product through FBA Small and Light and standard FBA fulfillment, if you desire.
Outside of the U.S., FBA Small and Light is available in the U.K., Germany, and Japan, so it is an optimal program to test new international markets and increase discovery and exposure to your Amazon catalog.
Fulfillment Fees for FBA Small and Light
FBA Small and Light comes with its own set of prep and packing requirements and uses specific fulfillment centers. As mentioned earlier, a minimum of 24 units per ASIN must be sent in each shipment. Except for the fees outlined in the chart below, all standard Amazon fees and FBA fees apply to FBA Small and Light SKUs.
The minimum long-term storage fees for Small and Light items is $0.25 per unit for units that have been in U.S. fulfillment centers for 181 to 365 days. Units in U.S. fulfillment centers for longer than 365 days will receive a long-term storage fee of $0.50 per unit.
Final Thoughts
Amazon’s traditional FBA fees are not always optimal for merchants selling products below a certain price point because there is an associated risk of the FBA fees eating into your profit margins. With FBA Small and Light, you receive lower FBA fees for more compact items, giving you additional flexibility to protect and preserve your profits, increase product discovery with competitive pricing, and more effectively manage your inventory.
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