Sellers who are interested in potentially reduced fulfillment costs, the Amazon FBA Small and Light program may be for you. This program allows sellers to enroll and benefit from better rates, if they frequently sell small or lightweight items that qualify. Only products in new condition that measure 16 x 9 x 4 inches or less, weigh 10 oz or less, and are priced at $7 or less are eligible for Small and Light.
What are the benefits?
Amazon clearly lays out the benefits for those interested, which fall in line with many other FBA perks.
- Free shipping for Prime customers. Small and Light offers FREE 3-5 business day shipping for Prime customers and access to millions of active Amazon shoppers. Program products for non-Prime customers receive free shipping (6 to 8 business days).
- Reduced fulfillment costs. By selling through Small and Light, you can improve your margins or pass more savings along to customers.
- Instant customer trust. With FBA programs, Amazon’s A-to-z Guarantee puts your customers at ease. They know and trust us, and that trust extends to you.
- Access to global markets. With Small and Light, sellers can expand their reach to international markets, such as the UK, Germany, and Japan.
- The program utilizes the postal service to achieve the reduced delivery costs. The size constraints of the package correlates with what can fit in a mailbox.
What products are eligible?
In general, products must be less than 16 x 9 x 4 inches in size, weigh 10 ounces or less, and be less than $7. Example products are sunglasses, novelty jewelry, small electronics like headphones, kitchen accessories and easily prepped products like socks. The following products are restricted from the program:
- Restricted products
- FBA Prohibited Products
- Adult products
- Dangerous goods (hazmat)
- Temperature-sensitive products (such as chocolates). Amazon notes “crushable” products, such as chips are eligible, if properly packaged.
- Products with existing FBA offers that use manufacturer barcodes for tracking instead of Amazon barcodes
- Slow-moving products (ASINs offered on Amazon for more than 90 days that have sold fewer than 25 units in the last four weeks).
Who will benefit from the program?
Amazon supplies a full enrollment guide with step-by-step instructions. There is also a detailed breakdown of costs in Seller Central. In general, the order handling fee is $0.80 per order, for items priced less than or equal to $5.00 or $1.00 per order, for items priced greater than $5.00 and less than or equal to $7.00. The pick and pack fee is charged at $0.75 per unit. And the weight handling fee is $0.11 per oz. These fees can vary slightly in certain cases. It’s important you accurately look at your items and costs to calculate if the program is more beneficial to you than regular FBA. Sellers who sell items that are bought in large quantities through single orders will see the most benefit and lower margin. Also, note that Small and Light orders are likely to see slower delivery times, so sellers should weigh the potential trade-offs of lower costs carefully.
Find out more
Interested sellers can find more information and sign up here. Existing sellers with a Seller Central account can visit the topic more in-depth in the Seller Central Small and Light help pages. As always, eCommerce Nurse can provide full account audits for your specific business and maximize your selling potential. Please contact us for more information.
(Image courtesy of Amazon)