Selling products on Amazon can be a lucrative business venture, but high fees and shipping costs often eat into sellers' profits. However, Amazon offers a solution to this predicament with its FBA (Fulfillment by Amazon) Small and Light Program. This program allows sellers to send small, lightweight items to Amazon's fulfillment centers at reduced fees, enabling them to sell products under $12 and still turn a profit. In this article, we will delve into the details of the Amazon FBA Small and Light Program, discuss the enrollment process, and highlight the qualifications required to take full advantage of this cost-saving opportunity.
The FBA Small and Light Program is specifically designed for products that are both small and light. To qualify for this program, the items must weigh no more than 16 ounces (48 ounces) and have dimensions smaller than 18 x 14 x 8 inches. The objective is to help sellers reduce costs by streamlining the fulfillment process for low-cost, compact items.
Amazon Seller Central: Access your seller account on Amazon Seller Central. If you don't have an account, create one by following the below instructions.
Product Eligibility: Ensure that the products you intend to sell meet the size and weight requirements mentioned above.
Set Up FBA: Once your products are eligible, enable FBA for your account. This will allow you to utilize Amazon's fulfillment network.
Opt for Small and Light: In your seller account, navigate to the "Settings" tab and select "Fulfillment by Amazon." Locate the "Small and Light" option and choose "Enroll." You can also search for “small and light program” in the search field at the center of every page.
Product Selection: After enrollment, you can choose the specific products you wish to include in the program. Select products that meet the qualifications and can be profitably sold for under $12.
You may also use a quick enroll tool to list all of the items by model number (up to 100 ASINS) and with a few mouse clicks enroll them all. The SAL fee structure is generally changed within 1 minute to a few hours. You can also quickly disenroll products using a similar feature on the next tab
Reduced Fees: By participating in the Small and Light Program, sellers can benefit from significantly reduced FBA fees compared to standard rates. This reduction allows for better profit margins, particularly for low-cost products. Generally, the FBA fee portion of the seller fees will be at least $.75 less per transaction.
Improved Visibility: Amazon often gives priority to products enrolled in the Small and Light Program by providing special filters and badges, making them more noticeable to customers. This increased visibility can boost sales and drive customer engagement.
Prime Eligibility: By utilizing the FBA program, sellers can make their Small and Light items eligible for Prime two-day shipping. This not only improves customer satisfaction but also increases the likelihood of sales.
Streamlined Logistics: With FBA, sellers can leverage Amazon's vast fulfillment network, enabling hassle-free storage, packaging, and shipping of products. This eliminates the need for self-fulfillment, saving time and effort.
Low Manufacturing Costs: Given the reduced fees associated with the Small and Light Program, it's important to source products with low manufacturing costs. Items with a first cost under $3 would be ideal to leave ample room for profit.
Small and Light Attributes: Focus on products that are naturally small and lightweight, as these are the most suitable for the program. Be mindful of the size and weight restrictions to maximize cost savings.
Package Size: Get the product package as tight and small as possible. Don’t use large cartons, hangtags, or zip bags that have a lot of empty air/space left. Amazon will calculate or measure this wasted packaging as part of the item dimensions and charge you more in FBA fees.
Price: Just because $12 is the maximum price allowed in the program doesn’t mean you should try and make every last penny. You might find that you can sacrifice the difference in price because something sellers better at the “magic price point” of $9.99 versus $11.99, additionally your referral fee will also be less because its calculated solely on the selling price. The combination of higher sales volume from hitting the magic number and a lesser referral fee might make a large difference in sales and profits.
Ultimately, The Amazon FBA Small and Light Program is an excellent opportunity for sellers looking to boost profitability with low-cost, small, and lightweight items. By enrolling in this program, sellers can benefit from reduced fees, improved visibility, and streamlined logistics. As long as the products meet the size and weight requirements and are manufactured at low costs, the program offers a cost-effective way to sell items under $12 and still generate profits. Embrace the potential of the Amazon FBA Small and Light Program to enhance your success as an Amazon seller.
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For More Amazon Tips and tricks, please search our other valuable articles about Selling On Amazon Seller Central FBA, Vendor Central, and KDP, or contact an expert Amazon consultant.