The multiple fees associated with the fulfillment by Amazon (FBA) program has often been regarded as an obstacle to selling small and cheap items. FBA has allowed sellers across the world to scale their Amazon businesses at an unprecedented rate. However, for smaller products, the added fees meant lower margins. This is why many sellers stayed away from selling products under $10.
Amazon now has a solution to that problem. With the small and light program, you can maintain profitability while selling products priced at or below $7. What is the program and how can you sign up? Let’s take a look.
Generally, Amazon’s fulfillment fee for FBA products starts from $2.50 and varies depending on the product’s volume, size, and category. If you’re selling a cheap product, $2.50 is a very steep price to pay as a fulfillment fee.
If you are selling a product that costs $7 or under, you can use the FBA service at a lower fulfillment fee if you meet the following criteria:
Dimensions: 16 x 9 x 4 inches or fewer
Volume: Less than 10 oz
Condition: The product must be new
The ASIN must be listed on Amazon for 90 or more days, and it must have sold 25 or more units in the last 4 weeks.
Barcode: The product should be labeled with an Amazon barcode and not the manufacturer barcode.
Additionally, the following categories and types of products are not eligible for Amazon FBA small and light.
So, how do you find the best products to sell using the program? Finding the right product and the right supplier is just as important for smaller and cheaper products.
Since you are dealing with tighter margins, sourcing is all the more important. To make product sourcing easy and effective, you can use SellerApp’s product sourcing tool, developed in partnership with Alibaba.
Additionally, you can use the FBA calculator to find exactly how much money you’ll have to pay as FBA fees.
The program is created to encourage sellers to list fast-moving and light products. You pay a lower fulfillment fee while getting the major benefits of Amazon FBA.
Additional read: Amazon Profit Margin: All that Finally Matters.
Let’s get down to the most important part of the small and light program – the lower fulfillment fee. These are the fulfillment fees for Amazon FBA small and light in the United States and the United Kingdom.
|United States||16x9x4 inches or less||4 oz. or less||$1.97|
|United States||16x9x4 inches or less||4+ oz. to < 10 oz.||$2.39|
|UK||23x15.5x0.4 cm or less (small letter)||92 g or less||£0.60|
|225 g or less||£0.80|
It is abundantly clear that Amazon FBA small and light is great for your bottom line. Plus, it helps you reach a much wider audience and come with all the benefits of FBA. Also, keep in mind that only the fulfillment fees are lower, all other FBA fees remain the same with small and light.
What are the various FBA fees that you’ll have to pay? Check out this detailed video to learn all about the various fees associated with the program.
Now that you’re up to speed with how the program works, let’s take a look at how you can enroll for Amazon FBA small and light.
That’s it! You’re all done and ready to sell on Amazon.
Amazon FBA small and light is a great way to make money selling cheap, small, and light products on Amazon. The lower fulfillment fee might look negligible at first, but when you have a product selling like hotcakes, it adds up.
Of course, a lot depends on finding the right product. Even after finding the perfect product, you need to create a kickass listing and optimized PPC campaigns.
Need help managing your PPC campaigns? SellerApp has you covered with our expert PPC management services. We combine the best of machine learning technology and PPC expertise to deliver optimal advertising outcomes every single time.