When a seller registers on the Amazon marketplace, they need to have an inbuilt inventory. Amazon launched the Seller Flex program for sellers to keep track of their inventory in their warehouse. It is an exclusive fulfillment program that enables better control over fulfillment.
In this article, let’s understand how the Amazon Seller Flex program works and everything you need to know about it.
- What is Amazon Seller Flex?
- Features of Amazon Seller Flex
- Who can apply for the Amazon Seller Flex program?
- How to apply for the Amazon Seller Flex program
- Requirements to Start Amazon Seller Flex
- Benefits of Seller Flex Program
- What are the issues with the Amazon Seller Flex program?
- Should you give it a try?
- Final thoughts
What is Amazon Seller Flex?
Amazon Seller Flex program was introduced for sellers to offer shipping benefits and better stock control. This is relatively a new program, so most sellers are still unaware of the Amazon Seller Flex service.
Amazon has been testing the service for quite some time. The service began in India, and Amazon has been marketing it in the US. The idea of this program is quite simple – Amazon collects products from 3P merchant warehouses and delivers them to the customers.
When it comes to the Seller Flex program, Amazon has the additional capacity to ensure that products are shipped to customers within the two-day window.
If you’re considering this program, you need to take it seriously. If not, it may have a negative impact on your business.
Features of Amazon Seller Flex
You need the following details for Amazon Seller Flex:
- An invite from Amazon marketplace
- To look into inventory management, packaging, shipping, and warehousing
- According to Amazon’s requirements, the seller needs to do business within specific locations
Who can apply for the Amazon Seller Flex program?
Unlike the other programs, Amazon Seller Flex Program is an invite-only program, so sellers cannot apply for it. Amazon sets a few criteria and strategies to invite the sellers who are eligible to join the program. Here are a few attributes considered by Amazon for the Seller Flex program:
- Monthly sales should be more than 0.6 million per month
- Amazon seller rating should be 90% or above
- Monthly sales units should be close to 1000 units
The above-mentioned are rough estimates of the criteria for getting an invitation. However, these attributes may change, and you can find more details from Amazon Flex managers.
How to apply for the Amazon Seller Flex program
If you think you are eligible for the Amazon Seller Flex program and still didn’t receive an invite, you can get in touch with Amazon’s team. You can do so by calling their customer care number or sending an email to the team.
Once you receive the invitation, you must file a form with your business details, fulfillment requirements, etc. Once it is done, you need to share the documents with Amazon, so they can verify them. After verification, you will get support from their team in helping you install the warehouse. You and your team will receive the necessary instructions and training about the functions and procedures from the Amazon team.
Requirements to Start Amazon Seller Flex
As per the Amazon guidelines, the amazon merchant or the warehouse owner will need to set up the requirements for the Seller Flex program. Seller will need to invest in the below-mentioned things and procedures to get approval.
- Two Laptops or Desktops with Windows 7 or above and a minimum of 2GB RAM.
- 2 bar code scanners
- Power Backup or UPS Inverter
- 2 Internet connections
- 3 Printers ( 1 for Shipping label printer, 1 for a Gift label printer, 1 for PDF Invoice File Printer)
- Packing Station Area
- Parking Area for Amazon Transport Vehicle
- Warehouse Manpower of the Seller (Minimum 6)
- Racks which are labeled, Bins to accommodate the products
- Amazon Prime Packing supplies (provided by Amazon)
Benefits of Seller Flex Program
The benefits of this program are ample:
- Since you get the FBA tag, the shoppers want to trust you more
- No goods are sent to Amazon. That implies low transportation costs.
- Better control over your inventory
- You don’t have to bring the non-moving items back from the FBA warehouse
- If you opt to sell in your location, buyers will get next-day or two-day delivery, which makes it more lucrative for them to buy your product
- You get extensive training by Amazon to effectively manage your inventory and account
Amazon Seller Flex program is beneficial for SMBs in accessing and serving customers on a global scale.
What are the issues with the Amazon Seller Flex program?
Sellers can get better control over their inventory. In addition, if you have thousands of SKUs, Flex gives more flexibility. However, the program requires a dedicated workforce to manage promotional peaks.
If you are a private label seller with a limited portfolio, Amazon Seller Flex may not be beneficial for you as you need more resources to manage.
The pricing of the product helps in estimating the profits. Before opting for this program, you need to check if it can save additional costs for you.
Should you give it a try?
Use the Seller Flex program as a way to check whether your logistics are operating smoothly. You need to understand Amazon standards in operations. Besides, you should be aware of the negative consequences of failing to act as per Amazon’s guidelines.
Amazon Seller Flex program gives you better control over inventory management. However, there are specific issues regarding cost management, packaging, and processing orders. So it’s best to learn more about the program or communicate with peers to get a better understanding of it.
Have you used the Seller Flex program from Amazon? Let us know about your experience in the comments section below.
Co-Founder At SellerApp
Senior IT executive with over 13 years of product development and global consulting experience in large-scale, complex systems and deep technology delivery and management.