If you have a long enough experience selling on Amazon, you know getting the competitive edge on shipping costs is wonderful. But getting an edge via FBA programs that your competitors aren’t taking advantage of, is way better.
The Amazon FBA small and light, for instance, is an excellent way to take a step ahead of your competitors and boost sales. So in this piece we’ll cover all there is to know about the FBA Small and Light and if it’s a great fit for you.
FBA Small and Light is an Amazon initiative that offers an opportunity for Amazon vendors with small and lightweight items to provide fast and free shipping, with the Prime badge right beside their listings.
The FBA Small and Light serves as a solution to the Amazon add-on item nightmare as well.
If you sell an item that is small and lightweight for $7 or lower, the FBA Small and Light program will allow you to gain higher margins than what you’d receive if you’re using the standard FBA program.
This is because Amazon seller central vendors, besides being able to provide fast and free shipping, enjoy increased profit margins gained from breaks on shipping when in the Small and Light program.
Plus, if you have been fulfilling orders yourself you can expect to see even higher profits after enrolling in the program, thanks to the cost-savings and efficiency that it offers.
You can also offer free shipping to customers in the United States who aren’t Prime members, using FBA Small and Light. And since your program appears as Prime eligible, your products become visible to Amazon’s most active and loyal customers (Prime members).
The FBA Small and Light program is available only to sellers and products that satisfy certain criteria and are approved by Amazon. Once you are eligible, you can submit ASINs you want to enroll in the program for approval.
To take part in this program you need to be currently enrolled in FBA without Premium Placement enabled. With that said, here are the specifications of products eligible for FBA Small and Light:
The packaging requirements for FBA Small and Light are similar to the standard FBA prep requirements, but there are some obvious differences:
The FBA Small and Light fees differ from the standard FBA fees, as your Small and Light margin improves for single orders with over 1 unit sold. So the program works a lot more for you; in terms of cost savings, if your brand sells small items in large quantities per individual order.
To get a clear picture of the improved margins and potential cost-savings you may experience with FBA Small and Light, here is a run-through of the standard FBA fees versus FBA Small and Light.
Source (Seller Central login required)
Right off the bat, it’s obvious that the FBA Small and Light fees can save brands significant cash. For instance, with parcels, the per-unit cost savings compared to the standard FBA fees could be up to $0.72, or up to $1.32 for flat packages.
Concerning the cost of self-fulfillment, you are even likely to see higher profit margins, not even taking into account the bonus of offering your customers free shipping.
Amazon FBA Small and Light initiative not only includes lower fees but the fees are structured in such a way that if the customer purchases more than one unit of your product in one order, the potential of monetary savings increases.
Here’s an example:
Source (Seller Central login required)
Keep in mind that certain Small and Light items that cost $5 or less and belong to the consumables section (Health & Personal Care, Baby (not apparel), Grocery, Beauty) are eligible for a 5% discount when a customer purchases 2 or more units of the same product. FBA will cover the discount costs.
This discount doesn’t affect what you’ll be paid for your products, and the discount will not show up on your payment reports. You need not do anything to receive the discounts.
There are occasions where you may notice discrepancies in the fees you expect to see in your account versus the actual FBA Small and Light fees your are charged. There are several reasons this may happen. Common reasons are because your you have submitted the incorrect dimensions or weight for your product. The difference could also be caused by an error in Amazon’s system. Regardless of the reason; if you do notice an FBA Small and Light fee error you should contact support immediately who will follow up with questions and investigate the issue.
If you’re able to prove that the fees are incorrect, Amazon will reimburse you. At Amazowl our operations team come across this issue a great deal when clients enroll in the program and make what seems like a small error i.e. lower weight of their product submitted – these small discrepancies quickly add up and impact your bottom line.
Before enrolling your items in FBA Small and Light ensure that they satisfy the required criteria as we’ve already seen. Once you’re certain that your products satisfy Amazon’s Small and Light program’s requirements you can begin enrollment.
Whether you’re a brand new seller or you’re already selling on Amazon as self-fulfilled, before enrolling in FBA Small and Light you must be enrolled in FBA.
If you intend to sell your items only through FBA Small and Light, you just need to modify your offer but if you want to sell your products via multiple means (self-fulfillment, FBA Small and Light as well as the standard FBA) then you must start a new offer.
Just follow the steps listed in Amazon’s FBA Small and Light enrollment guide to send in your offers for approval in the program.
Prep your inventory per FBA Small and Light prep requirements and then ship to Amazon’s Small and Light fulfillment center.
Regarding your inventory that’s currently in Amazon’s fulfillment centers, you cannot change them to FBA Small and Light. But here’s what you can do:
To make the most out of Amazon’s FBA Small and Light program here are a few tips you’d want to follow for success:
The fastest way to see your sales volumes plummet is by running out of stock. When this happens, most sellers rarely bounce back because their customers would have found replacements. Plus, sizable profit on the FBA Small and Light program is all about your sales volume.
Ensure you use a smart inventory system and the Seller Central Replenishment alerts to your full advantage to prevent running out of stock.
As with any other item you sell on Amazon, competitive pricing is necessary to get the highest sales volume possible and the FBA Small and Light program isn’t any different. So monitor your competitors and regularly evaluate your pricing to stay in the game.
Your product listings go a long way in keeping your products competitive. Adding exceptional item descriptions and images is an excellent start, but having a lot of product reviews can help potential customers make a confident purchase decision.
As of the 1st of May 2020, Amazon changed all products above $7 or 10oz to the standard FBA and subject to the standard FBA fees.
When a customer searches for applicable products the customer delivery promise will state “Free Delivery by (fulfillment date) for prime members”.
Before disenrolling your offers from FBA Small and Light ensure that you have no inventory in Small and Light. Once that’s confirmed, visit here to disenroll all offers.
Certain Small and Light items priced $5 or less and under the consumable category may be eligible for a 5% discount if your customer purchased 2 or more units of the same product. Amazon covers the cost of the discount and it won’t affect what you’re paid for the product. You need not do anything to be a part of the promotion.
Absolutely. You can have an FBA Small and Light offer, and a seller-fulfilled offer on the same item.
If you already have offers that use manufacturer barcodes for tracking then you must create a new seller fulfilled MSKU and enroll the new MSKU in FBA Small and Light. Immediately you’ve enrolled it, Amazon’s system will change your MSKU into a Small and Light offer.
Small and Light permits expiration-date products, however, temperature-sensitive products aren’t allowed. The Small and Light program adheres to the standard FBA qualifications for expiration-dated inventory.
Unfortunately no, Small and Light can only fulfill orders on Amazon.
You can remove your inventory by creating a removal order in Seller Central like you would for the regular FBA inventory. The removal and disposal fees are the same as the standard FBA removal fees.
Yes, if you’re a part of the Small and Light program, Amazon will provide both fulfillment and customer service for your orders, inclusive of customer returns. You can visit the FBA customer returns policy for more information on how FBA Small and Light handle refunds and reimbursements.
No, as Small and Light does not require a minimum purchase limit to offer free shipping.
If you’re an experienced seller on Amazon, you know that besides the various programs that assist you to get reviews like Amazon Request a Review Button, or programs like Amazon Influencer Program and Get Amazon Reviews, FBA Small and Light is amongst the most powerful tools that Sellers can take advantage of to boost profits.
Even more epic, Amazon offers quality discounts for certain Small and Light items priced at $5 or less that are under the consumables section. That said, is the FBA Small and Light program worth the hassle? Absolutely, with the numerous perks like having the prime badge on your listings and amplifying your Amazon SEO, it’s certainly worth it.
