Any seller trying to get the most bang for their buck will certainly attempt to find the cheapest fulfillment method.
In a previous article, we have discussed how Fulfillment by Amazon (FBA) works. Here, we look at its smaller and lighter sibling.
What’s FBA Small and Light?
FBA Small and Light is Amazon’s fulfillment option for products that cost below $7, weighs under 10 ounces and is small enough to fit a 16x9x4 inch package.
The Small and Light program has its own sets of rules, fees, and guides. Continue reading to see if this fulfillment option fits your needs.
How Does the Small and Light Differ from FBA?
The key differences between the two programs are their price offerings and the package sizes.
Standard Amazon FBA starts the pricing at $2.50 per fulfillment while the Small and Light program begins pricing at $1.97.
The program saves you at least $0.53 on purchases under 4 ounces and $0.11 on items that weigh between 5 and 10 ounces. That’s up to 23.7% difference in fulfillment fees.
Small and Light’s price savings might seem negligible on the surface, but that ramps up quickly as your sales volume naturally increases.
FBA Small and Light Pricing
Small and Light keeps the prices simple, that is, assuming you have followed procedures and you don’t incur any penalties.
Pricing for Small and Light is tiered into two based on weight.
The first tier being items that weigh under 4oz which cost $1.97 to fulfill, and the second tier of items that weigh between 4 and 10 ounces which cost $2.39 to fulfill.
Make sure that the item(s) to be fulfilled fits a package size of 16x9x4 inches or less, otherwise standard FBA fees will be used in place.
Other Fees for Small and Light
Amazon Seller Fees
As with all sellers, subscribed to FBA or not, you have to pay your dues with Amazon. When calculating profit margins, make sure to factor in the seller fees and not just the FBA fee.
This is often called referral fees. All other fees for either individual or professional plans still apply.
FBA Labeling Fees
For some businesses, the task of labeling every item may seem too laborious or demand too many man-hours.
Having Amazon label and barcode your inventory may be more efficient in terms of cost or time.
Amazon charges $0.30 for every item that they label. Acquiring this service also saves you the expense of possible penalties and fines incurred from wrong labels, should you choose to do it yourself.
As labeling is an optional service, it is your responsibility as a seller to determine if the service is a cost-efficient method for your needs.
Customer Return Fees
Similar to the standard FBA program, customer returns can be costly. Apart from possibly incurring a returns processing fee, sellers also shoulder shipping charges.
The returns processing fee is usually equivalent to the original fulfillment fee.
FBA Removal Order Fees
Similar to the standard FBA, you can have your stocks removed from the warehoused inventory.
Since all of the items under the Small and Light program weigh under half a pound, stock removal or disposal is priced at $0.25 per item.
Which Products Are NOT Eligible for Small and Light?
Apart from the size and weight restrictions set for Small and Light, some products aren’t allowed in the fulfillment in the program.
Items classified by Amazon as “restricted” aren’t allowed to be fulfilled by the FBA service. A list of the items is available here.
There are also some FBA-specific restrictions that could apply for the Small and Light program; alcoholic beverages, gift cards/certificates, etc.
Products with unauthorized marketing materials, such as pamphlets, price tags, or other non-Amazon stickers are also prohibited in the program.
Amazon is also very strict when it comes to how the sellers package their goods. Any product that is not prepared in accordance with the FBA packaging and prep requirements will cause problems.
Needless to say, products that are considered illegal or have been illegally replicated or manufactured will be denied eligibility.
Small and Light Policy on Fulfillment Quantity
Amazon factors how long a product has been on its platform to determine its eligibility for the Small and Light fulfillment.
A minimum order is set by Amazon for the sellers to continue the service.
Products that have been on Amazon for more than 90 days and have sold less than 25 units in four weeks are disqualified from the Small and Light fulfillment.
How to Package for Small and Light
As mentioned earlier, Amazon enforces strict rules on how items are being packaged. To avoid incurring penalties and fines, sellers should oblige to the standards.
All shipments must contain a minimum of 24 units per stock item, they should also be bundled in a clear plastic bag and placed in a manufacturer’s pack.
Products and the bags should be properly labeled with a scannable Amazon barcode.
Mixing in different items in one shipping box is acceptable, as long as the packaging standards for the bags are followed and the box should not be longer than 25 inches on any side and weighs under 50 pounds.
Can Consumables Be Fulfilled by Small and Light?
A lot of items eligible for Small and Light fall under the consumables category, this includes beauty products, groceries, and personal care items.
Most of the items mentioned are expiration-dated products. It is the responsibility of the seller to ensure that the products sent to Amazon have a shelf life of greater than 105 days from the date of receipt.
Be mindful of the expiries since Amazon will dispose of items that are within 50 days of expiration dates. There is no option for product returns and a penalty may be levied apart from your own losses.
Consumables that are temperature-sensitive like chocolates aren’t accepted on the Small and Light program. Have this in mind when preparing to send over food items to amazon.
Can Fragile Items Be Fulfilled by Small and Light?
Items that may break or be crushed in shipments usually pose problems for logistics providers. But, Amazon Small and Light allows for the transport of these goods, provided that they are properly packaged.
Is Amazon Small and Light Right for Your Needs?
Having orders handled by Amazon removes the majority of manpower required for fulfilling orders from your end. Shipping offers, like rates and delivery period, are more competitive for sellers that partner with Amazon’s fulfillment programs. Of course, FBA sellers tend to sell more products too.
And as with standard FBA, Amazon Small and Light also takes care of the customer service for you. This allows you to streamline your processes further without having to worry about fulfillment and customer service.
Wondering about whether Small and Light is for you? Let’s have a chat and find out.
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