FBA Small and Light Lowers Fulfillment Fees to Boost Your Profits

What is it?

Amazon FBA Small and Light is a low-priced fulfillment program offered to its vendors who sell cheaper small-sized products. It’s an option sellers can choose, if they’re eligible, to optimize their shipping and packaging costs. Fulfillment is always one of the largest challenges this type of vendor faces. They often feel like they’re paying too much in shipping costs for the size and weight being shipped. This, in which, is cutting into their sales profits.

I highly recommend you take in the following information and take the simple steps to enhance your business through FBA Small and Light. You’ll see how you can benefit from this solution in many ways.

Let’s get the strict eligibility guidelines out of the way early so you know if you even qualify. After, we dive further into the benefits of using FBA Small and Light.

Who is it for and what are the requirements?

Although the traditional FBA is beneficial and streamlined, it can still be too expensive for small and cheaper products. That’s why the Small and Light option is available. It’s intended for FBA vendors who sell permitted products that are a maximum of:

  • $7 per unit
  • 16” x 9” x 4” dimensions
  • 10 oz (377.99 gram) weight

Eligibility and Requirements

To qualify for FBA Small and Light, you must obtain the following qualifications:

  • As a vendor, you must have sold 10 or more product units in the last 4 weeks. Or you must plan on selling 10 or more product units that were listed under 90 days ago.
  • The products being fulfilled must not react to changes in temperature. Example: Mayonnaise packets could not be sold because warm temperatures make it toxic.
  • Products sold must be new, not used.
  • Amazon barcodes have to be attached to products, not the manufacturer’s barcodes.

Hazardous items are not allowed. These other categories and items are prohibited:

If you’re still here after reading the eligibility requirements, that probably means your product passed. So here is why you need FBA Small and Light.

How your Ecommerce Business will Benefit

1. Increase profit margins through decreasing fulfillment fees.

I will further explain the lower FBA fees below, as it varies depending on weight. But the lower costs of production this solution offers, the higher the margin you can earn.

2. Your Prime customers get free shipping.

Amazon's promotion of 3 to 5-day shipping gives you another sales tactic for your business. Making Prime shipping available, it boosts product visibility on Amazon’s marketplace which will increase sales.

3. You have the ability to sell internationally.

Amazon is in high demand world-wide. Sellers are not reaching their potential if they limit their market to one country. With FBA Small and Light, you can sell outside the United States to the United Kingdom, Germany, France, Italy, Spain, and Japan.

4. Gain more loyalty and trust from customers.

Your sales are covered under Amazon’s A-to-Z guarantee, which reassures your customers that delivery will be timely, refunds may be eligible, and more. This helps build your business’s credibility.

5. It enables you to compete more aggressively.

The lower FBA fees give vendors more leeway on the price they list their products as. When fees are high, you are basically stuck to a set listing price because you don’t have a choice. When you have more pricing flexibility, you’re able to compete greatly in the market and fluctuate pricing depending on product demand.

Being flexible through paying lower fees, you have the chance to win more sales against competitors. To maximize your selling potential with the benefits FBA Small and Light offers, I recommend you utilize Aura repricing software. Aura will measure market data and automatically adjust the prices of your product listings to earn more revenue than rival sellers.

Steps to Enrolling in the FBA Small and Light program

1. Sign up to FBA (Fulfillment by Amazon, $39.99 per month).

Whether you currently sell using self-fulfillment or are just beginning, you need your Seller Central login to begin enrolling.

2. Choose the items you want for FBA Small and Light.

You can easily change the existing product offer and it is possible to sell through different Amazon channels. For example, if you sell earrings and shoes, you’re able to sell the shoes through regular FBA. Then you may sell the earrings through Small and Light.

3. Submit FBA Small and Light offers to Amazon for approval.

Here is an easy step-by-step slideshow with pictures to show you exactly how to do this and how to enroll a new MSKU. MSKU (Merchant Stock Keeping Equipment) is a number assigned to each item sold.

4. Ship inventory to the Amazon Fulfillment Center.

How to Ship Inventory to an Amazon Warehouse:

  • Use their preparation and packing guide for details on shipping and packaging requirements.
  • You have to ship items to the specific warehouse that Amazon tells you.
  • You must send at least 24 product units per ASIN every shipment.

Now, you know how this program lowers fees, benefits you in many ways, and you know how to get started. So, I bet you’re really wondering how much the program lowers your fees. It’s quite cheap and you’ll surely want to hop on board.

FBA Small and Light Fees

Example:

Country Name

Item Size / Weight / Fulfillment Fee

United States

16 × 9 × 4 inches (10.16 cm) / 4 oz (0.15 kg) or less / $1.97

16 × 9 × 3 inches (ca. 8 cm) / 4 - 10 oz. / $2.39

United Kingdom

23 × 15.5 × .4 cm (Small) / 92 g or less / £0.60

30 × 22.4 × 2.4 cm (Large) / 225 g or less / £0.80

Italy

33 × 23 × 2.5 cm or less / 75 g or less / €1.70

33 × 23 × 2.5 cm or less / 225 g or less / €1.85

Germany

21.5 × 10.5 × .6 cm (Small) / 42 g or less / €0.80

33.5 × 23 × 2.8 cm (Large) / 225 g or less / €1.05

33.5 × 23 × 4.6 cm (XL) / 225 g or less / €1.40

France

33.4 × 23.4 × 2.5 cm or less / 69 g or less / €1.60

33.4 × 23.4 × 2.5 cm or less / 70 - 219 g / €1.90

Spain

33 × 23 × 2.5 cm or less / 69 g or less / €1.35

33 × 23 × 2.5 cm or less / 70 - 219 g / €1.90

  • Japan

35 × 30 × 3.3 cm or less / 950 g or less / ¥198

As you can see, the fees are low regardless of the country you are shipping to. If you’re enrolled to FBA Small and Light, you will save $.25-.53 per shipment in the United States. These savings quickly accumulate and it won’t be hard to notice a great increase in profit margins or revenues.

Know that when you save money your customer saves money too. That’s how to retain customers and build your e-commerce business. If your products fit the description, enrolling in FBA Small and Light is worth it.

FBA Small and Light Lowers Fulfillment Fees to Boost Your Profits
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