Businesses worldwide have benefited from Amazon’s Fulfillment Program, which has made goods shipping easier. The FBA program is centered on Amazon shipping, and it allows sellers to join the program and gain perks such as easier selling and faster Prime delivery.
This service is usually faster than non-Prime shipping, and it also provides you an advantage when selling on Amazon because you’re visible to Prime subscribers.
Amazon introduced the FBA Small and Light program as part of its service. We realize that no two sellers’ catalogs are the same on Amazon and that product delivery is not a one-size-fits-all solution. However, if you have a huge number of ASINs that are small, lightweight, and reasonably priced, Amazon’s FBA Small and Light program could be worth it.
This article will go through the many benefits of the Amazon Small and Light Program in 2021 for your business.
What is the Amazon Small and Light Program?
Amazon’s fulfillment charge for FBA items starts at $2.50 and fluctuates based on the product’s volume, size, and category. If you’re selling a low-cost item, $2.50 is an excessive fulfillment fee to pay.
Provided you sell $7 or fewer goods, you can use the FBA service for a reduced fulfillment price if you complete the following requirements:
- 16 x 9 x 4 inches (or less) is the minimum size.
- Ten oz. or less
- The product must be in new condition.
- The ASIN must have been listed on Amazon for 90 days or more, and 25 or more copies must have been sold in the previous four weeks.
- The Amazon barcode, not the manufacturer’s barcode, should be printed on the product.
Of course, some products are not eligible for Amazon Small and Light Program, such as fragile items. They are acceptable only if properly packed. However, the product types below are not allowed:
- Products that are restricted
- Products that FBA forbids
- Adult-oriented items
- Hazardous goods (hazmat)
- Products that are temperature sensitive (such as chocolates)
- Products that are slow to move. ASINs offered on Amazon for more than 90 days that have sold fewer than 25 units in the last four weeks.
Smaller and less expensive items require just as much attention to finding the correct product and source. Because you’re working with narrower margins, sourcing is much more crucial. You may utilize SellerApp’s product sourcing tool, created with Alibaba, to make product sourcing efficient and straightforward.
You may also use the FBA calculator to determine how much money you’ll have to pay in FBA fees.
Benefits of Amazon Small and Light Program in 2021
The main advantage of Amazon Small and Light, as we said before, is that it lowers your order fulfillment expenses. That’s a significant benefit, but it has lots of advantages for your business.
As you can understand, the main benefit of enrolling your products in Small and Light is that you’ll pay considerably cheaper fulfillment charges.
Reduced Shipping Costs
Reduced fulfillment costs on qualifying goods are available through FBA Small and Light, allowing you to use those savings toward other business goals and drive growth. As a result, you may increase your profit margins or pass on additional protection to your consumers. It’s a win-win situation in any case.
Free Shipping for Prime Members
Free Prime delivery is available on small and light items purchased through the small and lightweight program (within 3-5 business days). But there’s an important point here, instead of the 2-day promise, Prime users will get free delivery in 3 to 5 business days, so that “advantage” may end up hurting more than helping. Customers who are non-prime membership will also receive free shipping within 6-8 business days. Being available for Prime will significantly increase the visibility of your items. Customers will also not be required to make a minimum purchase of $25 to receive free delivery. More sales and profits are generally the result of this.
No Requirement for a Minimum Purchase
Customers will not be required to meet any minimum purchase requirements, which is another benefit. However, free delivery is only available if you purchase $25 or more of qualifying products through Amazon’s standard FBA program.
Customers may now buy your small and light items independently rather than as add-ons or afterthoughts because Amazon has discontinued the terrible add-on item option.
Under FBA, you can give out free discounts. For example, some small goods priced at $5 or less that come within the Consumables category, such as beauty, health & personal care, groceries, and baby, excluding Apparel, are eligible for a 5% discount if the client purchases two or more units under FBA Small and Light.
You do not need to take any action, and Amazon will cover the cost of the discount. To put it another way, you will be able to provide discounts without incurring any fees.
Fulfillment through MCF
FBA’s Multi-Channel Fulfillment (MCF), a recent upgrade, is now available for Small and Light.
You won’t have to transport your items from anywhere else if you sell them on Walmart, Shopify, or other marketplaces. Keep track of the associated costs.
Amazon’s A-to-Z Guarantee
There are some benefits to becoming a part of the FBA program. One of them is Amazon’s A-Z guarantee option. Customers have trust in Amazon FBA, and you will become an extension of that valued collaboration, thanks to the FBA Small and Light Program.
While you focus on your business, Amazon’s world-class staff will handle customer service and refunds just as with standard FBA.
- The status of a premium product might help you reach more people and increase sales.
- Amazon handles the delivery once you’ve delivered your items to a fulfillment processing facility.
- If you sell many products in a month, you may save a lot of money on mail.
- With two membership types to select from, individual and professional, you can choose the suitable membership for you.
- Costs of fulfillment are significantly reduced.
- Your sales may increase as a result of the premier badge.
- There is no requirement for a minimum order.
- You can provide some items for free as part of a campaign.
- Small and light businesses may now take advantage of multi-channel fulfillment.
- The A-Z Guarantee has the potential to increase consumer trust.
Selling cheap, small, and light items on Amazon FBA is an excellent method to generate money. The reduced fulfillment cost may appear minor at first, but it adds up quickly when you have a popular product.
Finding the right product, of course, is crucial. But even once you’ve found the ideal product, you’ll need to develop a knockout listing and PPC ads to maximize your profits.
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