Did you know that Amazon offers hidden opportunities in selling smaller-sized products through the Amazon Small and Light Program? The Small and Light program allows sellers to maximize their profit margins on well-selling and lower-cost items.
Most Amazon sellers tend to avoid selling smaller-sized products whose margins can be quickly eaten up by the many Amazon FBA fulfillment fees. On June 1st, 2021, Amazon made adjustments to the Small and Light fulfillment fee schedule, but the program can still be worth it for those sellers with high volume, smaller-sized products.
This article will outline the benefits of the Amazon Small and Light Program, as well as the recently updated fees, so you can maximize your returns and boost your investment.
What is the Amazon Small and Light Program?
In a nutshell, the Amazon Small and Light Program is precisely as mentioned above. A program designed to alleviate the seemingly hefty fees associated with selling smaller items $7 or under. Generally speaking, these products are considered higher volume and cheaper.
To view the detailed list of requirements, visit this Amazon Seller Central, but here are the main conditions to participate:
- Must weigh 10oz or less
- Must be priced $7 or under
- Must meet the 16 x 9 x 4 Inch size guidelines
- Must not fall under a restricted or prohibited product or category
- Must be in new condition only
- Must be labeled with Amazon bar codes only
- Must meet a specific threshold of sales velocity for ASINS within the last 90 days (25 or more units within the previous 4 weeks)
What are the Benefits of the Small and Light Program?
The Amazon Small and Light Program’s most significant and apparent benefit is the cost savings sellers can achieve on fulfillment fees.
Other benefits include:
- The program is available in most marketplaces, including the USA, Spain, France, Germany, and Japan
- Products have no minimum order quantity
- Products are made Prime eligible
- Products are covered under Amazon’s A-Z guarantee
- Bonus discount of 5% on all orders of multiple products, $5 or under
While the benefits of the program are significant, the requirements to participate are pretty stringent. If your products are not high in sales volume, you will likely not qualify. Ensure that you have carefully reviewed the Amazon Small and Light requirements before enrollment.
What are the Amazon Small and Light Fees?
As of June 1st, 2021, Amazon made updates to the Small and Light fulfillment fee schedule. For a small standard size product with a weight of 6oz or less, the fees start at $2.16. For a large standard size product with a weight of 6oz or less, the fees are $2.35.
Here is the current Small and Light Fee schedule for the USA marketplace:
How Can you Enroll in the Amazon Small and Light Program?
If you’ve decided the Amazon Small and Light program can benefit you, enrolling can be completed in a few simple steps:
Step 1 – Be sure you are enrolled in the fulfillment by Amazon program.
Step 2 – Enroll your SKUs in the Small and Light program. ASINs with sales of 25 units or more in the last four weeks will qualify.
Step 3 – Download the enrollment template. Copy and paste your MSKUs into the yellow upload tab. Be sure to remove extra spaces before and after your MSKUs to avoid any upload errors.
Step 4 – Save the upload tab as a text tab and upload the document to Seller Central.
Step 5 – Monitor your upload status by hitting refresh, and be sure to review the processing report for errors.
Step 6 – Create inbound shipments for the SKUs that are successfully enrolled into the program. Prep and ship your items to the right fulfillment center. Amazon recommends that you send enough FBA inventory to sustain 60 days of sales.
Leverage your Product Packaging for the Amazon Small and Light Program
A smaller product does not have to leave you in the lurch in terms of profit, but the packaging you choose to house your product can certainly impact your bottom if not careful. You may need to do more research to discover your products’ best price points and carefully consider packaging to lower your overall fulfillment fees.
Learn about Amazon’s Packaging Requirements – Before you begin your product packaging design, it’s a good idea to learn about Amazon’s packaging requirements. Certain goods require specific types of packaging that must meet Amazon’s requirements. Failure to meet these requirements can mean your products become unsellable. For example, polybagged items must meet specific size criteria and have a suffocation warning clearly labeled on the bag. See this article for a complete overview of Amazon’s Packaging Requirements.
Hang Tags & Poly Bags – To suit smaller size products, opt for hang tags combined with the required polybags if need be. Hangtags can house all of your essential product information, as well as your FNSKU, which is necessary to sell your product on the marketplace. Be sure that the hangtag is legible and clear to read.
Custom Box Sizes – Unnecessarily large boxes and packaging materials can affect your bottom line. The reality is customers are becoming more aware of packaging that is harmful to our environment. Work with your manufacturer to use best-fit boxes for your smaller-sized products. If your supplier cannot provide a variety of options, you can always outsource your packaging independently of your manufacturer.
Product Research & Sourcing Tips for Smaller Products
Product research and sourcing are everything to your Amazon FBA business. Without these two critical components, finding a smaller, well-selling product can become challenging.
There are many methods to discovering well-selling products on Amazon. Aside from the routine software methods, you can always visit social sites to discover smaller and unique products.
- Etsy
If finding a smaller product is not your forte, you can always hire a product finder or a sourcing specialist. While there may be increased costs associated with outsourcing product selection and sourcing, you’ll need to evaluate the short and long-term pros and cons before you make a decision.
Be willing to think outside the box and be open-minded. Often new sellers get hung up on products they are personally and emotionally invested in. Avoid this trap to find the best smaller-sized products where opportunity exists to dominate the market.
Amazon FBA Reimbursements and Small Sized Packaging
In addition to the benefits of the Amazon Small and Light program, GETIDA’s Amazon FBA reimbursement solution can help sellers like you recover funds owed to them by Amazon regardless of the size and weight of your products.
Download some of our free tools to help you understand the weight and dimensions of your products alongside our free profit and loss tracker so you can have a complete understanding of your numbers and margins.
Just remember that GETIDA’s Amazon FBA Reimbursement solution can help you recover the maximum refund owed to you while you sell those smaller products that qualify for the Amazon Small and Light Program.
Final Thoughts
While Amazon FBA fee changes are bound to happen, it’s essential to look at the overall benefits of programs such as the Amazon Small and Light program.
Don’t be short-sighted in your willingness to participate in the Amazon Small and Light program so long as your products fit the requirements. You may be pleasantly surprised by the outcomes and the return on investment, and you may very well be selling a product for $7 or less and making your fortune in a very ‘small-sized,’ yet big way.
Are you enrolled in the Amazon Small and Light Program? Share your thoughts below.
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