If you’re considering becoming an Amazon FBA seller, then you should consider if Amazon Small and Light is right for you.
You likely already know how fulfillment by Amazon (FBA) works, and just how streamlined this fulfillment method can make your business on Amazon. However, this service is associated with fees that make it less practical for those selling lower-priced goods.
This is where the Amazon Small and Light program comes in with reduced fees for light, small, and inexpensive products. As a seller, these lower fees give you an increased margin for profit, or the option to price your items competitively, passing on savings to buyers.
Today, we’ll look at how the Amazon Small and Light program functions as well as how to be eligible for the savings it can provide.
How Amazon Small and Light Works
Amazon put together the FBA Small and Light program to allow sellers with particular product types to save on fulfillment costs. The products sold through this program must meet certain weight and dimension criteria, and be offered at a lower price point.
Without the Amazon Small and Light program, some lower-priced products would simply not be worth a seller’s while to stock. By decreasing fees for these items, Amazon ensures sellers can offer prices customers will love. This means everyone wins, Amazon, the consumers, and you as the seller.
Eligibility for Amazon Small and Light
Wondering if the products you want to sell would be a good fit for the Amazon Small and Light program.
First, check if they meet the following criteria:
- Price $10 or under
- Dimensions of 18x14x8 inches or less
- Weighing 3 lb or under
- New condition
However, aside from the criteria above, there are several product types that are not eligible for the Amazon Small and Light program:
- Adult products
- Dangerous items (hazmat)
- Restricted items
- Prohibited FBA products
- Items sensitive to temperature (think chocolate, etc)
Keep in mind that if you list a product in the Small and Light program with a price of $10 or less and then the price increases, this product will be immediately removed from the program.
In good news, somewhat fragile items including glass products as well as potato chips are permitted in the Amazon Small and Light program as long as they are in appropriate packaging.
Should the items you wish to sell fit the profile above, you can proceed with registration in the Amazon Small and Light program to begin saving on your fulfillment fees.
How Much can you Save on Fulfillment Fees?
Wondering how much cash you could save with the Amazon Small and Light program? The answer to this question can make all the difference if you are selling small and low-cost products.
Generally, your fulfillment fee and surcharges will have a 15%-29% discount when your item is part of the Small and Light program. For example, for a ‘small standard’ product with a weight of 6 to 12 ounces and dimensions of 15x12x0.75 inches (or less), you can expect to pay a $2.61 fulfillment fee and surcharge in the Small and Light program. However, in the standard FBA program, you would pay $3.22 in fees and surcharges, 19% more than in the Small and Light program.
Though the difference between these numbers may seem small for one item, this adds up to huge savings over repeated transactions. This increased margin can enhance your profits, or give you the chance to offer even better deals to customers.
Perks of Amazon Small and Light
As you’ve just seen, the potential for saving on fees makes Amazon Small and Light an appealing program. This is not the only benefit though, and this is worth keeping in mind as you decide if the program is right for you.
When you choose to enroll in Amazon Small and Light, you’ll still have access to several of the conveniences of using standard FBA services including:
- Customers do not need to make a minimum purchase to buy Small and Light products.
- Amazon Small and Light items can still be shipped with Prime.
- Products sold through the Small and light program will benefit from Amazon’s customer service and trusted reputatio
Want to Enroll in Amazon Small and Light?
Getting started with Amazon Small and Light is a straightforward process. If you want to enroll in the program, start by heading to Seller Central and navigating to the Small and Light page. If you’re having any difficulty finding this page, just search ‘Small and Light’ in Seller Central.
You will be presented with a page where you can check a product’s eligibility for Amazon Small and Light by entering its SKU. If you wish, you can enter one item or a bulk file of items.
If the products you enter are eligible, you can simply check ‘Enroll selected products.’ As long as these products are approved, you can begin saving money on their fulfillment fees.
As a new Amazon Small and Light user, you should check out the Small and Light prep and packaging guide to ensure the process goes smoothly.
Going Forward with Amazon Small and Light
As an entrepreneur, it pays to be on the lookout for savings, and Amazon Small and Light is a great way to lower your fees on eligible products. There’s no reason to delay enrolling your small and low-cost items in this advantageous program. Hopefully, you and your business can begin saving cash as soon as possible with Amazon Small and Light.
GETIDA and FBA Refunds
GETIDA. (GET Intelligent Data Analytics) offers a twofold service that’s hard to beat:
- Powerful and time-tested software that scans the last 18 months of your transactions for potential FBA refunds (the founders of GETIDA developed the software to track potential FBA refunds for their own Amazon business).
- A dedicated team of former Amazon reimbursement employees who submit claims on your behalf and follow up until there is a resolution.
Now here’s the best part: There is no charge for the software review of your transaction or to file claims. Where GETIDA makes money is to charge a percentage of approved Amazon FBA refunds. Considering the time you save, and the FBA refunds that might otherwise get “lost in the wash,” the fee is more than worth it. To make the GETIDA value proposition even more worthwhile, the first $400 in FBA refunds is free of charge.
It’s simple and easy to get started with GETIDA. There’s no obligation and any FBA refund claims only get submitted with your approval.