MyFBAPrep Director of Sales Michael Kliska recently joined the Saltbox team to share how Amazon sellers can keep their inventory moving now that Amazon has stopped providing FBA prep services. Below you’ll find a recap of the most important points.
Below is a quick highlight of where Amazon sellers find themselves today.
FBA Prep Services Retired: Amazon retired its FBA prep services as of January 1st. This means Amazon sellers are now fully responsible for inventory preparation.
Risk of Non-Compliance: If inventory is not compliant, sellers risk delays, rejected shipments, added fees, and ultimately lost revenue.
The Change Explained: Previously, a brand could select in their Seller Central portal to have Amazon perform prep services, such as bubble wrapping a fragile item, for a cost. Moving forward, that option is no longer available. Now, a seller must have the manufacturer ensure compliance, do the prep themselves, or use a partner. Amazon used to handle basics like labeling corrections, poly bagging, and bundling. Now, Amazon wants the product to enter their system seamlessly.
Since Amazon isn’t handling FBA prep any longer, it’s vital for sellers to ensure compliance. Here are the highlights to help you prepare for that.
Amazon provides per-SKU guidance on packaging, labeling, and FNSKU (Fulfillment Network Stock Keeping Unit) labels.
The requirement for FNSKU labels is increasing, as they provide Amazon with additional tracking information (e.g., for expiration or lot tracking) that a manufacturer’s barcode may not.
Bundling: Any sellable SKU, such as a two-pack, must arrive at the facility in its final, labeled state.
Shipment Accuracy: The products being labeled must match the products Amazon receives.
Co-mingling Update: In some good news, Amazon is moving away from the concept of “co-mingling” where multiple sellers’ identical, un-labeled inventory was stored together. This caused issues for sellers because poor quality from one seller could affect the entire listing. Amazon is requiring an FNSKU label to attach specific inventory to a specific seller.
Sellers must also consider the cost of transportation, AKA placement fees, which Amazon has introduced for moving inventory throughout their network. This was a cost that Amazon historically absorbed, but is now shifting to sellers.
Sellers have two scenarios:
In-House vs. Outsourced: There is no one-size-fits-all answer. Sellers should first determine if their product can avoid prep services altogether, possibly by working with a manufacturer or selling a non-fragile product version.
Tradeoffs: Sellers must consider the time, labor, and space tradeoffs of in-house prep. It is critical to ensure the effort put into prep results in compliance.
Prep Partners: Working with a partner like Saltbox or MyFBAPrep can provide expertise and scalability.
In-House Prep Requirements: Space requirements, trained labor, and process discipline are necessary for in-house prep. SOPs (Standard Operating Procedures) should be clearly documented, and a backup person should be trained.
Fulfillment Strategy: Prep is only step one; if prep is wrong, fulfillment will slow down, leading to wasted ad dollars and lost sales. Sellers must sequence properly: prep, then packing, then shipping, with visibility at every step.
Biggest Risk of Absorbing Prep In-House: The main risk is committing time and effort without the assurance that the prep will be accurate or compliant.
Transitioning Prep without Pausing Inbound Inventory: To inbound inventory moving forward, it must be prepped properly. The priority is to implement a solution quickly to avoid running out of stock.
Fragile Inventory/Double Boxing: For fragile items, the seller must ensure the FNSKU label is on the very outside of the double box and is fully exposed. If the option to select “ship in its own container” is available for the SKU in Seller Central, it should be selected to prevent Amazon from triple-boxing.
Cost Range for FBA Prep: Costs typically range from $0.25 to $0.30 per unit for simple FNSKU labeling up to a few dollars per unit for complex bundles, variety packs, or custom packaging.