Category: Amazon

Off-Season Tactics to Stay on Top During Slow Selling Seasons

This is a guest post from the team of BellaVix.

Seasonality on Amazon is a major challenge for eCommerce brands, particularly those selling in categories like apparel, novelty, and garden. Low demand on the digital marketplace doesn’t have to mean no sales though. Unlocking basic techniques and strategies is key to sustainable success as an Amazon seller.

Understanding the Amazon Best Sellers Rank (BSR)

The number-one factor to consider when measuring seasonality (or any product) is Amazon’s Best Sellers Rank (BSR). The BSR is a crucial metric for sellers, as it reflects the sales performance of a product within its specific category. The BSR is updated hourly, with recent sales carrying more weight. The lower the BSR, the higher the sales volume, which suggests greater product popularity. Amazon assigns BSR by category, subcategories and marketplaces included. See the example below on the same 7-in-1 Instant Pot Duo in the U.S. versus the UK marketplace.

U.S. Instant Pot listing

UK Instant Pot listing

A common misconception is that BSR influences ranking or ad sale, or even sales velocity. This is false; BSR is only an indicator of a product’s sales velocity and popularity. Products with stronger BSRs enjoy greater visibility, leading to increased sales. However, external factors can influence the BSR, such as changes in Amazon’s algorithm or competitor actions. Consider anything that may discourage shoppers from purchasing your products as a way to impact BSR.

Sellers must closely monitor their product performance, analyze competitor strategies, adjust pricing and promotions accordingly, and stay informed about Amazon’s policy updates and algorithm changes.

Impact of seasonality on BSR

BSR is a dynamic metric that changes constantly. It’s updated on an hourly basis and is directly impacted by category demand. During slow periods, you can expect your BSR to weaken due to low demand or less competition. When demand picks up, you should see improvements in your BSR as sales increase and more competitors enter the market to compete in your category.

Understanding your product’s seasonality can help you plan and strategize effectively. To stay on top of seasonality, sellers must identify and capitalize on relevant trends and events, adjust marketing strategies, offer promotions or discounts, and optimize product listings to target seasonal keywords.

Pay attention to your product category when monitoring your BSR. A broad category will see the largest swings since other items in different subcategories that are less impacted by seasonality will improve their BSR. Check the Best Sellers page and look for similar items to ensure you’re competing in the best categories for your products. Below is an example of Best Sellers for the sunscreen category:

Off-season tactics to maintain BSR

Sellers can employ several tactics during the offseason to maintain their BSR, including:

  • Offer bundle deals or product variations: Combining complementary items or selling multiple versions of the same item can increase perceived value and attract buyers.
  • Run targeted ad campaigns: Both on and off Amazon, this strategy broadens your audience reach.
  • Evergreen advertising strategies: Identify relevant keywords that you want to rank higher for when in season and continue to advertise modestly to maintain a strong BSR year round, making ramp-ups more efficient and edging out the competition.
  • Optimize product listings: Include relevant keywords and updated content to improve search visibility.
  • Leverage social media and influencer marketing: Social media excels at generating buzz and driving traffic to product listings.
  • Engage with customers: Take advantage of Amazon’s Manage Your Customer Experience tool or Amazon Posts to encourage repeat purchases.

Here’s an example of an effective seasonal bundle strategy by Sun Bum:

Sell throughout the seasons

Expanding your product offering to cover different seasons can protect your profit margins. For example, consider adding a winter-related product to your portfolio if your primary product is geared toward summer. This diversification helps maintain consistent sales throughout the year.

Quicksilver is a brand that’s successfully bridged the gap between seasons. They have winter and summer apparel lines targeting surfers and snowboarders. They also update their stores based on the season, which earns them consistent sales year-round.

Leveraging seasonal keywords

Amazon’s search engine aims to provide customers with the most relevant product results based on their search queries. For example, a query for “jacket” has a different set of relevant documents in winter than summer. However, with a limited context and an open-ended query like “jacket,” the onus is on the search engine to show more seasonally relevant documents, or at least not become over indexed to the user behavior recorded during the preceding season.

Therefore, it’s important for the search engines to be seasonally aware and incorporate that information into rankings. Using seasonal keywords in your product listings can increase your product’s visibility during specific seasons or events, potentially boosting sales.

An example of this is how, when someone searches for “jacket,” Amazon search results will display winter jackets in the winter, and summer jackets in the summer:

 

Analyze Amazon seasonality

Closely monitoring seasonality trends on Amazon is crucial when planning your sales strategy. If you understand your product’s performance during the previous season, you can better prepare for the upcoming season. This includes stocking up on inventory before the start of the peak season and setting up Amazon PPC ads accordingly.

Manage seasonal campaigns

Sellers must structure their campaigns to adapt smoothly to seasonality. This could mean advertising for seasonal products aggressively during the on season and bidding on your seasonal keywords. Alternatively, it could involve including seasonal keywords and targets in regular ads but increasing bids on them when the season arrives.

Budget for seasonality

Budgeting plays a crucial role in managing seasonality. Sellers must proactively adjust their budgets based on anticipated changes in demand. This could involve increasing bids for all seasonal keywords as demand for seasonal products rises. Alternatively, sellers could monitor their Amazon reports for signs that the on-season is about to begin and adjust their budgets accordingly.

The influence of external factors on BSR

External factors, such as changes in Amazon’s algorithm or competitor actions, can significantly impact a seller’s BSR. Sellers need to monitor these elements closely and adapt their strategies accordingly. That could entail adjusting pricing and promotions, analyzing competitor strategies, and staying informed about Amazon’s policy updates and algorithm changes.

For example, in 2022, the FDA banned Benzene, which heavily affected sunscreen manufacturers and their ability to sell products on Amazon.

Operational efficiency and BSR

Efficient inventory management ensures consistent product availability, minimizing the chances of running out of stock and negatively impacting BSR. Streamlined order processing and fulfillment procedures also help maintain fast shipping times so you consistently meet customer expectations, which leads to positive reviews and repeat purchases.

Wrapping up — Turn seasonal lows into selling highs

The fluctuations of seasonality can be challenging for eCommerce sellers. However, with a strategic approach and a keen understanding of how it affects their profits and operations, sellers can effectively manage and boost sales of seasonal products on Amazon even during periods of low demand. The key is to stay adaptable, proactive, and informed by employing a combination of strategies to maintain a strong BSR and drive consistent sales growth.

How to Protect Your Amazon Brand From Counterfeits

eCommerce has empowered millions of small and medium-sized enterprises to reach a global audience. Amazon, especially, has become synonymous with online retail, providing a digital marketplace for sellers to target a vast spectrum of industries and niches. Unfortunately, it’s also given rise to a destructive force: counterfeits.

These imposters do more than simply copy legitimate brands and offer substandard products — they tarnish business reputations, compromise the integrity of the marketplace, and damage the overall buyer experience.

The Organization for Economic Co-operation and Development (OECD) estimates 3.3% of world trade is in counterfeit and pirated goods, producing billions of dollars in lost sales. Amazon isn’t immune to this trend and so has been proactive in countering counterfeits.

Keep reading to learn more about Amazon’s measures to combat fakes and how you can protect your brand against imposters.

Countering counterfeits on Amazon

Since the company’s inception, Amazon has been at the forefront in the fight against counterfeit products. Recognizing the immense harm they cause to the eCommerce ecosystem, Amazon has initiated numerous programs to mitigate these imposters as much as possible, including:

  • Brand Registry program: Allows brands to register their logos and intellectual property with Amazon, making it easier for the platform to remove counterfeit listings
  • Transparency: Product serialization service that prevents counterfeits from reaching customers
  • Project Zero: Uses machine learning to scan listings and remove suspected counterfeits automatically, putting more power in the hands of the brands
  • Amazon report infringement form: Designed to provide a channel for owners of intellectual property rights and their representatives to alert Amazon about potential violations

What is the INFORM Act?

A new U.S. law designed to protect consumers and small businesses went into effect in June 2023. The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act, also known as the INFORM Consumers Act, mandates online retailers to collect, verify, and disclose information about high-volume third-party sellers.

Amazon supported this bill before its approval, advocating for a nationally consistent standard to prevent small businesses from grappling with a hodgepodge of state-level regulations.

MyFBAPrep’s co-founder, Tom Wicky, sees the legislation as a positive step forward: “I do find the legislation to be a step in a positive direction, as it will hold sellers accountable for the quality of their product — which ultimately benefits the consumer. It also will help listing quality and benefit brand owners.”

11 Ways to protect your brand from counterfeiters

We’ve compiled a list of practical strategies to help you navigate the challenge of protecting your brand from counterfeits. These are aimed at preventing fakes, preserving your brand’s reputation, and maintaining consumer trust.

1. Implement unique branding elements

More than an aesthetically pleasing logo or a catchy slogan, branding serves as a unique identifier that sets your products apart from others.

Implementing unique branding elements on your products and packaging can significantly deter counterfeiters. Consider adopting distinctive markers such as:

  • Holograms and watermarks: A hologram or a watermark that’s difficult to replicate is a strong deterrent for counterfeiters. Make sure your customers know to look for these when verifying the authenticity of your products.
  • Serial numbers or barcodes: Assigning unique serial numbers or barcodes to each product makes counterfeiting challenging. You can also use these codes to track and authenticate products, which adds another layer of protection for your brand.
  • Product or packaging design: Counterfeiters struggle to mimic intricate product or packaging designs. Opt for one that’s difficult to replicate but is easily recognizable for your customers.
  • Quality materials: Imposters often use low-quality materials to copy products. Using high-quality materials sets a standard that counterfeiters find hard to match.

2. Use QR codes

QR codes are a powerful weapon in the fight against counterfeiting. They can store a significant amount of data, are easy to use, and add an extra layer of security for your brand. For example, when a shopper scans the code with their smartphone, it can lead them to your official website or a dedicated page that confirms the product’s legitimacy.

The success of QR codes largely depends on educating your customers about their purpose and how to use them. Include instructions on your packaging and website to guide buyers. This not only safeguards your brand against counterfeiters but also provides a better customer experience.

3. Build close relationships with your customers

Engage and foster connections with your shoppers through email marketing, social media engagement, and communities. When customers feel a personal connection to your brand, they’re more likely to make repeat purchases from you rather than risk buying counterfeits. They’ll trust your products and appreciate the quality you deliver.

Plus, engaged customers are more inclined to notify you if they come across counterfeit versions of your products. They might spot these fakes on other platforms or in physical stores and alert you, allowing you to take action. Cultivating strong relationships with your customers helps detect counterfeits early so you can promptly investigate and address the issue.

4. Take advantage of Amazon’s brand protection programs

As previously discussed, Amazon developed a series of anti-counterfeit initiatives, so you should harness their power to your benefit.

Register your brand, take part in the Transparency program for product serialization, and employ Project Zero’s AI-powered tools to monitor and manage potential counterfeit listings.

5. Keep a vigilant eye on the market

Monitor your brand name and best-selling products on Amazon as well as other platforms consistently. Early detection of counterfeits can save your brand reputation and prevent revenue loss.

You can be proactive in several ways:

  • Regularly review your listings: Check your Amazon listings regularly for any unauthorized changes; counterfeiters sometimes try to hijack listings to sell their fake goods. If you notice anything suspicious, report it to Amazon immediately.
  • Track your best-selling products: Closely watch your best-selling products, as these are often the prime targets for scammers. Look for unexpected changes in sales patterns, such as sudden drops in sales, which could indicate that counterfeit versions of your product are being sold.
  • Monitor online channels: Keep an eye on your other online sales channels, such as eBay, social media, and other eCommerce sites. Counterfeiters often sell their fake products on multiple platforms.
  • Use monitoring services: Consider investing in professional monitoring services. These companies apply advanced algorithms and tools to scour the internet and identify counterfeits. They can provide real-time alerts when they detect potential infringements.

Detect and address counterfeiting activities early to minimize their impact on your brand and your customers.

6. Register intellectual property rights

Register your trademarks, patents, and copyrights when applicable. This asserts your legal ownership over your products and your brand. Should counterfeiting issues arise, having your intellectual property rights in order will provide a solid legal footing for you to take action against thieves.

7. Apply for Amazon’s A+ Content

Amazon’s A+ Content (previously known as Enhanced Brand Content) effectively makes your listings stand out from potential counterfeiters.

With A+ Content, you can provide richer product descriptions using high-quality images, text placements, and a unique brand story. Here’s how to leverage it for maximum protection:

  • Distinct product descriptions: A+ Content allows you to break away from traditional product descriptions with a unique blend of media. You can craft richer, more informative descriptions, making them harder for counterfeiters to replicate.
  • Visual elements: Including high-resolution images, 360-degree views, and videos offer a detailed view of your products, which both improves the customer’s shopping experience and serves as another obstacle for counterfeiters to duplicate.
  • Brand storytelling: Utilize the Amazon platform to share your brand story and build a deeper connection with your customers (which also fosters loyalty). A genuine brand story can’t be copied and can help differentiate you from counterfeiters.
  • Detailed product information: Leverage the additional content spaces to feature detailed product information, usage guides, comparison charts, etc. The more detailed your information, the harder it is for counterfeiters to copy it accurately.

To access Amazon’s A+ Content, you must be part of Amazon’s Brand Registry. Once you’re in the program, capitalizing on A+ Content can significantly strengthen your defense against counterfeiters and ensure a superior shopping experience for your customers.

Looking for more ways to upgrade your product listings? Check out MyFBAPrep’s strategies for show-stopping product listings.

8. Regularly test buy

Test buying is a practice where a brand owner or representative purchases their products from other sellers who also list those items. The action aims to verify the authenticity of the products being sold under the brand’s name.

When the item arrives, you examine it as well as its packaging to determine whether it’s a genuine or counterfeit product. This helps identify unauthorized sellers or counterfeiters selling fake products under your brand’s name.

If you discover a counterfeit item through a test buy, you can use that evidence to report the issue to Amazon and take legal action against the counterfeit seller, if necessary. It’s an important tool in maintaining brand integrity and customer trust.

9. Litigation

Consider taking legal action against counterfeiters when you find them. This is an aggressive approach, but it may be necessary to defend your brand in some cases. Consult with a lawyer who specializes in intellectual property rights to explore your options.

10. Educate your customers

Regularly remind your customers about how to identify genuine products. Encourage them to purchase only from your official Amazon store or authorized resellers.

It might be beneficial to show the difference between a counterfeit item and a genuine product if you can obtain a counterfeit safely. Highlighting the discrepancies in quality, design, or performance can be a powerful deterrent against counterfeit goods.

Educated customers can play a significant role in identifying and reporting counterfeit products, so invest in and leverage your consumer base for greater policing.

11. Partner with reliable fulfillment providers

The delivery leg of the shopping experience is a subtle yet powerful method of shielding your brand. Working with professional fulfillment partners like MyFBAPrep guarantees your customers a consistent and memorable unboxing experience that’s distinctly yours (and difficult to fake).

When you partner with a trustworthy fulfillment provider, your brand gains access to:

  • Uniform branding: An experienced logistics service ensures consistent branding across all your products. Elements such as branded packaging materials and even how the items are packed make your brand synonymous with a uniform unboxing experience, which counterfeiters can’t replicate easily.
  • Quality control: Reputable fulfillment providers have stringent quality control processes in place. They ensure your products are stored, handled, and packaged correctly, which reduces the chances of mix-ups or damage that could tarnish your brand image.
  • Inventory management: A reliable fulfillment provider keeps track of your inventory in detail. This prevents unauthorized sellers from introducing counterfeit products into your inventory (a practice known as commingling).
  • Smoother customer experience: Fast, reliable shipping and handling builds customer trust in your brand. In turn, they’re more likely to buy through you or your authorized sellers again rather than fall for (or seek out) counterfeit offerings.
  • Reports on suspicious activities: Fulfillment providers often notice and report if something’s amiss, such as sudden spikes in product demand or returns, which could signal counterfeit activity. Their vigilance provides an extra layer of defense for your brand.

Wrapping up — Protect your Amazon brand from counterfeits

The Amazon marketplace has established itself as the land of opportunity for entrepreneurs both new and old. “When you’re talking about third-party sellers on any marketplace in the U.S., you’re talking about a true American Dream story,” says Tom Wicky. “Many of these sellers are mom-and-pop shops that were selling their goods and services with just a local reach before making it onto a marketplace. Now, having access to millions of customers on a global scale, they’ve been given the opportunity to truly thrive.”

However, that reach comes at a price, in the form of counterfeiters and unauthorized sellers looking to capitalize on your hard work. Protecting your Amazon brand from these scammers is an ongoing battle, but you can equip yourself to fight it. With the right blend of proactive vigilance, strategic measures, and partnerships, you can significantly diminish the impact of counterfeit activity on your brand.

Every stage of your business’s shopping experience reveals opportunities to safeguard your name, from unique branding elements to educational initiatives. As you erect these durable barriers against counterfeiters, you simultaneously elevate your brand’s reputation, boost customer trust, and strengthen the overall shopping experience.

How to Prevent Stockouts as an FBA Seller

This is a guest post from Julian Bonte-Friedheim. Julian writes about the ins and outs of eCommerce for 8fig, a company that provides flexible funding to online sellers. Their advanced AI CFO technology gives sellers the tools to scale their operations and optimize their supply chains for sustained long-term growth.

Seeing your products sell in large quantities is the dream of every FBA (Fulfillment by Amazon) business. However, behind this triumph hides an insidious risk: running out of stock. What appears to be a blessing can quickly become a curse. When your inventory is empty, you lose huge sales, possibly even during a peak sales period.

Other downsides can arise as well, from lost customer loyalty to decreased product ranking. In this article, we offer the best tips for preventing stockouts — and derailing your sales momentum.

How does a stockout affect an FBA business?

Running out of stock is a nuisance for any retail business. However, as an FBA seller, that misstep can harm your operations in even more ways.

Lost sales

Stocking out at the wrong time can cost you your best potential sales window. This is especially important if you sell seasonal items like school supplies; being out of stock during the few weeks in August before school restarts can mean major profit losses. Or, if you sell heart-shaped chocolates, running out of inventory the week before Valentine’s Day can be extremely costly to you.

Poor customer retention

With perks like same-day shipping becoming the norm, customers are now highly demanding when it comes to convenience, and seeing a product they want out of stock can induce frustration. That, in turn, may drive them to shop with competitors, which risks even previously loyal buyers switching over and committing to another brand.

Products that are needed regularly and purchased with a subscription are particularly vulnerable to this outcome. In the worst case, it can even result in someone writing a negative review of your product to express their frustration and deter potential buyers.

As such, staying in stock beyond simply keeping your sales at a consistent level quietly maintains your repeat customers. Adequate inventory gives them one less reason to leave you for a competitor.

Reduced ranking

When your product runs out of stock, Amazon responds by lowering your ranking on search results pages. The marketplace has a vested interest in doing so, since clicking on a product that’s unavailable worsens the overall customer experience. Additionally, shoppers who can’t purchase the item they want are more likely to buy from a competitor like Walmart, delay their purchase, or abandon their cart altogether. For these reasons, Amazon does their best to make absolutely certain people only see items that are ready to ship right away.

You might spend $1–$5 dollars in marketing budget to target someone with ads and move them through your purchase funnel, only to lose them because of a stockout. Worse, running out of stock incurs several hidden costs you may be unaware of (more on this later). When you eventually restock, it’s possible to regain your ranking, but it’ll take time and more of your marketing budget. That’s in addition to lost consumers who might not return and now prefer to buy from competing brands.

Loss of reviews

This may seem like a small factor, but regular positive reviews on your product listings is a significant sales driver. One study found most online shoppers look at reviews, with 93% of them saying it impacted their buying decisions.

Sometimes, listings experience a change in production or are sourced from a new supplier, causing deviations in quality; recent positive comments serve to reassure customers about the continued excellence of the product. Knowing that people bought the item recently and were happy gives consumers more confidence to click “Buy.” So, a prolonged stockout that produces a gap in product reviews can deter new buyers, even once you’re back in stock.

How to avoid running out of stock

The main cause of stockouts is supply chain mismanagement. With clearer oversight of your operations, you’ll be better able to anticipate and avoid disruptions that lead to running out of stock.

Use supply chain planning tools

To build a seamless supply chain, you need appropriate software designed to reduce the margin for error. Accurate, data-driven inventory forecasting can make an immense difference in understanding when to order your next product shipment. The goal is to create a broad outline of your logistical processes.

For starters, plan your shipments according to your predicted sales numbers. You want to identify the thin line between avoiding a stockout and acquiring too much inventory and needlessly increasing your storage costs. By mapping your expenses, you also increase your cash flow, which is always beneficial.

Using supply chain planning software will also sharpen your oversight of your operations and expenses. Being able to monitor them and spot abnormalities early on will enable you to adapt quickly and avoid situations that cause stockouts.

Consider alternative storage and supply options

Diversification is a great way to avoid risk. When you rely exclusively on one supplier and they experience issues, all your operations come to a standstill. So, it’s important to set up alternative options early on.

Talk to other suppliers who are able to procure the same product and maintain the level of quality you expect. You should look for someone local, even if the price is higher; faster shipping times when your stock is almost empty can balance out that added expense.

Relatedly, you may want to consider storing safety stock locally as well. Although it’ll raise your storage expenses, having that failsafe can prevent a stockout (and the associated sales loss).

Pause marketing campaigns

If you notice your stock is set to empty before your next shipment comes in, you should reduce or completely cease your ad spending. Besides cutting marketing expenses, this can lower the demand for your products enough to avoid the dreaded stockout. Once your inventory is full again, you can restart your ads without the risk of running out of items.

Improve your shipping operations

Review your contract with your supplier and check how it compares to competitors’ offerings. If you find a better deal, like faster shipping, explore that avenue. You don’t have to switch, but you can show your current supplier the other company’s stronger offer to negotiate greater benefits for your business. If they refuse, you can always part ways.

Even if you struggle with negotiations, know that you may have more leverage than you realize. Just as you want a reliable supplier, suppliers like customers who earn them consistent sales. If you’ve partnered with them for a long time, they might be willing to offer better shipping conditions to convince you to stay. Those faster shipping times will help avoid stockouts.

Increase prices

If you already stopped your marketing campaigns, but your sales are still pushing you toward a stockout, consider raising prices slightly. This should only be a last resort, since it might reduce your store’s search results ranking. When done correctly though, increasing prices can lessen demand enough to keep you in stock until your next product shipment arrives. As an added bonus, it also boosts your profit margins for the inventory sold during that window.

Before you raise prices, develop a thorough understanding of the market and current pricing norms. A significantly higher cost than your competitors will need to be compensated through better product quality or other perks, such as a warranty.

Explore funding options

A lack of cash flow is one of the main reasons for FBA sellers to run out of stock. Ordering inventory in advance, then having to wait several months before it starts to sell requires deep pockets. That’s why many eCommerce sellers look for external funding to hold them over until then. This can come in the form of a bank loan, merchant cash advance, or revenue-based funding.

8fig offers several great options that provide the continuous capital needed to prevent stockouts. Having this extra cash on hand enables you to respond to looming stockouts quickly and effectively. You also gain access to 8fig’s AI CFO technology, which helps you oversee your supply chain and plan up to an entire year of inventory shipments ahead of time. Sign up today and take your business to new heights (while avoiding the lows of inefficient inventory).

Wrapping up — Go with the flow (of stock) on Amazon

As we’ve shown, going out of stock is a surefire way to lose sales and customers on Amazon.

However, you can avoid this with supply chain planning tools, alternative storage backups, and better optimized logistics. Follow these and the other tips above to prevent stockouts as an FBA seller and keep the sales rolling.

Top Amazon Categories: The 10 Hottest-Selling Categories of 2023

This is a guest post from SmartScout, one of the leading market research and data analytics tools trusted by Amazon sellers worldwide.

Amazon is abuzz with activity as buyers and sellers trade millions of products across a vast array of categories every day. Navigating this marketplace successfully is vital for sellers, and a crucial aspect of that lies in identifying the top-performing product categories.

Recognizing the top-selling categories empowers vendors to spot potential opportunities for new items to branch out to, understand consumer trends, and strategically expand their offerings.

In this post, we’ll explore the 10 best-selling categories on Amazon based on estimated monthly revenue. We’ll uncover the secrets behind their success and the key trends fueling their growth.

Whether you’re an established Amazon seller or a newcomer, these insights will help you optimize your product selection and boost your sales.

What are the best-selling categories on Amazon?

Here’s an overview of the top 10 categories on Amazon based on monthly revenue.

Category Est. Monthly Revenue
Clothing, Shoes, & Jewelry $5,364,805,909.31
Home & Kitchen $3,879,525,594.72
Health & Household $3,407,125,818.43
Sports & Outdoors $3,051,131,098.20
Pet Supplies $2,924,255,815.11
Books $2,864,205,446.12
Patio, Lawn, & Garden $2,544,481,499.40
Beauty & Personal Care $2,350,263,284.26
Tools & Home Improvement $2,115,375,918.63
Electronics $2,052,925,680.32

Note: This information was collected from SmartScout. The estimated monthly revenue figures represent the revenue each category generated as of June 15, 2023. These figures may change over time due to market fluctuations and trends.

1. Clothing, Shoes, & Jewelry (est. monthly revenue: $5.3 billion)

This category tops Amazon’s sales charts, earning an estimated monthly revenue of over $5.3 billion. It appeals to fashion enthusiasts and style-conscious shoppers with its vast selection of items.

Key growth trends include:

  • Online shopping surge: Consumers increasingly prefer shopping online, drawn by Amazon’s convenience, diverse options, and competitive prices.
  • Sustainability and quality: The demand for sustainable, high-quality products has skyrocketed as consumers prioritize ethically made, durable items, even at a higher cost. Sustainable brands lead the way — Pangaia, Tala, Stella McCartney, and others are capturing more market share by championing organic and recycled materials, fair labor practices, and transparent supply chains.
  • Influencer culture and social media marketing: Shoppers turn to Amazon for influencer-promoted or social media-featured items, driving the category’s high sales. According to a study published in “Frontiers in Psychology,” influencers’ authenticity and relatability strongly affect consumer behavior, particularly among Gen Z, impacting purchasing decisions.

2. Home & Kitchen (est. monthly revenue: $3.8 billion)

This category offers home organization products, eco-friendly solutions, smart home technology, home decor, and health and wellness products. As people spend more time at home and prioritize comfortable and functional living spaces, the category has experienced significant growth.

Key growth trends include:

  • Home organization and storage: The increasing focus on home life has boosted demand for clutter-free spaces. Consumers actively seek storage containers, closet organizers, and space-saving furniture to optimize their living spaces. This minimalistic trend drives sales of home organization products.
  • Smart home technology: Products like voice-controlled assistants, smart thermostats, automated lighting systems, and smart kitchen appliances have gained traction due to their convenience, energy efficiency, and enhanced functionality.
  • Health and wellness: Consumers are buying products like air purifiers, water filtration systems, exercise equipment, and wellness-related kitchen gadgets to promote a healthy lifestyle and home environment.

3. Health & Household (est. monthly revenue: $3.4 billion)

Expanding beyond the previous category, this sub-group comprises personal care items, health products, home medical supplies, and natural and organic alternatives, thriving on the growing emphasis on wellness and self-care.

Key growth trends include:

  • Home healthcare and medical supplies: With an aging population and the rise in chronic diseases, consumers actively seek products like blood pressure monitors, glucose meters, mobility aids, and orthopedic supports. These items help manage health conditions and provide comfort for individuals facing health challenges.
  • Home fitness: Consumers are buying fitness equipment, workout accessories, and wellness-related products for home use. Items like resistance bands, yoga mats, and stationary bikes have witnessed increased sales as individuals focus on maintaining their fitness routines from the comfort of their homes.
  • Mental health and self-care: Shoppers invest in products promoting relaxation, stress reduction, and overall well-being. Items like aromatherapy diffusers, meditation aids, sleep aids, and stress relief supplements experience higher sales as emotional and psychological well-being becomes a top priority.

4. Sports & Outdoors (est. monthly revenue: $3 billion)

This category encompasses fitness equipment, sports gear, outdoor recreation products, and athletic apparel. Its popularity is soaring as more individuals prioritize active lifestyles and outdoor activities.

Key growth trends include:

  • Health and fitness consciousness: Consumers are increasingly focused on physical fitness and active lifestyles, leading to a rise in demand for fitness equipment, workout apparel, and accessories for activities like running, cycling, yoga, and strength training.
  • Tech-integrated sports gear: The sports gear industry has embraced technology, introducing innovations like smartwatches, fitness trackers, GPS devices, and sports performance analytics that have gained popularity among sports enthusiasts. These advancements enhance training, tracking, and overall sports experience, driving increased sales.
  • Outdoor recreation: Consumers seek products like camping gear, hiking equipment, fishing accessories, and water sports equipment to enrich their outdoor adventures. A desire for exploration, connection with nature, and a break from sedentary routines fuels the demand for outdoor recreational products.

5. Pet Supplies (est. monthly revenue: $2.9 billion)

The pet supplies category owes its success to a large and devoted consumer base of pet owners. This category fulfills pet needs with products like food, accessories, grooming items, and health supplies.

Key growth trends include:

  • Premium and natural pet products: The pet humanization trend is driving the demand for top-notch, natural pet products. Consumers invest in high-quality pet food, organic treats, and eco-friendly accessories, prioritizing their pets’ well-being and nutrition.
  • Eco-friendly and sustainable products: Sustainability holds increasing importance in the pet supplies market. Consumers seek eco-friendly choices like biodegradable pet waste bags, natural and organic bedding materials, and recycled or upcycled pet toys. Brands offering environmentally conscious pet products have carved out a niche in the pet supplies category.
  • Smart pet technology: Technological advancements led to the birth of smart pet technology. Pet owners opt for smart pet feeders, GPS trackers, pet cameras, and automatic pet toys, valuing the convenience, remote monitoring capabilities, and overall enhanced pet ownership experience.

6. Books (est. monthly revenue: $2.8 billion)

Despite the prominence of all things digital, books maintain their popularity, with physical and ebook formats driving strong sales. The books category spans various genres, including fiction, non-fiction, self-help, and children’s books.

Key growth trends include:

  • Ebooks and digital reading: Ebooks and digital reading devices have transformed the book industry. Consumers increasingly prefer the online format for convenience, portability, and easy access. Ereaders, tablets, and smartphone apps have thus expanded the reach of the books category, opening new opportunities for authors and publishers.
  • Self-help and personal development: Consumers seek guidance, inspiration, and practical advice on mindfulness, productivity, relationships, and career growth. The books category caters to these interests, empowering individuals to enrich their lives and achieve their aspirations.
  • Audiobooks and podcasts: Consumers value the convenience and multitasking ability of audio formats, and the books category has embraced that trend, offering a wide selection of audiobooks on platforms like Amazon’s Audible. The podcast boom also enables authors to reach fresh audiences and promote their works effectively.

7. Patio, Lawn, & Garden (est. monthly revenue: $2.5 billion)

This category serves outdoor living, gardening, and landscaping needs. The growing interest in outdoor entertaining, gardening hobbies, and serene outdoor havens propels its growth.

Key growth trends include:

  • Outdoor living and entertaining: Consumers are shaping their outdoor spaces into extensions of their homes, fashioning areas that invite relaxation and socializing. This trend has boosted sales of patio furniture, outdoor décor, fire pits, and grilling accessories.
  • Gardening as a hobby and self-sustainability: Shoppers embrace gardening to connect with nature, cultivate their own produce, and create picturesque landscapes. This trend heightens the demand for gardening tools, planters, seeds, and organic fertilizers.
  • Wellness and relaxation in outdoor spaces: Related to the first point, people also seek products that promote relaxation and mental well-being in their outdoor spaces, like hammocks, yoga mats, meditation gardens, and Zen-inspired décor.

8. Beauty & Personal Care (est. monthly revenue: $2.3 billion)

Beauty and personal care includes skincare, haircare, makeup, and personal care products. The focus on clean and natural beauty, personalized experiences, and self-care has contributed to the success of this category.

Key growth trends include:

  • Natural and organic ingredients: The clean beauty movement has gained momentum as consumers increasingly prefer products formulated with natural and organic ingredients. This trend has also sparked the rise of indie brands and the expansion of clean product lines among established brands.
  • Skincare routines: Individuals now prioritize skincare routines and are willing to invest in high-quality products, including serums, essences, face masks, and other specialized treatments. This trend has boosted sales of skincare products that address specific concerns such as anti-aging, hydration, and acne.
  • Men’s grooming and self-care: Men have embraced skincare, haircare, and grooming routines and so seek products tailored to those specific needs. This trend has driven the expansion of men’s grooming offerings, including beard care products, skincare designed for men, and specialized grooming tools.

9. Tools & Home Improvement (est. monthly revenue: $2.1 billion)

This category covers tools, home improvement supplies, and equipment for DIY projects and renovations. With more people taking on home improvement projects, plus the integration of smart home technology, the category has seen a noteworthy increase in sales.

Key growth trends include:

  • DIY culture and home renovations: The popularity of DIY projects and home renovations has risen, driving sales of tools, power equipment, and construction materials. Consumers seek products that enable them to tackle projects themselves, in turn saving them money and personalizing their homes.
  • Smart home technology and automation: Buyers are embracing products such as smart thermostats, home security systems, voice-controlled assistants, and automated lighting systems. These innovations provide convenience, energy efficiency, and enhanced functionality and so are driving sales within the category.
  • Home organization and storage solutions: The focus on decluttering and organizing living spaces has driven the popularity of home organization and storage solutions. So, shoppers are buying products such as shelving systems, storage containers, closet organizers, and garage organization solutions.

10. Electronics (est. monthly revenue: $2 billion)

The electronics category includes a wide range of devices, such as smartphones, laptops, TVs, and smart home devices. Advancements like smart home technology and the increasing demand for mobile devices have driven the success of this category.

Key growth trends include:

  • Mobile devices and accessories: The demand for mobile devices such as smartphones and tablets remains strong. As such, consumers continually seek out the latest models and advancements. Additionally, the market for mobile accessories, including cases, chargers, and wireless headphones, has grown as shoppers look to enhance their mobile experience.
  • Smart home technology and connected devices: Buyers are adopting smart speakers, displays, thermostats, and other connected devices to create a seamless, automated living experience. The convenience, energy efficiency, and integration of smart home products have accordingly boosted sales within the category.
  • Wearable technology: Wearable technology has become increasingly prevalent in modern society. Customers have embraced smartwatches, fitness trackers, and health monitoring devices to track physical activity, monitor health, and stay connected.

Wrapping up — Find your Amazon store’s next big sales ticket

Understanding the top-selling categories on Amazon and the trends driving their success is crucial for any seller aiming to thrive in this competitive marketplace. But acquiring knowledge is only the first step. From there, you need to:

  • Identify your niche: Examine the categories and trends aligning with your product or business idea. Can your product stand out in a specific category? Is there a trend you could capitalize on?
  • Understand your customer: Gain insight into what encourages customer purchases. Use that information to become familiar with your target customer’s needs and preferences.
  • Tailor your product offering: Can you adapt your product to better fit these trends? For example, if you operate in Amazon’s Beauty & Personal Care category, could you offer products with natural and organic ingredients?
  • Market strategically: Apply these trends to your marketing. Emphasize how your product aligns with them in your product descriptions, social media posts, and other marketing materials.
  • Optimize your fulfillment: Work with a logistics partner that can help you across a wide range of 3PL services, so no matter which categories you expand to, you’re ready with FBA prep, DTC, and more.

Armed with these insights, you’ll be well equipped to make strategic decisions that drive your success on Amazon.

How to reduce Amazon returns

This is a guest post from Isaac Hadriye, President & CEO of OnSite Support.

Providing a smooth buyer’s journey is an arduous task for Amazon sellers, and returns only add to the complexity. They can result in lost revenue, especially if you can’t resell the item. This is particularly problematic for merchants who sell products with low profit margins. You also have to contend with additional costs like return shipping expenses and Amazon’s refund fees, which can quickly add up and hurt your bottom line.

Through internal research, we found it takes three new sales to make up for each order that’s returned, and with average eCommerce return rates ranging from 20% to 30%, Amazon merchants face potentially huge revenue loss. Preventing returns in the first place is your best defense, as it helps you preserve inventory and maintain a healthy store reputation. We’ll walk you through specific strategies that can turn these minuses into lucrative pluses.

How to minimize returns for your Amazon store

To limit the number of returns you receive on the marketplace, adopt a comprehensive approach consisting of the following tactics.

Include accurate product descriptions and images

One of the most common reasons for returns on Amazon is inaccurate product descriptions and misleading images.

As a buyer, there’s nothing worse than receiving something in the mail and realizing it’s completely different from what you expected. If the discrepancy between what’s on your product listing and what the customer holds in their hand is too great, they’ll likely return it.

Each product listing should be detailed and accurate, with all relevant information clearly laid out, including its uses, dimensions, color, material, technical specifications, compatibility with other products, and even limitations. Also, feature high-quality images and videos from multiple angles to set realistic expectations for customers.

If your item comes in various versions, highlight any differences between each option. If you sell clothes, include a size guide so customers can measure themselves and make the right selection — clothes that don’t fit are certain to be sent back.

Remember, with online shopping, customers are unable to see or feel the item before they buy, so you have to make it as easy as possible for them to understand what they’re buying.

Create engaging videos

People are more likely to purchase if they can see a video of the product in use. Static images are helpful, but being able to show how a product works with movement gives a better idea of what they’re buying. Cover multiple angles and use cases so the customer has all the information they need to make a decision.

Keep in mind, however, that you can only include videos if you’re a registered brand on Amazon.

Display a clear and easy-to-understand return policy

It may be counterintuitive, but having an easy, no-hassle returns policy goes a long way toward reducing returns because it establishes customers’ trust in you from the start. Customers may avoid you if they know stringent requirements limit their ability to return items. Having a “free returns” option, however, lets them know you care about making them happy.

Concretely outline your return policy on your product listings, including the time frame, the product conditions required for a return to be accepted, and the refund process.

Provide excellent customer service

Lackluster customer service virtually guarantees you’ll experience more returns. Make sure you address every complaint quickly and efficiently. People want to feel their concerns matter, so actively listen to their issues and keep consumers informed of the actions you take. That white-glove service can change their minds before they pull the trigger. Beyond preventing returns, the quality of your customer service can also turn a negative experience into a positive one and thus reinforce brand loyalty.

Provide better technical and quality support by establishing an open, well-structured communication channel with your customers. This allows you to drill down into each buyer’s specific issue and take corrective measures. Sometimes, returns are due to incomplete or inaccurate product information, while in other cases, consumers may require a replacement due to defects, or outright refuse to accept orders if the packaging is damaged. Clear communication is imperative to identify these problems and remedy them correctly.

Another key component of satisfactory customer service is having robust product support for Amazon. Onsite can build a customized landing page for your business where customers can go directly from their order page and find all kinds of resources to help them troubleshoot their purchase letting them hopefully sort their issue before having to return anything.

“Get product support” button directly on Amazon orders

Conduct quality control checks

One of the most effective ways to prevent returns is to perform quality control checks on products before they’re shipped to customers. This entails inspecting for defects, ensuring items are properly packaged, and verifying they meet the specifications outlined in the product listing.

Whether you handle your fulfillment through FBA or a third-party provider, it’s crucial to ensure you haven’t received a bad batch from suppliers and avoid shipping any defective units.

If you use FBA, you can book inspections to make sure everything meets the program’s requirements and that the quality of your fulfillment operation — including both incoming and outgoing shipments — is up to a high standard.

For the incoming shipments, you can verify that what you receive matches what you ordered in terms of product and quantity, as well as check that all inventory has the correct barcode, packaging, and labeling before they arrive at FBA facilities.

From there, you can carry out quality control checks that’ll look at the units themselves and, among other things, inspect that:

  • Your products are in good working condition and not damaged or malfunctioning
  • Your items are all visually consistent, without blemishes, marks, or inconsistencies
  • The size and weight of the items are correct
  • All documentation is correct and everything is compliant with local laws and regulations

Be sure to complete additional tests as well like internal checks, color, smell, and even drop tests.

The thoroughness of this process also requires you to maintain good communication with your supplier. Any concerns with the quality of the product or the packaging should be brought up with them as quickly as possible to prevent future stock from having similar issues.

Invest in efficient fulfillment

The less time between someone hitting the “Buy” button and them receiving their item, the better — both for them and your business. For example, if the order takes too long to arrive or is delayed, the customer could decide they’re better off simply going to a physical store and returning your product whenever it arrives.

If you don’t use FBA to fulfill your orders, make sure your third-party provider is reliable. If tardiness becomes a pattern, you could see customers leave you for more efficient sellers.

Use high-quality packaging materials

The more money an item costs, the more upset a customer will be if it arrives in poor condition. So, make sure both product and shipment packaging are sturdy and reliable to protect items from damage during transit.

Look into high-grade bubble wrap, boxes, etc., and consider eco-friendly options to reduce your carbon footprint and appeal to environmentally conscious shoppers. If you find you’re receiving too many returns of a certain item, experiment with different price points if your margin allows.

Monitor customer reviews

Analyze customer reviews to identify any issues triggering returns. You can track feedback on Amazon, social media platforms, and other online forums.

Take charge of managing your customer experience and resolve any issues that arise. Poor communication is often the root cause of both unnecessary returns and poor reviews. So, attend to grievances promptly and effectively to ensure a satisfying experience overall and promote positivity.

Although you can’t completely stop bad reviews, you can at least keep track of them. Rather than ignoring them — which will only cause them to fester and drive away potential new customers — respond to negative feedback as soon as it arises. Remember, everyone will see how you react, so be positive, helpful, and, if need be, apologetic. Clearly convey that you’ll do everything you can to fix the problem. In this way, you can turn a poor opinion of your company into an opportunity for refinement and growth.

Review the data and spot trends

No matter how proactive your efforts, you’ll inevitably receive returns. When something is sent back, one of the most important things to do is find out why. Ask for (and actively review) feedback from customers — their opinions are your best indication of how your products perform in the real world.

Also, keep track of returns data to find any trends affecting your business. Are the returns coming from a particular geographic area? Is it during a specific time of year? Are they more likely to be returned if they’re bundles?

If you can identify the patterns, you can break the return cycle.

Introducing OnSite Support for eCommerce sellers

OnSite Support works directly with Amazon to bring their Product Lifecycle Support (PLS) program to marketplace sellers. Merchants enrolled in this program can display the Get Product Support button on their Amazon customers’ order page, which solicits direct assistance for buyers on the verge of returning a product.

This attentive support significantly reduces returns and negative reviews: Since launching the program, Amazon tracked over 350,000 monthly clicks on the Get Product Support buttons from frustrated buyers. They also reported they were able to avoid returns in approximately 68% of those cases.

Currently, only brands that participate in Amazon’s Brand Registry are allowed to join the Product Lifecycle Support program. To join the Brand Registry, you have to have a trademark or a pending trademark.

Read: Amazon Brand Protection: How to Protect Your Brand on Amazon

Wrapping up — Take a detailed approach to limit returns on Amazon

Slashing unnecessary returns can be a game changer for your bottom line. Refunds eat away at your brand’s profit, and it only takes a few returns to earn a negative ROI from a product launch.

Combine the strategies outlined in this article to cultivate smoother business operations and more satisfied customers. In turn, that improved experience will bring down the number of returns you receive and garner more positive customer feedback.

What is Seller Fufilled Prime?

Generating billions of dollars in sales, Amazon has solidified their position as a go-to platform for online shopping worldwide. Central to that success is their Prime program, a membership service offering numerous benefits, including free two-day shipping, streaming media, and more. As of Amazon’s last public report, they had over 200 million Prime members worldwide, illustrating the program’s widespread popularity and reach.

In 2015, Amazon announced a new initiative: Seller Fulfilled Prime (SFP). The program empowers third-party sellers by letting them display the Prime badge on orders fulfilled directly from their own warehouses or through a third-party logistics provider.

The program had been closed to new sellers, but will open for enrollment sometime in 2023. This signals an exciting opportunity for third-party sellers, and anyone interested should closely monitor Amazon’s updates for more information.

Source

This article will serve as your SFP primer, highlighting the program’s benefits, requirements, and considerations for prospective participants.

Understanding Seller Fulfilled Prime (SFP)

Source

SFP is an innovative program Amazon developed to expand third-party sellers’ capabilities on the platform. It bridges the gap between Amazon’s two major selling arms: the third-party Fulfilled by Merchant (FBM) selling option and the Fulfilled by Amazon (FBA) program.

At its core, SFP allows sellers to fulfill their orders directly from their own warehouses or through a third-party logistics provider, rather than sending their inventory to Amazon’s warehouses in the FBA program. Although they handle their order fulfillment, these sellers can still display the coveted Prime badge on their listings and tap into the millions of loyal Amazon Prime customers.

While FBA offers significant benefits — namely, Amazon handling storage, packaging, shipping, customer service, and returns management — sellers have to send their inventory to Amazon’s fulfillment centers to receive these advantages. This can present challenges in terms of warehousing fees, long-term storage restrictions, and the risk of stock becoming lost or damaged.

In contrast, SFP offers sellers more control over their inventory and fulfillment processes. This means they can potentially save on storage fees and better manage their stock levels. However, they’re also fully responsible for maintaining Amazon’s high standards of customer service, shipping speed, and reliability.

SFP brings its own considerable benefits for sellers, with the most noteworthy being the ability to display the Prime badge on their product listings, despite not using FBA. This can significantly increase product visibility to draw in Amazon’s massive base of Prime customers, who are known for their higher-than-average purchase frequency and loyalty. Sellers also enjoy more control over their inventory and fulfillment processes, which can lead to cost savings and more efficient operations.

Program requirements for Seller Fulfilled Prime

The SFP program has specific requirements that sellers must meet to participate. These criteria are designed to ensure Amazon’s high customer service standards are upheld, regardless of whether an order is fulfilled by Amazon or a third-party seller.

General eligibility

To join SFP, sellers must:

  • Already sell on Amazon and have a professional account. This is necessary because the program is built on Amazon’s existing seller platform.
  • Have an established track record of excellent performance, which is measured through Amazon’s Order Defect Rate (ODR). ODR is a key performance metric Amazon uses to assess sellers, and it should be below 1% for the trailing 60 days.
  • Be able to fulfill orders from all states within the country of selling and offer premium shipping options.

Performance metrics and standards

Beyond the initial eligibility criteria, SFP sellers must also continuously maintain a high standard of performance metrics. These include:

  • On-Time Shipment Rate: Greater than or equal to 99% for Prime orders
  • Order Cancellation Rate: Less than 0.5% for Prime orders
  • Valid Tracking Rate: Greater than or equal to 95% for Prime orders

Integration requirements for order management and tracking

Amazon requires SFP sellers to use Buy Shipping Services for at least 99% of their Prime orders. This service provides tracking information for all shipments, which is crucial for maintaining transparency and meeting Amazon’s performance metrics.

Minimum order volume and fulfillment capabilities

To participate in SFP, sellers must demonstrate they can handle a minimum order volume and have adequate fulfillment capabilities. Although Amazon hasn’t explicitly stated a minimum order volume, sellers should assess their capacity to ensure they can meet demand, particularly with the potential increase in sales due to displaying the Prime badge.

Additionally, SFP sellers are required to use Amazon’s approved carriers and meet Amazon’s Prime delivery speed requirements, including two-day delivery.

The SFP fulfillment process

SFP shifts the onus of fulfillment onto the sellers. Therefore, it’s critical for vendors to understand the entire process, from order receipt to shipping, to ensure they can provide the high level of service Amazon Prime customers demand.

Order fulfillment workflow

The order fulfillment process in SFP begins when a customer places an order for a Prime-eligible product. Amazon notifies the seller of the order, and the seller is then responsible for picking, packing, and shipping the product. (This is in contrast to the FBA model, where Amazon takes over after the order is placed.)

SFP sellers bear more responsibility compared to the FBA program. Key tasks include:

  • Inventory management: Sellers must keep track of their inventory levels to ensure they can fulfill all orders. This is crucial, as stockouts can lead to canceled orders and potentially harm performance metrics.
  • Order fulfillment: Sellers must have processes in place for efficient picking, packing, and shipping of products. They must be fast enough to meet Amazon’s delivery speed requirements for Prime orders.
  • Shipping: Sellers are required to use Amazon-approved shipping carriers and must meet the two-day delivery promise for Prime orders.

Sellers who participate in SFP are also responsible for their own customer service. This includes responding to consumer inquiries and handling returns in accordance with Amazon’s return policies. Providing high-quality customer service is critical for maintaining a strong seller reputation and meeting Amazon’s performance metrics.

Key considerations for sellers in SFP

While the SFP program offers significant potential benefits, it also comes with certain challenges that require careful consideration. Before joining, sellers should evaluate whether SFP aligns with their business model and capabilities.

The feasibility for your business

Carefully analyze your business’s capabilities and goals against SFP’s requirements. Can you handle the increased order volume that may result from the Prime badge? Do you have the resources and processes in place to meet Amazon’s high performance standards? Consider conducting a trial run of fulfilling orders in-house to gauge whether SFP is a feasible option for you.

Costs and fees

While SFP can save you on storage fees associated with FBA, there are other costs to consider, including expenses for shipping, returns, and packing materials. Also, remember that, as an SFP seller, you’ll be responsible for customer service, which may require additional resources.

Logistical and operational challenges

SFP sellers face unique logistical and operational challenges. Managing your own inventory, fulfilling orders, ensuring fast and reliable shipping, and handling customer service and returns require time, resources, and efficient processes. Before joining SFP, you should assess whether your business has the capabilities to tackle these responsibilities efficiently.

Maintaining customer satisfaction and performance metrics

It’s no secret that Amazon has high expectations for sellers to keep customers happy. As such, maintaining superb customer satisfaction and meeting Amazon’s performance metrics is crucial for SFP sellers. Poor performance risks losing your Prime eligibility and being suspended from selling on Amazon altogether.

Tips for successful Seller Fulfilled Prime participation

Transitioning to Seller Fulfilled Prime can open up new opportunities for your business on Amazon. However, success in the program requires meticulous planning and efficient execution. Here are some tips to ensure successful participation in the SFP program:

  • Optimize your fulfillment processes: Efficient fulfillment is the backbone of the SFP program. Consider employing strategies such as batch picking, where you pick multiple orders simultaneously, or zone picking, where you pick all items from a particular zone before moving on to the next. Streamlined packing stations, organized inventory, and reliable shipping carriers also contribute to efficient fulfillment.
  • Leverage shipping carriers and tools: Partner with reliable shipping carriers who can meet Amazon’s two-day delivery requirement for Prime orders. You can negotiate rates with multiple carriers to find the best deal. Also, leverage tools like Amazon’s Buy Shipping Services to automate the shipping process and ensure tracking information is readily available for consumers.
  • Monitor and improve performance metrics: Amazon’s performance metrics are more than requirements for the SFP program; they’re also indicators of your business’s health. Regularly monitor these metrics and take proactive steps to improve them. That might involve honing your fulfillment process, refining customer service, or managing your inventory more effectively.
  • Keep up to date on program and policy changes: Amazon is known for frequent changes and updates to their seller programs and policies. Stay informed about any changes to SFP’s requirements, policies, or new features to ensure compliance and take advantage of new opportunities.

Wrapping up — SFP is the lucrative middle ground between FBM and FBA

Seller Fulfilled Prime marks a new era in Amazon’s third-party selling landscape, offering sellers the coveted Prime badge while allowing them to retain control over their inventory and fulfillment processes. However, the program comes with stringent responsibilities and requirements. To participate, sellers must demonstrate excellent performance, manage their own inventory, fulfill orders in a timely manner, and provide top-notch customer service, all while adhering to Amazon’s stringent standards.

Before joining SFP, carefully assess whether your business is equipped to handle the program’s responsibilities and costs. That entails analyzing your fulfillment capabilities, your resources for customer service, and your ability to meet Amazon’s performance metrics consistently. If your business is up to the task, SFP can be a bountiful revenue-generation channel.

Not sure where to begin? Get in touch with MyFBAPrep — we’re skilled at helping our clients navigate every facet of Amazon selling.

How and Why to Outsource Your Amazon seller account

This is a guest post from Minhas M, an SPCTEK Amazon consultant with several years of experience in the eCommerce industry. Minhas has helped numerous businesses achieve success on the Amazon marketplace. With a passion for technology and a deep understanding of the platform’s complex algorithms, he has built a reputation as a go-to expert for businesses looking to increase their sales and visibility on Amazon.

Running a successful Amazon seller account requires dedication, expertise, and careful management. However, as your business grows, overseeing all aspects of your account can become overwhelming. At that point, it may be worth your time and money to hire a professional agency. In this article, I’ll explain why outsourcing the management of your Amazon seller account is a smart move, which tasks to pass off, and what to look for when choosing a service provider.

Why outsource your Amazon seller account?

To run an Amazon seller account effectively, you have to devote significant effort, especially as your store expands. By outsourcing the process though, you enjoy several benefits, including:

Saved time: Outsourcing tasks such as product listing, inventory management, order fulfillment, and customer service frees up time to focus on core business activities. You can concentrate on product development, sourcing, and expanding your brand while a third party handles the day-to-day operations.

Scalability: A professional service will ensure your account management scales alongside your business. These providers have the necessary infrastructure, technology, and resources to handle a large volume of products, orders, and customer inquiries, providing a seamless experience for your buyers.

Enhanced product listing optimization: Optimizing product listings for maximum visibility and conversions is critical to secure sales on Amazon. Hiring experts for this task will ensure your listings are well crafted, keyword-rich, and appealing to shoppers.

More efficient order fulfillment: Efficient order fulfillment is essential to meet customer expectations. Outsourcing the process to fulfillment centers or logistics providers can streamline operations, reduce shipping costs, and ensure timely delivery to maintain customer satisfaction and a positive business reputation.

Professional customer service: Exceptional customer service contributes greatly to a positive reputation on Amazon. When you let professionals take over, you can feel confident that all customer inquiries are addressed promptly and respectfully. These providers are trained in Amazon-specific queries, which enables them to resolve issues quickly and maintain high customer satisfaction.

Robust reporting and analytics: Professional service providers often have robust reporting and analytics tools to monitor and analyze your Amazon account’s performance. They yield valuable data on sales, consumer behavior, advertising effectiveness, and inventory management. Leveraging these analytics can help you make data-driven decisions and optimize your strategies for improved results.

Amazon account management elements to outsource

While every business has unique needs, there are some common aspects of Amazon account management that you should consider outsourcing.

Product listing optimization

If your Amazon product listings struggle to generate sales, it’s time to refine and hone them. Hiring a service to optimize your product listings ensures they’re keyword-rich, well structured, and appealing to potential customers. Expert service providers can conduct thorough keyword research, write compelling product descriptions, and strengthen titles, bullet points, and back-end search terms, resulting in improved search rankings and increased sales.

Inventory management

Efficiently managed inventory is vital to avoid stockouts and maintain a positive customer experience. Outsourcing inventory management allows you to optimize stock levels, track inventory performance, and implement effective replenishment strategies. Service providers can set up inventory management systems, forecast demand, and ensure seamless integration with your supply chain to reduce the risk of inventory-related issues.

Order fulfillment

Outsourcing order fulfillment to specialized fulfillment centers or third-party logistics providers ensures fast, accurate, and cost-effective order processing and shipping. These services have the infrastructure and expertise to handle picking, packing, shipping, and tracking so you’re assured every order reaches its destination on time and in pristine condition.

Customer service

Professional customer service companies provide prompt and efficient handling of customer inquiries, order issues, and returns. Those with expertise in Amazon-related customer support can handle a high volume of inquiries, offer multi-channel assistance, and ensure timely resolution to problems.

Advertising campaigns

Running successful advertising campaigns on Amazon requires expertise in campaign setup, optimization, and analysis. Outsourcing your advertising efforts to experienced professionals can help you maximize your return on investment (ROI). They can develop and manage targeted campaigns, optimize keyword bidding, and monitor performance to ensure your ad spend generates the desired results, ultimately boosting visibility and sales.

Review management

Building a positive review profile is crucial for establishing trust and credibility with potential customers. By handing off review management to service providers, you can monitor and respond to reviews with prompt and professional customer engagement. These third-party services can help you implement strategies to increase positive reviews, address negative feedback, and maintain a favorable reputation on the platform.

Account health and performance monitoring

Monitoring your account’s health and performance metrics is essential for uncovering areas in need of improvement and mitigating risks. Outsourced professionals will regularly review your account, identify issues, such as policy violations or performance discrepancies, and provide actionable insights to optimize performance. This proactive approach helps you maintain a healthy account and minimizes the possibility of suspension or penalties.

Competitor research and analysis

To stay competitive on Amazon, it’s crucial to understand your competitors’ strategies and market dynamics. Specialized agencies can provide valuable insights into pricing trends, product assortment, marketing tactics, and customer preferences. These insights enable you to fine-tune your strategies and differentiate your offerings to gain a competitive edge.

International expansion

Expanding your business to international Amazon marketplaces can be a complex endeavor. However, partnering with experts who are familiar with different regions’ regulations, cultural nuances, and customer preferences can streamline the process. These professionals can assist with product translation, localization, market research, and compliance.

What to look for in a service provider

When selecting a professional agency to outsource your Amazon seller account, consider the following factors:

  • Experience and track record: Look for providers with a proven history of working with Amazon sellers and delivering tangible results. Assess their client portfolio, read testimonials, and check case studies to gauge their expertise and success in managing Amazon accounts. An experienced provider will have a deep understanding of the platform’s intricacies and be equipped to handle various challenges that may arise.
  • Range of services: Verify that the service offerings align with your specific needs. Choose a provider that offers a comprehensive suite of services to cover all aspects of account management. This ensures seamless integration and consistent performance across your Amazon business.
  • Communication and transparency: Your chosen provider must maintain clear and open lines of communication. They should provide regular updates on the progress and performance of your account, be responsive to your inquiries and concerns, and designate a point of contact for you. Transparent reporting is also essential to track key metrics, assess the effectiveness of strategies, and make informed decisions.
  • Expertise in your niche or category: Different product categories have unique challenges and require specialized knowledge. Potential partners should have a demonstrated understanding of the nuances of selling within your category and be able to provide valuable insights and recommendations. Familiarity with your niche’s market dynamics, customer preferences, and competition allows them to tailor strategies and optimize performance.
  • Pricing structure and ROI: Evaluate the value a service provides compared to the cost. While price is an important factor, focus on the provider’s ability to deliver a positive ROI for your business. Assess their pricing models (i.e., a flat fee, percentage of sales, a combination) and consider the level of expertise, range of services, and expected outcomes when determining their overall value proposition. Look for providers who demonstrate measurable results.

Conclusion

Hiring a professional agency to run your Amazon seller account offers numerous advantages, including access to platform expertise, time savings, scalability, and enhanced efficiency. Careful consideration of which aspects to outsource, coupled with a meticulous selection process for a service provider, will help you unlock the full potential of your Amazon seller account and drive sustainable growth for your business.

Founder update: Small and Light and SFP

SFP, is that you?

Amazon is going to be reopening its Seller-Fulfilled Prime (SFP) enrollment later this year, which will allow for sellers to handle the fulfillment of their inventory to the customers on their own (and, importantly, maintaining the Prime badge for fast and free delivery).

SFP was first launched in 2015, but since has been deemed by many experts to be an Amazon “swing and a miss” for lacking in customer experience and seller compliance on shipping metrics.

For example, the program mandates that sellers much ship over 99% of orders on time, have nationwide delivery coverage, and have weekend pickups and delivery.

All that made SFP popular for a niche group of sellers who found it cheaper to use their own or third-party fulfillment centers.

As of late, the SFP program has been closed to new applicants to “address issues with customer expectations and provide better support for sellers.”

Some are saying that this step by Amazon is seen as a way to expand its Prime service while freeing up FC warehouse space post-Covid.

Small and Light is Dead

Last week on June 29th, Amazon announced that they are ending the Small and Light program.

Small and Light was an Amazon FBA program designed to cut fulfillment costs for products that were…you guessed it, Small and Light.

More specifically, products had to check these three boxes:

  • Weighing 3 pounds or less
  • Measuring 18 x 14 x 8 in dimensional inches (or less)
  • And be priced at $12 or under

Amazon is replacing S&L with new “Low-Price FBA rates” which will still save sellers money compared to larger size, weight, and priced items…but not to the same extent.

What sellers loved about S&L is that offered a reduced fulfillment fee, thus incentivizing wholesale sellers to carry such inventory and Private Label sellers to consider manufacturing it.

Many sellers felt that without S&L incentives, the same products would be rendered unprofitable under standard fulfillment costs.

No one is celebrating the new FBA rates for low-price products which average $0.77 lower per item than current FBA fulfillment rates.  That’s because that rate is $0.30 more than under the previous Small and Light program.

Zooming out, this change feels all-too-reminiscent to many sellers of the theme: Amazon will always deliver the lowest price to its customers, but often times at the expense of the sellers…too bad that a company with $513.983 billion in revenue can’t seem to find room to help its third party sellers out!

A Guide to Optimizing your Amazon Inventory Across Multiple Brands and Channels

Amazon’s Fulfillment by Amazon (FBA) services allows merchants to tap into a powerful logistics platform that can serve millions of Amazon shoppers. But what about customers on other platforms?

Managing inventory on this vast marketplace can be complex and challenging if you’re an aggregator who oversees multiple brands and sells through various sales channels.

Keep reading to learn about the unique logistics challenges you face managing multiple brands, along with practical solutions for optimizing omnichannel inventory management.

The complexities of inventory management

When you sell on multiple channels, managing inventory becomes complicated due to the sheer number of products, brands, and sales channels involved.

In addition to stock levels, you’re also responsible for other aspects such as seasonal fluctuations, promotions, and the impact of external factors like market trends and economic conditions.

Each sales channel will likely have unique inventory management requirements, such as different order processing times, shipping methods, and packaging standards. Consequently, you must juggle various inventory management tasks simultaneously to ensure smooth operations.

Below are the inventory management requirements for some of the most popular sales channels.

Amazon inventory management requirements

  • Adhere to Amazon’s FBA requirements, such as packaging, labeling, and product preparation
  • Comply with Amazon’s storage limits and Inventory Performance Index (IPI) thresholds
  • Understand Amazon’s fulfillment fees and long-term storage fees to minimize costs
  • Create product listings according to Amazon’s guidelines, including accurate inventory levels
  • Keep track of Amazon’s policies regarding product restrictions and prohibited items.

eBay inventory management requirements

  • Ensure accurate inventory levels to avoid overselling and order cancellations, which can negatively impact your seller performance rating
  • Adhere to eBay’s listing requirements and policies, including creating precise and accurate product descriptions and images
  • Understand eBay’s fee structure, including insertion fees, final value fees, and listing upgrade fees, to optimize inventory costs
  • Manage shipping and handling processes according to eBay’s guidelines, such as offering various shipping options and maintaining accurate shipping times

Walmart Marketplace inventory management requirements

  • Comply with Walmart’s listing and product content guidelines, including accurate inventory levels and product information
  • Adhere to Walmart’s shipping and delivery requirements, such as offering free shipping options and meeting the specified delivery times
  • Understand Walmart’s fee structure, which includes referral fees and subscription fees for fulfillment services
  • Ensure a seamless returns process in accordance with Walmart’s return policy and guidelines

Shopify inventory management requirements

FBA benefits for aggregators

Amazon FBA provides online retailers a comprehensive solution to store, pack, and ship their products. Amazon handles the entire fulfillment process on behalf of the retailer, including warehousing, order processing, shipping, and customer service.

This allows sellers to focus on other aspects of their business like marketing, product development, and brand management.

Other benefits include:

  • Access to Amazon’s extensive customer base: FBA lets you tap into Amazon’s massive customer base and enjoy exposure to millions of potential buyers.
  • Prime eligibility: FBA products are eligible for Amazon Prime, offering customers free, two-day shipping and other benefits, which can increase sales and customer loyalty.
  • Global fulfillment network: With Amazon’s extensive network of fulfillment centers, you can store your inventory closer to customers to reduce shipping times and costs.
  • Customer trust: Amazon is a trusted marketplace, so customers are more likely to purchase from FBA sellers knowing Amazon handles the delivery process.
  • Streamlined operations: As an aggregator managing multiple brands, FBA can simplify your operations by consolidating your inventory storage and fulfillment under one provider.
  • Multi-channel fulfillment: FBA can also handle order fulfillment for sales made through other channels, such as your own website or other marketplaces.

FBA challenges for aggregators

  • Cost: FBA fees can quickly add up with storage fees, fulfillment fees, and additional charges for long-term storage. As an aggregator, you’ll need to analyze the cost structure carefully and ensure it’s financially viable for your business.
  • Inventory management complexity: Managing inventory for multiple brands and products can be difficult, especially when dealing with different sales channels. You’ll need to establish effective inventory management processes and embrace inventory management software to keep track of stock levels and ensure smooth operations.
  • Amazon’s rules and regulations: FBA sellers must adhere to Amazon’s strict guidelines and policies, which include requirements for product listings, packaging, and inventory quality. Failure to comply can lead to account suspension and other penalties.
  • Limited control over fulfillment: By outsourcing your fulfillment to Amazon, you relinquish some control over the process, which can raise challenges with maintaining consistent branding and customer experiences across different channels.
  • Competition: Selling on Amazon means competing with numerous other vendors, including Amazon itself. As an aggregator, you must develop strong marketing strategies to differentiate your brands and products from the competition.

Amazon’s Inventory Performance Index (IPI)

Amazon’s IPI is a metric specific to marketplace sellers, particularly those who use FBA services. The IPI helps you measure the efficiency of your inventory management on Amazon.

While it may not directly impact inventory management across other channels, understanding your Amazon IPI still offers valuable insights that can be applied to your overall inventory management strategy.

Unlock the secrets to mastering Amazon’s IPI by diving into our detailed guide, The Amazon Inventory Performance Index Explained and How to Improve Your Score.

Multi-channel inventory management principles

Effective inventory management is crucial for successful eCommerce operations. All multi-channel retailers must focus on core principles like:

  • Stock levels: Maintaining appropriate stock levels is essential to avoid stockouts and overstocking. Stockouts can lose sales and anger customers, while overstocking can increase storage costs and risks inventory becoming obsolete.
  • Reordering: Timely inventory reordering ensures you have enough stock to meet consumer demand. Establish an efficient reorder process that considers lead times, order quantities, and safety stock levels.
  • Quality and safety standards: Your inventory must meet Amazon’s quality and safety standards. Regularly inspect your stock and remove damaged or expired items to maintain a high level of quality.

Best practices for inventory tracking and forecasting

You need to adopt effective inventory tracking strategies to manage your stock across multiple brands and channels. These include:

  • Regular stocktaking: Conduct periodic physical stock counts to verify the accuracy of your inventory records. This will help you identify discrepancies and address potential issues before they escalate.
  • Monitoring inventory levels: Keep a close eye on stock levels across all your brands and channels. This enables you to make informed decisions about reordering and allocating stock where it’s most needed.
  • Updating records: Ensure your inventory records reflect changes in stock levels, returns, and damaged items. Accurate records are crucial for effective inventory management.

Forecasting also plays a vital role in inventory management. By accurately predicting demand, you can prevent stockouts and overstocking and thus protect your sales and cash flow.

To improve your forecasting accuracy, analyze the following factors:

  • Historical sales data: Review your past sales data to identify trends, seasonality, and other factors influencing demand.
  • Promotions and marketing activities: Factor in any planned promotions or marketing activities that may affect customer demand for specific products.
  • Market trends: Keep an eye on industry developments that could influence consumer preferences.
  • External factors: Consider the impact of external factors, such as economic conditions, competitor activities, and changes in consumer behavior.

How effective are your current inventory management strategies? Your inventory turnover ratio on Amazon is a crucial KPI to monitor in this regard. Check out our Understanding Amazon Inventory Turnover article to evaluate the strength of your management.

Invest in inventory management software solutions

Consider investing in inventory management software solutions that cater specifically to aggregators. They help you track inventory across multiple channels, automate stock-level updates, and provide valuable insights for clearer decision-making.

Key features to look for in a robust inventory management software are:

  • Multi-channel integration: Choose a solution that integrates with all your sales channels so you can manage inventory from a centralized dashboard.
  • Real-time inventory updates: Opt for software that provides real-time inventory updates, ensuring you always have an accurate picture of your stock levels.
  • Reporting and analytics: Advanced reporting and analytics features reveal insights into your inventory performance and identify areas for improvement.
  • Forecasting and replenishment: Look for software with demand forecasting and automated replenishment features, as these enable you to maintain optimal inventory levels and avoid stockouts.

Inventory optimization tactics designed for aggregators

As we’ve discussed, aggregators face unique challenges when optimizing inventory across multiple brands and channels. In response, you need to employ strategies tailored to this role to streamline operations, reduce costs, and improve overall efficiency.

Consolidation

Streamline your inventory management by consolidating your supply chain where possible. This may involve negotiating bulk discounts with suppliers or centralizing inventory for multiple brands in one main warehouse.

Implement an effective SKU system

Create a unique SKU (stock-keeping unit) system that allows you to identify products across various brands easily. This tracks inventory more efficiently so you can make data-driven decisions.

Data analytics

Analyze your inventory data to identify patterns, predict trends, and detect potential issues. You can hone in on best-selling products, seasonality, and other factors influencing your stock requirements.

Automation and AI tools

Leverage automation and AI tools to improve your inventory management processes. These streamline repetitive tasks, optimize inventory levels, and forecast demand more accurately.

Cross-docking and just-in-time (JIT) strategies

Implement cross-docking and JIT strategies to reduce inventory holding costs and boost the efficiency of your supply chain.

Cross-docking involves directly transferring products from the supplier to the customer, which bypasses the need for storage. Meanwhile, JIT strategies aim to minimize inventory levels by ordering products only when necessary.

Vendor-managed inventory (VMI)

Consider adopting a VMI program, wherein your suppliers are responsible for managing and replenishing your inventory. This approach reduces the burden of inventory management while ensuring optimal stock levels.

Demand-driven material requirements planning (DDMRP)

Look into the DDMRP methodology, which combines aspects of both the traditional material requirements planning (MRP) and the JIT systems. DDMRP focuses on demand-driven inventory management to help you optimize stock levels based on customer demand.

Learn how to take control of your eCommerce inventory management and boost your business’s efficiency by exploring MyFBAPrep’s guide, How to Track eCommerce Inventory Across Multiple Channels.

Adapt to marketplace changes

As an aggregator, staying on top of fluctuating market trends and consumer behaviors is essential for long-term success. Keep yourself up to date on Amazon’s changing policies and standards and be ready to pivot when necessary.

Further, regularly review your inventory management practices and adjust them as needed to remain competitive in the evolving eCommerce landscape.

Wrapping up — Mastering inventory management as an aggregator

For aggregators, optimizing your inventory management is essential to achieve streamlined, efficient, and profitable operations.

Navigating the complexities of these duties across multiple brands and channels can be challenging. However, with the right approach and tools, you can overcome those obstacles and ensure smooth processes on all your platforms.

Embrace best practices, leverage the latest technology, and be adaptable to changing market trends to optimize your inventory management and position your aggregator business for long-term growth and success.

What is Amazon Freight and Why to Use It

an amazon truck

Over two-thirds (69%) of online shoppers are less likely to make a return purchase with a retailer if an order fails to arrive within two days of the estimated delivery date.

As an eCommerce seller, navigating the complex shipping landscape can feel daunting. With Amazon Freight, however, the journey becomes much smoother. If you’re seeking to revolutionize your shipping process, this might be the solution for you.

Understanding Amazon Freight

Amazon Freight is an Amazon service that serves as a one-stop shop for managing freight shipments. It offers an integrated platform designed to streamline and simplify the shipping process for businesses through its:

  • A network of carriers: Rather than a solitary shipper, Amazon Freight is an extensive network of partner carriers, both large and small. This network allows Amazon Freight to provide comprehensive coverage so your shipments reach any destination.
  • User-friendly interface: Amazon Freight provides a user-friendly online platform where you can manage all your freight shipments. You can easily schedule shipments, track them in real time, and manage documentation — all from one place.
  • Amazon’s logistical expertise: With decades of experience in managing complex delivery networks, Amazon brings their fine-tuned systems and processes to their freight service, ensuring reliable and efficient service.

The challenges of managing freight shipments

Due to their large size and weight, managing freight shipments can be complex and demanding, especially for eCommerce retailers that often have to handle a high volume of orders.

Below are some of the most common challenges online sellers face with this type of fulfillment.

Variable shipping costs

One of the significant challenges in freight management is the variability of shipping costs.

Factors like fuel prices, demand, supply conditions, and weather can affect your rates. This unpredictability makes it challenging to manage costs and maintain profitability.

Complex logistics

Organizing the logistics of freight shipments warrants its own job role. It involves coordinating with various carriers, handling documentation, and ensuring compliance with regulations.

This complexity can be a significant challenge, especially for smaller retailers that need more resources or expertise to manage logistics effectively.

Timely delivery

Delays can occur for various reasons, from weather conditions to issues at port or customs. These roadblocks can hurt customer satisfaction and harm your business reputation.

Inventory management

Overseeing inventory is crucial to efficient freight management. You need to ensure you have sufficient stock to meet customer demand, but at the same time, you want to keep your capital manageable. Balancing these requirements can be a significant obstacle.

Tracking shipments

Without accurate, real-time tracking, it’s difficult to keep customers informed about the status of their orders. It also inhibits you from managing your inventory and planning for future shipments.

Ensuring product safety

The safety of your products during transit is a major concern for fulfillment in general. Goods can be damaged due to improper handling, accidents, or adverse weather conditions. This, then, results in financial losses and dissatisfied customers.

Compliance with regulations

Freight shipments have to comply with a myriad of regulations, both domestic and international. These rules can be complicated and frequently altered, making compliance a frustrating undertaking.

However, non-compliance can result in penalties and may disrupt your shipments.

Managing returns

When customers return products, you need to handle the reverse logistics, which can be complex and costly. You also need to inspect the returned products and decide whether you can resell them, which is time-consuming.

These points highlight the complexity of managing freight shipments and the need for significant expertise and resources. In this regard, Amazon Freight can be a game-changer. The service can help you avoid issues and streamline your shipping processes by providing a comprehensive solution for managing freight shipments.

The advantages of Amazon Freight

Amazon Freight has revolutionized the freight industry, offering a unique blend of efficiency, reliability, and cost-effectiveness. From small businesses to large corporations, many have found considerable value in adopting this service for their shipping needs.

With its extensive network, competitive pricing, and seamless integration with other Amazon services, there are many advantages that make this option worth considering.

Cost savings

Finding ways to cut costs and boost profit margins is critical as a retailer, and Amazon Freight can help you achieve those goals.

You enjoy discounted shipping rates thanks to Amazon’s extensive network and negotiated deals with multiple carriers. This perk yields considerable savings, making your shipping processes more cost-effective and expanding your bottom line.

Flexibility

Unlike other shipping services that might limit you to a particular set of carriers, Amazon Freight allows you to choose the one that best aligns with your requirements.

Be it price, transit time, or other considerations, you’re in the driver’s seat to select the most suitable shipping solution. That flexibility ensures your shipments arrive on time and at the most cost-effective rate.

Convenience

Amazon Freight simplifies the organization and management of shipments by providing a unified platform for all your freight shipments.

You simply input your shipment details, and the service handles the rest. This convenience can free up your time so you can focus more on your business.

Real-time tracking

One of the standout features of Amazon Freight is its real-time tracking for all your shipments. This capability keeps you — and, in turn, your customers — up to date on the status of your deliveries, offering peace of mind for all parties.

Reliability

In addition to savings and convenience, Amazon Freight also brings reliability to your logistical operations. Your shipments are secure throughout the transit process, and, using reliable carriers and strict security protocols, your goods arrive in perfect condition.

Looking for other ways to boost the resilience of your eCommerce logistics? Check out our article on how to build resilient fulfillment operations.

Amazon Freight’s features

To appreciate the full capabilities of Amazon Freight, let’s delve deeper into some of its key features:

  • Competitive rates: Amazon Freight’s competitive rates are one of its most attractive features. Amazon negotiates rates with various carriers to secure lower costs, which they then pass on to users. This perk can result in significant cost savings, especially for businesses that frequently ship large quantities of goods.
  • Customizable options: Amazon Freight provides a range of customizable options for your shipments. You can choose the type of service you need (full truckload or less than truckload), the type of equipment required, and even the transit time. This flexibility allows you to tailor your shipping solution to your specific needs.
  • Simplified documentation: Shipping documentation becomes a breeze with Amazon Freight. The platform allows you to create and manage bills of lading, freight invoices, and other essential documents with ease. This capability reduces the time and effort involved in managing paperwork so you can focus on other aspects of your business.
  • Efficient claims process: In case of any issues with your shipment, Amazon Freight provides a hassle-free claims process that lets you easily submit claims and track their progress. That transparency contributes to the quick and efficient resolution of any problems.

The MyFBAPrep advantage

As an invite-only partner of Amazon Freight, MyFBAPrep gives merchants access to all the benefits of Amazon Freight. That includes detailed tracking, a dedicated account representative, Amazon’s trusted service commitment, and more.

  • Detailed tracking: Amazon Freight provides detailed, end-to-end tracking of your shipments to keep you up-to-date on the status of your goods at all times. This provides peace of mind and enables more strategic planning and management.
  • Dedicated account representative: With MyFBAPrep, you receive support from a dedicated account representative. Your rep will help you navigate the complexities of freight shipping to maximize your Amazon Freight experience.
  • Amazon’s service commitment: Leverage Amazon’s guaranteed exceptional service. With the platform’s robust systems and processes, you can rest assured your shipments are in good hands.

Amazon Freight FAQs

What can you ship?

Amazon Freight supports the transportation of most goods that can be shipped via 53-foot dry van equipment for immediate pickup and delivery.

However, there are certain exceptions, including hazardous materials (HAZMAT), items that need refrigeration, and other prohibited goods.

Where can you ship?

Amazon Freight boasts extensive coverage across thousands of lanes throughout the United States, specifically in regions where Amazon has an established presence.

Whether you need to ship inbound to Amazon, your own facilities, or third-party locations, Amazon Freight ensures reliability and top-notch performance. To better understand the U.S. coverage zones, you can view a map here.

The service also boasts coverage in several European countries, including Germany (excluding the North Sea and Baltic Sea islands), Poland, the Czech Republic, France, Italy, Spain, Belgium, the Netherlands, and Luxembourg. Coverage is also available across the United Kingdom, except for the Scottish Highlands.

How does Amazon Freight choose its carrier network?

Amazon Freight puts every carrier in its network through a rigorous screening process to comply with Amazon’s strict standards. The process encompasses aspects such as insurance, operational authority, and safety.

The service also continually keeps tabs on carriers’ punctuality records. Amazon regularly augments their network with new carriers to provide competitive rates regularly and broaden coverage.

Choosing a fulfillment provider on your own? Check out MyFBAPrep’s list of 10 critical questions to ask before choosing your fulfillment provider

Can you track your shipments with Amazon Freight?

You can use Amazon Freight’s online tools and self-managed transportation system to oversee your shipments as needed.

Trailers come fitted with GPS technology, and, by using the Amazon Relay app, carriers and drivers can offer real-time visibility into the status of your shipments.

Wrapping up — Amazon Freight is a game-changer

Efficient and dependable shipping is vital in the competitive eCommerce environment. With Amazon Freight, you gain a shipping solution that provides significant cost savings, flexibility, convenience, and reliability.

By leveraging Amazon’s logistics expertise and vast network of carriers, you can feel confident your shipments will reach their destination on time and in perfect condition. The user-friendly platform simplifies the shipping process, allowing you to manage all your shipments from one place.

Add on the extensive benefits of MyFBAPrep, and you can further refine your shipping operations. From 24/7 tracking to a dedicated account representative, MyFBAPrep has the tools to help you make the most of the Amazon Freight service.