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

• Manage inventory levels and sync them across sales channels, as Shopify allows you to sell on different platforms like Facebook, Instagram, and Amazon
• Comply with Shopify’s product and content guidelines, including accurate product information, images, and pricing
• Select and integrate the right shipping and fulfillment options, including third-party logistics (3PL) providers or in-house fulfillment
• Understand Shopify’s fees, including subscription fees, transaction fees, and payment processing fees

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.

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.

This is a guest post from Ryan Flynn. Ryan is the founder and CEO of Charmac, a digital marketing agency that helps retail-focused brands reach more customers on Amazon. Charmac provides content creation and done-for-you account management solutions to help you succeed in the Amazon marketplace. Whether you need a new or refreshed product page or are ready to outsource the day-to-day of Amazon, the experts at Charmac can help. They specialize in creating high-converting content that matches your brand and can strategically manage advertising, reviews, inventory forecasting, and more. To learn more, visit Charmac.com.

Are you looking to take your eCommerce business to the next level? Whether you are already selling on Amazon or planning to, you have to look at FBA and what it can do for your business. This article will show you what FBA is, how the fees work, and how you can reduce your overall cost of using the service. Read on to get started.

What is FBA and why you should use it

Let’s start with the basics. To begin, FBA is an acronym for Fulfillment by Amazon and represents a service that Amazon offers to let you quickly and efficiently fulfill online orders.

As anyone with an eCommerce business knows, picking and packing customer orders takes significant time, effort, and money. FBA allows you to outsource this work to Amazon. Instead of sending out every single package, you send your inventory in bulk to Amazon warehouses. Then, when a customer makes an order, Amazon picks, packs, and ships the items.

Using FBA gives you, as the seller, several significant benefits:

Access to Prime and Amazon’s logistics network

The first thing FBA allows you to do is offload your fulfillment capabilities to Amazon, a dedicated solution to your business that knows how to do fulfillment right. In addition, FBA lets you take advantage of Amazon’s vast warehouse and delivery network.

Amazon’s fulfillment capabilities are remarkable since the company is as much a master of logistics as it is of eCommerce. By tapping into FBA, you tap into Amazon’s entire logistics infrastructure — a network of hundreds of warehouses located strategically throughout the United States and interconnected by a whole fleet of trailers, rail cars, and planes.

Easy flat-fee structure

Traditional carriers like FedEx or UPS often rely on zone-based pricing. This pricing model means the cost of sending a package can vary widely, depending on the destination. Unfortunately, this structure also makes it challenging for sellers to forecast their fulfillment costs accurately.

FBA takes much guesswork out of the equation by charging a flat fee, regardless of where the item is now and its final delivery point. Whether the product is going from New Jersey to Oklahoma or Florida to Montana, you, as the seller, will pay the same fulfillment cost. This pricing structure makes it much easier to understand and estimate your costs.

Better visibility on Amazon’s website

Using FBA also boosts your ability to sell on Amazon. Sellers who use FBA will rank better in Amazon’s search results than sellers who fulfill the items themselves.

Why does Amazon give sellers who use FBA an advantage? Many customers who shop on Amazon like to take advantage of Amazon Prime’s two-day (or sooner) shipping service. Thus, to cater to those customers, items delivered through Amazon are shown first — while items from sellers who ship from other warehouses are pushed farther down on the results page. If you’re using FBA, the products you sell are more likely to be seen first and, as a result, bought first.

Now that you know the benefits of FBA let’s get into the practical details of how to use it for your business.

Getting your products into Amazon warehouses

To start using FBA, you have to get your inventory to Amazon. Whether your products are currently at your manufacturer, co-packer, 3PL, prep partner, or logistics partner, you need to send them to Amazon’s network of warehouses.

That generally means choosing a delivery service to move your items. Here are the main options you have to pick from:

Small parcel versus LTL/FTL

When deciding how to send your products to Amazon, you need to consider three key factors:

• How much space do your products take up?
• How long are you willing to wait before your items start selling?
• How much do you need to send in?

If your products are light and don’t take up much room, shipping them via small parcel carriers like UPS might be the best option. This method will get your items over to Amazon quickly — and checked in quickly on Amazon’s end too.

However, if your products are heavier or more voluminous, you’ll save on delivery costs by selecting the LTL (less than truckload) or FTL (full truckload) option. With this method, your products must be palletized and loaded onto a trailer that eventually makes its way to an Amazon warehouse. If you have a significant quantity of items, this option will be more cost-efficient than sending them in small parcels. It will, however, also be the slower option, sometimes taking a week or two for delivery and check-in at the destination.

The best scenario is for you to calculate the higher costs of sending by small parcel against the longer timeline required for an LTL or FTL shipment. If you are already selling at scale and are consistently replenishing inventory at Amazon, LTL or FTL is your best long-term option. However, if your inventory levels are getting dangerously low at Amazon, it may be worth paying more to send in a limited quantity via the small parcel service for replenishment and send larger LTL or FTL shipments simultaneously.

Independent carrier vs. Amazon partnered carrier

Whether you opt for small parcel delivery or LTL/FTL, you’ll need to decide if you want to go with an Amazon-partnered carrier or a carrier unaffiliated with Amazon.

Choosing an Amazon-partnered carrier can streamline the process of getting your products to Amazon and often lower the costs. This is because Amazon’s partnered carrier network has existing relationships with the company and offers you negotiated rates that help reduce your costs.

In the case of small parcels, Amazon’s partnered carrier is UPS, which offers competitive, pre-negotiated rates to ship to Amazon warehouses. On the FTL or LTL side, Amazon works with many freight carriers that offer competitive rates. An additional benefit of working with an Amazon-partnered carrier is that you don’t have to worry about setting up delivery appointments because partners have pre-set appointments with Amazon. I recommend sticking with Amazon’s partnered carriers when going the FTL or LTL route because this makes the process much smoother for all involved.

Once your products are in Amazon’s warehouses, it’s time to start selling. So next, we’ll discuss clever tips for keeping your FBA fees as low as possible.

How Amazon determines an item’s FBA fees

Amazon determines the FBA cost of an item based on size and weight. This means the length, height, and width of your product — as well as its weight and dimensional weight. Knowing how to minimize these can keep fees low.

Be strategic about package design

Standardizing your packaging across all channels is the norm if you run a retail business in addition to an eCommerce one. However, optimizing your eCommerce packaging could save you a lot on fulfillment costs. The same product with a different packaging that’s smaller or weighs less could end up putting your item in a less expensive size tier in terms of FBA fees, making a significant difference on your bottom line.

Thus, it pays to check your product’s dimensions and weights against the size tiers listed on Amazon’s website. If Amazon is a significant channel for you, consider these size tiers in every part of your business process, from product design and development to packaging materials.

Consider multipacks and bundles

A strategy is essential when building multipacks and bundles for your products too. Using Amazon’s FBA size guidelines, ensure you put your items together in the most size-efficient way, taking up as little room as possible. Resist the urge to throw your products in a larger box, but instead pack them in a perfectly-sized box or poly bag that takes up less space, reducing your FBA fees.

Auditing your FBA fees

You must conduct a regular audit to keep your FBA fees in check. Luckily, Amazon Seller Central makes this process relatively simple. Here’s how to get started.

Check the Amazon reports

The first step to auditing your FBA fees is downloading your report from Amazon. In Amazon Seller Central, head to the “Reports” section and select “Fulfillment.” Once you get there, look under the “Payments” section on the left-hand side and click on the “Fee Preview” report.

The Fee Preview report is one that Amazon typically runs automatically for you daily. I recommend downloading the latest one as a CSV file, so you can easily pull it up using Excel or Google Sheets. Once you open the file, you can see all the products you sell through Amazon. You’ll also be able to see what Amazon has on record as the weight and measurements of each item.

Now it’s time to audit your products. Verify that Amazon’s record of each product reflects your actual product weight and dimensions. While the measurements don’t have to be exact, they should be close to your records. Once in a while, Amazon mismeasures the length of a product or miscalculates the weight. If this has happened to any of your products, take note of it and go on to the next step.

Ask Amazon to remeasure and reweigh the item

If you determine from the “Fee Preview” report that Amazon’s record of your product’s weight and dimensions is incorrect, take the necessary steps to correct it.

First, navigate to the “Help” tab on Amazon, scroll to the bottom, click “Get Support,” and then “Selling on Amazon.” Once you get to that page, you’ll be able to describe the issue you’re having. Typing in a phrase like “FBA fee” will prompt Amazon to ask if you’re having a problem with FBA product weights and dimensions. Confirm this is indeed your issue.

At this point, type in the ASIN or FNSKU of your item into the search box and hit “Next.” Amazon will then restate the package dimensions and weight and your current fulfillment fees. You’ll then be able to request product remeasurement and reimbursement for incorrect order fees.

Amazon limits the number of times you can request remeasurements due to sellers abusing this service in the past, so ensure your product has been weighed or mismeasured before asking Amazon to measure again. Once you submit the request, Amazon will have a worker remeasure and reweigh your item on a Cubiscan machine.

If Amazon determines that the previous measurements were incorrect, they will change your FBA fee to reflect the correct weight and dimensions. Sometimes, Amazon will automatically reimburse you for overcharged fees; other times, you’ll need to request reimbursement. The timeline for how quickly such issues get resolved can vary, but I recommend auditing your fees monthly to ensure they are correct.

How to reduce your FBA fees

After you’ve audited your FBA fees, you still have two opportunities to continue reducing them:

Optimize inbound deliveries

Lower your cost of selling by optimizing the products you send to Amazon’s warehouses. Determine how to make your shipments to Amazon as dense as possible while still staying within Amazon’s requirements: 50 pounds max per box on small parcel shipments through UPS ground and 1,500 pounds for an LTL/FTL pallet that’s no more than 72 inches high.

You can also save money by changing your seller settings to let Amazon decide where to send your inventory instead of the location closest to the source. In Seller Central, under “Settings,” go to “Fulfillment” settings, then “Fulfillment by Amazon.” Once there, go under inbound settings and ensure the “Inventory Placement Option” is “Distributed Inventory Placement.” Choosing this option will prevent you from paying added fees per item.

Ensure prep is done perfectly

A second way to reduce FBA fees is by prepping your items correctly before they arrive at Amazon. While Amazon can do prep work, that extra work comes at an additional cost. Have your manufacturer or a dedicated prep center take care of this to save money and time.

Because Amazon has a vast logistics network, they have a standardized prep process for different types of items. Make sure you follow these to a tee. If you prep your items incorrectly, they will not pass the break test or may need to be sent back for adjustments — in which case your inventory will become unfulfillable, requiring you to remove, re-prep, then return the items to Amazon, all at your cost.

Changes to Amazon FBA fees in 2023

Starting in January 2023, Amazon has adjusted their FBA program. Due to the global economic downturn, the company has thoroughly revised their FBA fees.

To address the issue of unproductive utilization of FBA and the accumulation of unsellable goods that congest Amazon warehouses, new fees related to storage utilization ratio and aged inventory were implemented in April. These fees aim to reduce the amount of working capital tied up in holding costs.

Let’s take a look at the biggest changes to Amazon FBA fees.

The Fuel & Inflation Surcharge is now permanent

Initially introduced as a temporary measure to address evolving economic conditions, the Fuel and Inflation Surcharge is now permanently installed in Amazon’s FBA fees.

Despite expectations for a decline in costs associated with fuel and inflation, these expenses have failed to decrease as rapidly as anticipated. So, rather than maintaining the surcharge as a separate entity, Amazon altered their standard FBA rates to incorporate these additional charges.

FBA fee structure changes

To address concerns about storing products that don’t sell well, Amazon implemented the following changes:

• FBA outbound fee rates increased by an average of $0.22.
• Returns processing fee rates in the apparel and shoe categories were reduced by $0.20 per return.
• Monthly off-peak FBA storage fees between January and September each year increased. Fees for standard-sized products increased $0.04 per cubic foot, while those for oversized products rose $0.03 per cubic foot.
• A Storage Utilization Surcharge was introduced for sellers with a high cube of inventory in Amazon warehouses compared to their weekly sales.
• The surcharges for inventory stored between 180 and 270 days (excluding apparel, shoes, bags, jewelry, and watches) went up.
• Removal and Disposal fees also increased.

Referral fees

Regardless of the category you sell in, the referral fee for your products remains the same. However, certain fee categories within the Collectibles space were discontinued.

Products previously classified under categories such as Collectible Coins, Entertainment Collectibles, Sports Collectibles, and Collectible Cards had their fees eliminated and were transferred to the most suitable category.

Expansion of the Small and Light Program

By enrolling in Amazon’s Small and Light Program, you can ship eligible products worldwide, benefiting from reduced fulfillment expenses and providing free shipping to your customers.

Notably, the program fees have recently lowered, now ranging from $10 or less instead of the previous $12 starting price.

U.S. FBA New Selection Program

The U.S. FBA New Selection Program now has reduced fees. This program aims to support brands in launching new products on the marketplace, making the process easier and more cost-effective.

Sellers who register for this program can enjoy free storage, liquidations, and return processing for a limited period.

With these changes, sellers who join the FBA New Selection Program will see an increase in rebates from 5% to 10% on new-to-FBA parent ASINs (Amazon Standard Identification Numbers). This boost translates to savings of 5% for participating sellers.

Wrapping up — Ready for FBA

The sooner you take advantage of FBA’s many benefits, the faster you can remove some of the burden of fulfilling products yourself. With proper planning, you can optimize your selling experience on Amazon for greater efficiency and profit.

Published: November 24, 2022
Updated: May 24, 2023

Becoming an Amazon seller lets you tap into the platform’s 300 million customers. Also, opting in to the company’s FBA program gives you access to its many benefits that go beyond fulfillment. However, joining this circle means you’ll have to contend with Amazon’s plethora of fees.

In this guide, we’ll help you understand and navigate them, share some ways to minimize the charges you incur, and introduce a few tools to monitor your expenses easily.

Core Amazon selling fees

Let’s first discuss the core fees every Amazon seller will incur throughout their time on the platform. It’s important to note each one is charged once a customer’s order ships.

Referral fees

Amazon automatically deducts a referral fee percentage, which is calculated based on your item’s total sales price. The total sales price, or the full amount your buyer pays, includes:

• Your product’s price
• Delivery charges
• Gift wrapping charges

Take note, however, that it excludes taxes calculated via Amazon’s tax calculation services.

Rates

Referral fee rates can range from 6% to 45%, depending on the product category, and average around 15%. In certain cases, there may be a minimum charge per unit of $0.30 up to $2:

• Amazon Device Accessories: 45% rate; $0.30 minimum fee
• Amazon Explore: 30% rate for Experiences; $2 minimum fee
• Gift Cards: 20% rate; no minimum fee
• Watches: 16% for the portion of the total sales price up to $1,500 and 3% for any portion of the total sales price greater than $1,500; $0.30 minimum fee

Unsure how to classify your products? For a full list of product categories, sign in to Seller Central and go to Amazon’s fee category guidelines.

Sample calculations

Let’s say you sold something under the Amazon “Device accessories” category for $50 at $5 shipping and $1 for gift wrapping. Your total sales price is $56 with a $25.20 referral fee. As a result, you’ll receive $30.80 while Amazon keeps the rest.

Meanwhile, if you sell an order with a referral fee that’s less than the minimum, you have to pay $0.30.

Selling plan fees

Amazon’s selling plans are straightforward: You’ll either be charged a per-item selling fee or a monthly subscription fee. Merchants can choose between the Professional or Individual selling plans.

Professional plan

You pay a flat $39.99 per month, which Amazon bills starting from the date of your subscription and on the same day for subsequent months.

So, if you enroll on the 15th of the month, you’ll always be charged on the 15th. But, if you cancel on the 15th, you’ll still be charged for that entire month.

Individual plan

The Individual plan has no monthly subscription fee; you pay a fixed rate of $0.99 for every item sold, charged once the customer’s order ships. For example, selling three items earns you a $2.97 fee.

Closing fees

Amazon also charges a flat $1.80 per media item you sell in addition to any other applicable fees. Closing fees pertain to the following categories:

• Books
• DVD
• Music
• Software & Computer/Video Games
• Video Game Consoles
• Video Game Accessories

Say you sell a video game on Amazon for $40. Applying the 15% average referral fee, that’s $6 right off the top, along with the closing fee of $1.80. So, in total, you pay $7.80 in fees for each game you sell.

Core FBA fees

In addition to Amazon’s core seller fees, those who use FBA will incur the program’s associated charges. Note that Amazon introduced new FBA fees in early 2023, which we’ve reflected below.

Fulfillment fees

FBA’s fulfillment fees are the primary expenses you sustain as a member of the program. They’re charged per unit once your customer’s orders are shipped, and they vary based on an item’s product category, size, and weight.

However, the calculations featured below may vary for products enrolled in FBA Small and Light or Multi-Channel Fulfillment. So, check their respective pages to make sure.

How fulfillment fees are calculated

Here’s a step-by-step guide for determining your expenses.

Step 1: Check your product’s category

Since Amazon handles rates according to their various product categories, before starting your computations, make sure you:

• Check Amazon’s fee category guidelines to see if your product is considered apparel
• See if your item should be sold through FBA’s Dangerous Goods program by checking the identification guide

Step 2: Determine your item’s size tier

Product size tier is a measurement category based on your item’s:

• Volume
• Dimensions
• Unit weight
• Dimensional weight*

To find the girth, add the shortest and median sides and multiply the result by two.

Determine these measurements first, then consult the Fulfillment fee table. Select the row your item’s weight or dimensions fall within (and don’t exceed).

*Use unit weight for standard-size products that weigh 0.75 lbs or less and special oversize products. Use the larger measurement between single unit weight or dimensional weight for all other products.

Step 3: Calculate your item’s shipping weight

This is your item’s rounded weight. It’s calculated using either your product’s unit weight or dimensional weight, and determining which one to include is based on your product’s size tier:

• For small standard-size and special oversize: Use unit weight. Items weighing less than 1 lb are also calculated by rounding up to the nearest whole ounce.
• For remaining size tiers: Use either unit weight or dimensional weight*, whichever is larger. These apply to apparel items that weigh more than 12 oz and all non-apparel items. You’ll also compute by rounding up to the nearest whole pound.

*To find dimensional weight, calculate your item’s volume (length x width x height) and divide it by 139. For oversized items, assume a minimum width and height of 2 inches.

Step 4: Find your rates

Imagine you sold a mobile device case with the following specifications:

• Dimensions: 12 x 8 x 0.5 in
• Unit weight: 2.75 oz
• Rounded shipping weight: 3 oz

This item would fall under “Most products” item type, the “Small standard” size tier, and the “4 oz or less” shipping weight categories. Your resulting fee for that unit would be $3.22

Let’s say your customer ordered a television — which is considered a non-dangerous good — with these characteristics:

• Dimensions: 57 x 36 x 4 in
• Length + girth: 137 in
• Dimensional weight: 59.05 lb
• Unit weight: 51 lb
• Rounded shipping weight: 60 lb

The above specifications mean the TV would fall under the “Large oversize” tier and the “150 lb or less” shipping weight. Since it doesn’t exceed 90 lb, the resulting per-unit fulfillment would be $89.98.

Monthly inventory storage fees

These are charges for the space your inventory occupies in Amazon’s fulfillment centers. Your monthly inventory storage fees, which are typically billed between the 7th and 15th days of the month after the fees were incurred, are based on:

• Your daily average volume in cubic feet, which depends on your product’s size when properly packaged and ready to ship
• Your product’s size tier and the time of year

If your inventory is classified as dangerous goods, your fees will be assessed differently.

Example

Amazon uses this formula to calculate your fee per product: Average daily units x volume per unit x applicable rate.

Now, imagine your product has these characteristics:

• Classification: Non-dangerous good
• Current month: October
• Size tier: Oversize
• Average daily units in storage: 3
• Volume per unit: 20 cubic feet

Your calculation will be 3 average daily units times 20 cubic feet per unit times $1.40 per cubic foot in October, which totals to $84 in monthly storage fees.

Aged inventory surcharge

You incur these charges in addition to the previously mentioned monthly fee if you have any inventory sitting in Amazon’s fulfillment centers for 181 days or more. (This excludes apparel, watches, shoes, and jewelry categories.)

Aged inventory surcharges are calculated per unit stored and are based on whichever is greater: volume ($6.90 per cubic foot) or a flat rate ($0.15 per unit).

Examples

We’ll use the toy example. Here’s how you get the applicable cubic-foot fee:

1. Calculate your item’s volume: 11 x 8 x 2 inches = 176 cubic inches.
2. Divide it by 1,728 to convert it to cubic feet.
3. Multiply your answer by the “$6.90 per cubic foot” fee.
4. You’ll then get your applicable cubic foot fee per unit, which is $0.70.

The applicable per-unit fee is simply the $0.15 flat rate. Then, Amazon will bill the larger of the two values. The same principle applies for the book example.

Other considerations

Every 15th of the month, Amazon assesses your long-term storage fees through an inventory snapshot. They’re also usually charged between the 18th and the 22nd.

Additionally, FBA computes your inventory age on a first-in, first-out basis. So, if you sell or remove an item, no matter which unit it was, it’s deducted from your inventory that’s been in Amazon’s fulfillment network the longest.

FBA disposal order fees

These are charged when you request Amazon to dispose of items in your FBA inventory that are stored at their fulfillment centers. Your FBA disposal order fee depends on your product’s size tier and shipping weight. It’s also charged per unit disposed.

*Special handling items may include apparel, shoes, watches, jewelry, and dangerous goods.

Examples

Here are some sample computations for the two size tiers.

Standard size item

Let’s say you request for the disposal of three standard-sized units, each having a shipping weight of 1.76 lb.

Each unit’s shipping weight will be rounded up to 1.80 lb, which falls in the “1.0+ to 2.0 lb” row.

This results in a $2.20 per-unit disposal fee, so your total fee will be $6.60.

Oversize item

Imagine you requested the disposal of two oversized units, each with a shipping weight of 11.4 lb.

Each unit’s shipping weight will be rounded up to 12.0 lb and classified in the “More than 10.0 lb” row.

You’d calculate your per-unit disposal fee as $13.05 (for the first 10 lb) plus $2.12 (for the extra 2 lb).

Each unit would have a $15.17 charge, resulting in a total fee of $30.34.

Other fees

Now, we’ll introduce expenses you can incur on top of the core Amazon selling and FBA fees.

Refund administration fee

This is charged when you refund your customer for an order where you’ve already been paid. Amazon will reimburse the referral fee, but will also deduct an applicable refund administration fee.

It’s charged per unit returned, and the rate is either a percentage of the transaction refunded or a flat rate.

Note: See if your product falls under the “Book, music, video, and DVD” category, as Amazon handles the fee for these items differently. Also, for all other product types, the maximum refund administration fee is $5.

Special handling fee

Amazon’s special handling fee specifically applies to televisions with 42-inch or larger screens. However, smaller TVs could also possibly earn this fee (due to factors like weight and fragility).

A single, fixed rate of $40 is charged for each unit once your customer’s order is fulfilled. Also, your screen’s dimensions are measured diagonally between opposing corners.

Rental book service fee

This is a simple fee where you pay a fixed rate of $5 for each book you rent to a customer.

Lithium batteries fee

You’ll be charged an $0.11 per-unit fee for lithium batteries and all FBA items that contain or are sold with them. If, for example, you sold four LED flashlights that include lithium batteries, a lithium battery fee of $0.11 would be applied per unit, meaning you’d pay a total of $0.44.

Returns processing fee

The returns processing fee applies to product categories where Amazon offers free return shipping. It’s charged for each customer-returned item in the “Apparel and shoes” categories, but not for items returned in “Watches, jewelry, luggage, or handbags & sunglasses.”

After being returned to Amazon’s fulfillment center, the item’s condition is assessed. Once that’s done, the fee incurred is based on Amazon’s rate card.

Read: Reverse logistics best practices

High-volume listing fee

Amazon charges this fee to cover costs associated with cataloging and maintaining a large number of SKUs.

The high-volume listing fee is simple: Amazon charges a fixed rate of $0.001 per active SKU over 1.5 million. So, let’s say you have 1,750,000 active SKUs. Your fee will be calculated as 250,000 x $0.001 = $250.00.

If your total number of active SKUs is less than or equal to 1.5 million, you don’t pay a fee. It’s charged on every first day of the month and is based on the highest number of active SKUs from the 5th to the 31st.

FBA removal order fee

You’re charged a one-time FBA removal order fee for every unit of inventory you request to be withdrawn from Amazon’s fulfillment centers. The fee, which is based on your item’s size and shipping weight, is incurred once the removal order is complete*.

*Processing the removal order for the shipment leaving the fulfillment center can take 90 days or more. Carrier delivery can take an additional two weeks.

Advertising fees

If you want to boost your products’ visibility and sales on the platform, Amazon has different advertising options. The cost to promote your products within Amazon’s search varies depending on their categories. They’re also prone to seasonal fluctuations.

However, what’s most important to know is that advertising is calculated on a cost-per-click (CPC) basis. That means you only have to pay when your products are clicked.

Read: Amazon Advertising Guide

How to lower your fees

When selling on Amazon, there are multiple strategies you can implement to lower your costs.

Choose the right selling account

Opt for an Individual selling plan if you sell less than 40 items a month. It takes more than 40 monthly Amazon sales to offset the Professional selling plan’s $39.99 subscription fee.

On the other hand, if your monthly sales exceed 40 items, having a Professional plan lets you avoid the $0.99 per-listing fee. You’ll also gain access to:

• A suite of order and inventory management tools
• The ability to promote your products and boost your profit
• The potential to unlock unlimited inventory storage as a Professional seller

Don’t exceed your storage limits

Stay on top of your inventory, because going over your storage limits subjects you to a monthly FBA inventory storage overage fee. This is based on your average daily volume at $10 per cubic foot and is charged for any excess space your inventory occupies in Amazon’s fulfillment centers.

Check your storage limits and how much you currently use in the Capacity Monitor, found either on your FBA dashboard or in the Shipping Queue. If your on-hand inventory exceeds your storage limit, Amazon will give you a heads-up. If you’re over your limit for each storage type,  you’ll incur inventory storage overage fees.

Minimize slow-moving inventory

This is an effective strategy for avoiding Amazon’s monthly inventory and long-term storage fees. Storing products with higher demand, like clothing and apparel, ensures you’ll seldom have items sitting in Amazon’s fulfillment centers for too long. Typically, fast-moving items also occupy less space.

You can still store slow-moving goods like expensive appliances and electronics. Just make sure to monitor your inventory turnover closely and keep a healthy mix of products in your inventory.

Curate your items or diversify your channels

Being strategic about what you sell on Amazon can reduce your referral fees as well as other expenses like closing, fulfillment, and monthly storage fees.

For example, you could sell items that incur lower fees on Amazon. Then, for products that accrue higher charges on the platform, you can try other marketplaces — like Walmart or eBay — where your expenses would potentially be lower.

Boost your sales

More sales doesn’t necessarily mean fewer expenses, but it does help offset them. Having a thriving Amazon business can easily make up for the platform’s numerous fees.

A helpful way to increase your profitability on Amazon is to opt in to Fulfillment by Amazon (FBA). According to the company’s 2021 Small Business Empowerment Report, sellers see a 20%–25% increase in sales after joining the program.

Free tools

Lastly, Amazon provides several useful tools to help its sellers traverse their fees.

Fee estimation

• Revenue Calculator: Use this tool to estimate your fees and profit (it’s based on fulfillment channels).
• Fee Preview report: This shows your estimated selling and fulfillment fees for your current listings.
• Estimated fee per unit sold: This tool lets you preview your core selling and FBA fees when a specific SKU unit is sold.
• Referral Fee Preview report: With this report, you can view your estimated referral fee based on your current listed item price.
• GetMyFeesEstimate API: This API returns the selling and fulfillment fees for a given list of products.

Reviewing fees paid

• Amazon fees card: This displays the fees charged for a SKU over time.
• Payments summary: You can access information on various payments, including fees, on this summary page. Linked reports also provide a per-transaction breakdown of fees paid.
• Fee explainer: This shows you how your selling fees for specific transactions were calculated.
• Monthly storage fees report: This lets you see estimates for each of your Amazon Standard Identification Numbers (ASINs).
• Aged inventory surcharge report: With this report, you can view itemized charges for your inventory.
• Inventory storage overage fees report: This report lists your estimated fees according to storage type.

Wrapping up — Stay on top of Amazon seller fees

Amazon’s myriad of fees can be overwhelming, but the company provides free tools to navigate them. If you’re worried about how expensive it is to sell on Amazon, there are many ways to minimize your costs, as we’ve shown.

By learning about Amazon’s fees and how you can reduce them, then utilizing the platform’s tools as you grow your business, your seller experience will be much smoother.

Published: May 19, 2022
Updated: May 23, 2023

Shipping costs play a significant role in attracting and retaining eCommerce customers. By cutting your logistical expenses, you can increase your profits and differentiate your products from your competitors, which helps you stand out in a crowded market.

Read on to learn some top tips to reduce your Amazon shipping costs, from leveraging Amazon’s programs and services to negotiating with carriers and passing on costs to customers.

Mitigating Amazon FBA fee increases

Amazon recently introduced fee increases for FBA storage utilization ratios and inventory aging. These aim to address the inefficient use of Amazon’s warehousing for unsellable goods, which monopolize space and eat into working capital via holding costs. The most notable changes are summarized as follows:

• Sellers with a high inventory cube (which is the total available space they use expressed as a percent) relative to their recent weekly sales face a new storage utilization surcharge.
• Amazon has increased the surcharges applied to inventory stored for 271 to 365 days.
• Amazon introduced inventory surcharges for goods stored for 180 to 270 days, except for products in the apparel, shoes, bags, jewelry, and watches categories.

To minimize the impact of these fee increases, it’s essential to reduce your shipping costs. Review and incorporate the following strategies to lower your logistical expenses and stay ahead of Amazon’s wide-reaching changes.

To learn more about Amazon seller fees, check out MyFBAPrep’s Guide to Amazon Seller Fees.

1. Sign up for Amazon’s Seller Fulfilled Prime program

Amazon’s Seller Fulfilled Prime program enables you to fulfill orders and deliver them directly to domestic Prime customers from your own warehouse. Showcasing the Prime badge on your Amazon listings guarantees two-day delivery at no extra cost for Prime customers. This saves money on shipping costs and increases your sales by offering fast and free shipping. Additionally, Amazon provides the necessary transportation solutions to meet the high standards of Prime members.

This perk is exclusive to the Prime program though, so, if you aren’t already, consider signing up. To enroll, you must meet specific requirements, such as providing accurate tracking information and storing your products in a secure facility.

2. Enroll in Subscribe & Save

Amazon offers a shipping subscription program designed for eCommerce retailers who ship a high volume of packages. Sellers can enjoy several benefits through the program, including:

• Consistent sales: Regular purchases and 20% of annual revenue
• Customer loyalty: Repeat customers and increased consumer loyalty with minimal investment
• Engaged customers: Subscribers are more likely to purchase additional items
• Increased visibility and reach: Priority placement and enhanced custom search filters in a dedicated storefront

To participate in the Subscribe & Save program, sellers must meet the following eligibility requirements:

• Seller feedback rating of 4.7 or higher
• Well-performing FBA account with strong sales
• Active FBA account for at least three months

The discount you receive from participating in Subscribe & Sale will depend on the number of packages you ship, so be sure to research the program and compare its rates to those of other carriers.

3. Leverage Amazon’s Multi-Channel Fulfillment program

If you sell your products on multiple sales channels like Amazon, eBay, and your own website, Amazon’s Multi-Channel Fulfillment (MCF) program can help you save on shipping expenses and increase efficiency. It allows you to fulfill orders from various platforms through Amazon’s fulfillment centers.

Obviously, you’ll need a seller account on Amazon to participate in the program. However, you also have to meet certain criteria similar to those of Seller Fulfilled Prime, including providing accurate tracking information and ensuring your products are stored in a secure facility.

4. Ship your products in bulk

Shipping products in bulk enables you to take advantage of carrier volume discounts when you ship a large volume of products simultaneously. So, consider sending your products in large batches rather than individual ones.

When shipping in bulk, use sturdy packaging materials to ensure your products arrive at their destination in good condition.

5. Send larger packages

Larger packages let you leverage dimensional weight pricing, which slashes your fulfillment expenses because you pay based on the package size, not only its weight.

You should use larger boxes or pack your products to maximize the package’s size. Like with bulk shipments, use sturdy packaging materials to ensure your products arrive at their destination in optimal condition.

6. Capitalize on Amazon’s Buy Shipping discounts

Amazon introduced a Sponsored Discount option that allows you to purchase shipping labels through Buy Shipping at a discounted rate. You can access these cost savings by logging into your Seller Central account and navigating to the Buy Shipping page.

Look for the blue “Amazon Sponsored Discount” badge to find the shipping methods with discounted prices (they’re listed next to the badge).

The number of labels you purchase determines how large a discount you receive, so research the program as well as the rates of other carriers.

7. Take advantage of Amazon’s free shipping options

Research has shown time and time again that shipping costs are one of the biggest barriers to completing a purchase online. Approximately 28% of online shoppers will abandon their purchase if they encounter unexpected shipping costs during checkout.

Offering fast and free shipping can have a significant impact on your business:

• Increase conversions and reduce cart abandonment
• Boost customer satisfaction and loyalty
• Raise the average order value

If you don’t offer free shipping, there’s a good chance that customers will go to a competitor who does.

One of the easiest ways to offer free shipping to your customers is through Amazon FBA. With Amazon’s fulfillment program, you can offer fast and free shipping without having to worry about the logistics of shipping yourself.

8. Partner with regional carriers

Opting for regional carriers like FedEx and UPS is a cost-effective solution for your shipping needs, as they often provide lower rates than their competitors.

Be sure to compare the rates of regional carriers with those of larger ones to find the best deals. Further, regional carriers may have varying delivery times and coverage areas, so it’s crucial to evaluate your options carefully and select the one that meets your requirements.

9. Negotiate with carriers for better rates

Related to the previous strategy, you can often secure lower shipping rates by negotiating with carriers based on the volume of packages you ship, the size of your packages, and other factors.

For the most fruitful negotiations, contact carriers directly and discuss your shipping needs and goals. Or, you may consider using a third-party service to negotiate rates on your behalf.

10. Adopt flat-rate shipping

Flat rate shipping allows you to charge a fixed shipping fee, regardless of the weight or size of the package. Flat-rate boxes and envelopes take advantage of dimensional weight pricing to reduce your shipping costs.

This can be an effective measure to attract customers and increase sales, as many buyers are willing to pay a flat rate for shipping in exchange for the convenience and reliability it provides.

11. Utilize USPS Priority Mail

USPS Priority Mail is a cost-efficient solution for shipping packages with fast delivery times and competitive pricing.

Before embracing this service, however, be sure to research the delivery times, shipping restrictions, and other key factors to ensure it’ll accommodate your needs.

12. Assemble packages with Amazon’s supplied shipping materials

Amazon offers a variety of shipping supplies at a discounted rate, including boxes, envelopes, and packing materials. This can save on dunnage expenses, but be sure to look into the restrictions and guidelines for each carrier to ensure your packages are eligible for the discounted rate.

13. Pass on some of your shipping costs to customers

Having customers shoulder some of your shipping costs will reduce your logistical expenses and increase profitability.

You could consider charging a small shipping fee either as a flat rate or based on the weight of the package. When shipping costs are passed to customers, clearly communicate the prices and allow buyers to choose their shipping method.

Alternatively, you can offer free shipping for orders over a certain amount, which encourages customers to spend more.

14. Contract third-party fulfillment services

Third-party fulfillment services like Fulfillment by Amazon (FBA) can slash your shipping costs and boost efficiency. These providers handle the storage and shipping of your products, freeing up time and resources for your business.

When considering a third-party fulfillment service, research their fees, restrictions, and delivery times to locate the best one for your business.

Looking for ways to cut your FBA fees? Learn more in MyFBAPrep’s guide to understanding and reducing your Amazon FBA fees.

15. Choose the most economical shipping service

To find a cost-effective shipping service for your business, look into different shipping methods and compare their rates and benefits. Consider the delivery times, shipping restrictions, and other factors that affect your operations.

16. Analyze Amazon’s Seller Central shipping reports

Amazon’s Seller Central reports provide detailed information on your shipping expenses and help you identify opportunities to lower costs.

To use this tool, log in to your Seller Central account and access Shipping Reports. There, you’ll find valuable information such as the cost per shipment, the cost per unit, and your total shipping costs.

17. Make use of Amazon’s shipping credits

Amazon offers shipping credits to eligible sellers who meet specific criteria, such as providing accurate tracking information. Applying these credits can lower your shipping expenses and boost your profitability.

It’s essential to monitor the requirements for these shipping credits regularly to ensure you remain eligible and can take advantage of the cost savings.

How MyFBAPrep lowers Amazon shipping rates for sellers

MyFBAPrep can help sellers reduce Amazon shipping fees in several ways, such as:

• Optimizing shipping methods: MyFBAPrep finds the most cost-effective shipping methods for products by comparing rates among different carriers and advising on the best options.
• Managing inventory: MyFBAPrep tracks and organizes items in Amazon warehouses, reducing the need for additional storage space — and the associated fees.
• Reducing returns: By providing professional and efficient preparation services, MyFBAPrep can cut the number of returns, in turn significantly lowering shipping expenses.
• Bundling products: MyFBAPrep can bundle multiple products into one shipment, which lessens the number of packages that sellers have to ship.
• Offering competitive rates: MyFBAPrep enjoys access to bulk shipping rates and can pass on these savings to customers, helping sellers diminish their logistical costs.

Incorporating MyFBAPrep’s services can streamline your shipping processes, save on fees, and increase your profits in the long run.

Wrapping up — Take steps to slash your Amazon shipping costs

By taking advantage of Amazon’s programs and services along with the expertise of a third-party fulfillment service, you can improve your logistics and increase customer satisfaction to drive your business forward.

Reducing your Amazon shipping rates is essential to boost efficiency and grow your brand. So, take the time to research your options, find the best solutions for your business, and start paying less for your Amazon shipments.

Amazon is a major player in the eCommerce industry, providing online sellers with a massive platform to reach millions of customers across the globe. One of its most popular services is Amazon Multi-Channel Fulfillment (MCF), which allows sellers to take advantage of Amazon’s vast fulfillment network to complete orders from other sales channels.

Amazon MCF helps merchants streamline their fulfillment processes and improve customer satisfaction. However, like any eCommerce service, it also comes with a set of challenges that can impact a seller’s bottom line, reputation, and overall operations.

In this article, we’ll explore some of the most common obstacles sellers face with Amazon MCF and provide tips on how to navigate and overcome them. By understanding these challenges and implementing best practices, you can effectively leverage the power of Amazon MCF to improve your operations, boost customer satisfaction, and increase profitability.

Common MCF challenges

These are common issues merchants encounter when using Amazon MCF:

• High costs: One of the biggest challenges with Amazon MCF is its high service cost. Amazon charges fees for storage, handling, and shipping, and these expenses can add up quickly, particularly for sellers with large or heavy items. Additionally, the cost structure for MCF can be complex, making it challenging to calculate costs and profit margins accurately.
• Limited inventory visibility: Amazon MCF provides limited visibility into inventory levels and locations, making it difficult for sellers to manage their stock efficiently. This can lead to overstocking or understocking, which in turn can result in lost sales or wasted inventory.
• Shipping delays: Although Amazon has an extensive fulfillment network, shipping delays can occur due to a variety of factors, such as natural disasters, weather conditions, or other unforeseen events. Such delays can negatively impact a seller’s reputation and customer satisfaction, particularly if the merchant fails to provide accurate tracking information or timely updates.
• Limited customization options: Amazon MCF offers limited customization options for packaging and branding, which makes it challenging for sellers to differentiate their brand and create a unique customer experience. This is a major drawback in crowded markets or for merchants with highly personalized products.
• Poor customer service: Some sellers have reported issues with Amazon’s customer service, including slow response times and a lack of personalized support. This can be frustrating, especially if merchants encounter issues with their MCF orders or need assistance navigating the platform.

Overcoming these challenges

Despite these issues, there are several strategies sellers can use to overcome them:

• Negotiate rates with Amazon: To reduce MCF costs, you can negotiate rates. This involves working with Amazon’s customer support team or using an Amazon-approved third-party service to explore opportunities to reduce fees and optimize fulfillment costs. Additionally, Amazon provides a fee calculator to estimate your costs and identify areas to cut expenses.
• Adopt inventory management software: To manage inventory levels more effectively, look for inventory management software that integrates with MCF. These tools provide real-time visibility into your inventory levels and locations, which helps optimize your inventory levels and avoid stockouts. Some inventory management software can also automate inventory forecasting and replenishment so you can stay on top of your inventory needs more easily.
• Work with third-party logistics providers: To improve shipping times and lower fulfillment costs, consider working with a third-party logistics provider (3PL). 3PLs can provide additional warehousing and fulfillment support to expand your reach and reduce shipping costs. By leveraging a 3PL’s expertise and infrastructure, you’ll enjoy the benefit of their fulfillment speed and accuracy while freeing up resources to focus on other aspects of your business.
• Maintain open communication: When shipping delays and other issues inevitably occur, communicate the situation to your customers. This includes providing accurate tracking information, sending automated updates, and offering clear and timely responses to their inquiries. You can also leverage Amazon’s built-in communication tools, such as messaging and feedback, to stay in touch and address any issues or concerns.
• Provide excellent customer service: To maintain customer satisfaction and avoid the headache of Amazon’s customer service, provide your own exceptional customer support. Similar to the previous point, clear and timely communication, accurate product information, and addressing customer concerns promptly are important components here as well. By catering to consumer needs, you’ll improve your reputation and drive repeat business.

Implement these strategies and stay proactive in managing your MCF operations to maximize its benefits for your business and achieve long-term success.

Best practices for Amazon MCF

To optimize your use of Amazon MCF, here are some of the most effective best practices to follow:

• Streamline your fulfillment process: This can involve refining your packaging, labeling, and shipping procedures, as well as using automated tools and software to manage orders and inventory. By streamlining your fulfillment process, you reduce errors and speed up shipping times.
• Implement quality control measures: Quality control measures ensure your products are delivered to customers in good condition. You can employ secure and reliable packaging materials, perform quality checks on products before they ship, and track products throughout the fulfillment process to identify potential issues. These actions lower the risk of returns, improve customer satisfaction, and protect your reputation.
• Stay on top of Amazon’s rules and policies: Amazon has strict rules and policies for sellers who use their fulfillment services. They cover everything from product packaging and labeling to shipping methods and handling procedures. To avoid penalties and maintain smooth operations, make sure you learn and follow these regulations.
• Take advantage of Amazon’s technology: Amazon MCF offers numerous tools and resources designed to help sellers optimize their fulfillment. These include automated order processing and inventory tracking, advanced analytics, reporting tools, and more. Take advantage of these resources to gain valuable insights into your business and make informed decisions to strengthen its functionality.
• Partner with third-party experts: Realize the full potential of Amazon MCF by partnering with third-party vendors who can streamline your business. Vendors like MyFBAPrep can provide additional warehousing and fulfillment support, helping you expand your reach and cut shipping costs. Additionally, many offer specialized services like kitting and bundling so you can create unique product offerings and stand out in a crowded market.
• Monitor and optimize your performance: Regularly measure your Amazon MCF performance and make adjustments where needed. This entails analyzing your shipping and fulfillment metrics and tracking your inventory levels. Stay on top of your performance metrics to identify issues and opportunities to improve your fulfillment.

Following these best practices and proactively managing your Amazon MCF operations will help you optimize your business operations, reduce costs, and improve customer satisfaction.

Wrapping up — Work smart, not hard with Amazon MCF

Amazon Multi-Channel Fulfillment offers numerous benefits to eCommerce sellers, allowing them to expand their reach, improve their customer satisfaction, and streamline their fulfillment operations. However, the service has its drawbacks, like high costs, restricted inventory visibility, shipping delays, limited customization options, and poor customer service. However, you can overcome these challenges by implementing strategies like negotiating rates with Amazon, utilizing inventory management software, working with 3PLs, communicating with buyers, and providing excellent customer service.

Follow these best practices, and you’ll make the most of Amazon MCF while reducing costs, improving operations, and driving long-term success for your eCommerce business. You’ll also stay informed on changes to the platform and identify opportunities to optimize your fulfillment operations.

With nearly two million active sellers on Amazon, it’s no surprise counterfeit products are a persistent problem for brands.

However, Amazon’s efforts to combat counterfeiters have significantly improved over the years, utilizing advanced technologies such as machine learning and automated systems to prevent fraudulent activities proactively.

Whether you’re a small business or a large corporation, it’s crucial to understand the various threats your brand may face on Amazon and learn how to mitigate them.

Keep reading as we explore the different strategies and tools available to help you protect your products on Amazon and safeguard your reputation.

Why Amazon brand protection is vital

Various strategies and tools can protect your intellectual property rights on Amazon. Employing these defenses safeguards not only your brand name but also your product designs, images, logos, and other unique features that make your products stand out.

As one of the largest eCommerce platforms in the world, Amazon attracts millions of shoppers every day. While this presents an excellent opportunity for you to reach a massive audience, it also makes you vulnerable to counterfeiters and unauthorized sellers.

Recognizing the severity of this threat, Amazon invested over $700 million in brand protection measures in 2020. As a result, the company blocked over six billion suspected bad listings that year alone.

You must take tactical measures to defend your brand on the marketplace and avoid losing sales, damaging your reputation, and even facing legal consequences. Below, we’ve broken down the best proactive and reactive steps to combat online attacks.

Interested in more stats that prove the importance of Amazon brand protection? Check out the results of MyFBAPrep’s 2022 Amazon Brand Protection Report.

Amazon Brand Registry

Amazon created a program to protect and build your brand called the Amazon Brand Registry.

By enrolling, you gain access to several tools designed to protect your brand and prevent counterfeiters from selling your products. You can search for and report listings that violate your intellectual property rights, as well as implement various features that make it easier to manage your brand and ensure your listings are accurate and up to date.

Eligibility and enrollment

To be eligible for Amazon Brand Registry, you must meet certain requirements:

• You need to have an active registered trademark for your brand.
• You need to be able to verify your identity and provide evidence of your intellectual property rights.

Then, to enroll in Amazon Brand Registry:

• Create an account on Amazon (if you don’t already have one).
• Provide information about your brand, including your registered trademark, and submit documentation that proves your ownership of said trademark.

Once Amazon verifies your information, you’ll be enrolled in the program and can take advantage of all the benefits outlined above and more.

Monitor your brand

One of the most effective ways to prevent attacks on your brands is to monitor it proactively. Regular check-ins allow you to identify counterfeiters and unauthorized sellers quickly and take action to remove them from the marketplace before they cause harm.

Amazon’s Brand Dashboard is a robust business monitoring tool. It provides real-time data on your product listings, including information on customer reviews, sales, and traffic. Look for irregularities or suspicious behaviors among them to spot potential scammers.

Additionally, many third-party monitoring software options can track your listings across multiple marketplaces, including Amazon, and provide alerts when unauthorized sellers or counterfeit products are detected. Some popular options in this category are Brandlox, BrandShield, and Red Points.

Monitoring strategy

A strategy for identifying counterfeiters and unauthorized sellers is also essential to your business. Incorporate tactics such as:

• Regularly search for your brand name on Amazon and other marketplaces.
• Check customer reviews.
• Monitor mentions of your brand on social media and other online platforms.

Take action against scammers

If you identify counterfeit items or unauthorized sellers on Amazon, act immediately to minimize the damage to your business. Your options here include using Amazon’s infringement reporting system, issuing cease and desist letters, and exploring other legal actions and options.

Amazon’s infringement reporting system

Amazon’s Brand Registry program enables store owners to take action against potential intellectual property (IP) violations. Access the program portal to report suspected IP violations, submit takedown requests, and monitor your brand on Amazon. The system allows you to remove counterfeit listings quickly and efficiently, as well as provides tools to track and manage potential infringements.

You can also work with Amazon’s Brand Protection teams, who specialize in uncovering and removing counterfeit listings. By collaborating directly with Amazon, you’ll ensure a faster resolution and maintain the integrity of your products on the platform.

Cease and desist letters

Cease and desist letters are formal, legally binding correspondence that demand the party in violation to stop using your brand’s intellectual property and remove any counterfeit or infringing products from their listings immediately.

The letter should include specific instances of infringement, your legal rights as the brand owner, and the consequences of non-compliance.

If the guilty party fails to comply with the cease and desist letter, you may choose to bring the matter to Amazon or pursue further legal action.

Further legal action

If both cease and desist letters and cooperation with Amazon fail to resolve the issue, you may need to consider legal pursuits. Infringement of intellectual property rights, such as trademark and copyright violations, can lead to civil litigation, monetary damages, and, in some cases, criminal penalties for counterfeiters.

Legal action tends to be time-consuming and costly, but it may be necessary to protect your brand’s reputation and value. Consult with legal counsel to determine the most appropriate course of action based on the specific circumstances and the severity of the infringement.

Amazon’s (other) brand protection programs

In addition to Amazon’s Brand Registry, the company has launched other initiatives to help brands protect their intellectual property and name credibility. Two notable additions are Amazon’s Project Zero and the Transparency program:

• Amazon’s Project Zero is an innovative program designed to empower brand owners to drive counterfeit products to zero on the platform. It combines the platform’s advanced technology, machine learning, and your knowledge of your brand to identify and remove counterfeit listings. Project Zero also features a self-service tool that lets you take down fake listings directly, without the need for Amazon’s intervention.
• The Transparency program, meanwhile, is a product serialization service that allows customers to verify the authenticity of an item before purchasing. Brands enrolled in the program must apply unique Transparency codes (barcodes) to their products, which customers can then scan using the Amazon Shopping app or a Transparency-specific app to ensure they’re purchasing a genuine product.

Transparency barcodes are 2D QR codes designed to help authenticate a product before shipping to customers. Learn more about Transparency barcodes in MYFBAPrep’s guide.

Build and strengthen your brand

Along with increased sales and consumer loyalty, a strong brand presence on Amazon creates a positive, memorable image in customers’ minds, making them more likely to choose your products over others and become repeat buyers.

To cultivate an authoritative presence on Amazon, focus on several key elements that contribute to an appealing and trustworthy image, including:

• High-quality product images
• Compelling product descriptions
• Managing customer reviews
• Utilizing Amazon’s A+ Content

High-quality product images

Images are vital to attract customers and showcase your products’ features and benefits.

Ensure your photos have high resolution and are well lit and professionally shot. Include multiple angles and close-ups to highlight key product features. Lifestyle images and infographics also help customers visualize how your product fits into their daily lives.

Compelling product descriptions

Your product descriptions should be engaging, informative, and tailored to your target audience.

Focus on communicating your products’ unique selling points and preemptively addressing common concerns or questions. Use clear, concise language and avoid jargon or overly technical terms.

Also, format the text properly using bullet points and short paragraphs to make your listings easy to read and understand.

Encourage and manage customer reviews

Customer reviews wield great influence over shoppers’ purchasing decisions. Encourage buyers to leave reviews by providing excellent customer service, following up to gauge their satisfaction with your product, and running automated email campaigns.

Regularly monitor and respond to customer reviews to address concerns, show appreciation for positive feedback, and demonstrate your commitment to consumer satisfaction.

Utilize Amazon’s A+ Content

Amazon’s A+ Content (previously Enhanced Brand Content) allows brand owners to craft visually rich and informative product listings. These features enable you to showcase your brand story, highlight product features, and display additional images or videos.

By incorporating A+ Content into your product listings, you can create a more engaging shopping experience for customers, which encourages higher conversion rates and increased sales.

Wrapping up — Use Amazon brand protection proactively to guard your business

It’s imperative to safeguard your brand when selling on a platform as massive as Amazon.

Taking effective measures like enrolling in an Amazon brand program and strengthening your brand with engaging product listings will shore up your defenses and can significantly contribute to your brand’s success and reputation.

Stay alert by keeping an eye on your brand’s presence and acting quickly against counterfeiters and unauthorized sellers. Adopt these strategies to secure your brand’s future, improve trust with customers, and set yourself up for success on Amazon.

Growth is crucial for your eCommerce business to thrive, especially on a competitive marketplace like Amazon. Whether you’re a new seller looking to establish your brand or an experienced merchant seeking to expand your product offerings, you can achieve your goals by adopting a combination of powerful tactics.

This article will explore some of the top strategies for growing your Amazon business. From improving your product listings to taking advantage of the platform’s advertising and fulfillment programs, we’ll show you how to strengthen your business’s presence on Amazon.

Improve your product listings

One of the most important steps in expanding your Amazon business is ensuring your product listings are clear, informative, and optimized for search. Here are some strategies you can use to refine and hone your product listings:

• Clear product titles and descriptions: Your titles and descriptions should accurately reflect your products and their features. Be sure to include all relevant information, such as size, color, and material.
• Optimized keywords: Insert relevant keywords throughout your product listings to improve your search rankings. Use tools such as Amazon’s Keyword Tool to research popular keywords.
• Include high-quality images and videos: High-quality images and videos can significantly help attract customers to your products. Feature clear, well-lit images and videos that showcase your items from different angles.

By improving your product listings, you’ll make your products more appealing to customers and increase your search rankings, which leads to greater sales and business growth.

Expand your product line

Add more choices to your offering to hit more of your consumers’ pain points and appeal to a wider audience. To maximize your product line’s potential, you can:

• Identify product opportunities: Research popular products and pinpoint gaps in the market to uncover new opportunities. You can combine Amazon’s Best Sellers Rank with your sales data to determine which products are in high demand.
• Evaluate profitability and demand: Once you’ve identified potential products to add, estimate their profitability and demand. Look at factors such as production costs, shipping fees, and forecasted profit margins to determine if a product is worth pursuing.
• Research the competition: Before launching a new product, study your competition to see how they position their products and what pricing strategies they use. This will show you how best to differentiate your offering and stand out in the market.

Expanding your product line can help you reach new customers and increase your sales. Just be sure to do your research and evaluate potential products carefully before launching them on Amazon.

Capitalize on Amazon Ads

Amazon offers their own sponsored advertising options to help sellers make their products more easy to find. Here’s how to take advantage of Amazon Ads:

• Choose the right option: Amazon offers a range of advertising options, including sponsored products, brands, and display ads. Each one has different benefits and costs, so it’s important to understand which type of ad will work best for your business.
• Set an ad budget: Determine how much you’re willing to spend on advertising and set daily or weekly budgets accordingly. Monitor your advertising spend and adjust your budget as needed to maximize your return on investment.
• Analyze your ad performance: Amazon provides advertising analytics tools to track the performance of your ads so you can adjust your strategies as needed. Look at metrics such as click-through rates, conversion rates, and cost per click to determine which ads are most effective.

By effectively employing Amazon Ads, you can strengthen your visibility on the marketplace and attract more customers to your products, ultimately leading to business growth.

Join Amazon’s FBA program

Amazon FBA (Fulfillment by Amazon) can be a game changer for your business. Amazon stores and ships your products directly to customers, as well as takes care of customer service and returns. This saves you time and allows you to focus on other business aspects. Other ways FBA can benefit you include:

• Prime shipping and Buy Box wins: FBA gives you access to Amazon’s Prime shipping program, which increases your visibility and attracts more customers with guaranteed fast, free fulfillment. Additionally, FBA can help you win the Amazon Buy Box, the coveted top position on product pages.
• Efficient inventory management: With FBA, it’s easy to monitor your inventory levels so you know when to reorder, which avoids stockouts. Additionally, Amazon offers inventory management tools to optimize your inventory and reduce storage fees.

Need help navigating FBA? We can help!

FBA can streamline your fulfillment process by letting you take advantage of Amazon’s powerful fulfillment and shipping infrastructure. As a result, shoppers are more likely to buy from you, leading to more sales and business growth.

Build your brand

Building a strong brand presence on Amazon helps differentiate you from the competition and attracts loyal customers. Here are some strategies for nurturing your brand presence:

• Use consistent branding: Feature your brand name and logo on all of your product listings and marketing materials to make your business instantly recognizable to consumers.
• Get in front of your audience: Consider creating a dedicated storefront on Amazon where customers can browse your product catalog and learn more about your brand. Additionally, use social media and email marketing to connect with your customers and build brand loyalty.
• Incentivize buyers: Offer loyalty programs or incentives for repeat customers to encourage them to keep coming back. Tangentially, respond to customer inquiries and address any issues to improve their satisfaction; knowing they can expect a great customer experience with you can persuade them to return for future purchases.

Collect customer feedback

Customer feedback is a valuable source of information to help you improve your product offerings and increase customer loyalty. You can effectively gather and implement customer feedback by:

• Leveraging the “Request a Review” button: When someone makes a purchase on your Amazon store, you can manually request a review by clicking “Request a Review” in Amazon Seller Central. This sends a templated email to the buyer asking for them to submit their feedback. Although you can’t edit the request, Amazon does translate the text into the buyer’s chosen language automatically.
• Providing social proof: Positive customer feedback can help you attract more potential buyers and build trust with them. These types of reviews highlight your product’s strengths, showcase them being applied in the real world, and help remove doubts that may be preventing someone from purchasing.
• Incorporating negative feedback: Although unpleasant to read, negative reviews are an opportunity to transform a detriment into an advantage. Hone in on customer complaints to identify areas for improvement, such as with your products or customer service.

No matter the type of feedback you receive, be sure to respond to all reviews promptly and courteously. Thank your consumers for taking the time to rate your product or service. This brings dual benefits by making your existing customers feel heard and showing potential buyers you’re committed to caring for your audience and remedying any issues.

Embrace Amazon’s tools and analytics

Amazon provides a range of powerful analytics tools to help sellers grow their businesses. Some of the marketplace’s most helpful features are:

• Seller Central: Seller Central is Amazon’s hub for sellers. It provides tools for managing inventory, analyzing sales data, and communicating with customers.
• Amazon’s suite of analytics tools: Tools like the Sales Dashboard and the Business Reports tool help you track your sales and identify trends. Use these tools to make data-driven decisions about your business.

Analyze the sales data from these tools to identify opportunities for growth, such as expanding your product line or targeting new customer segments. That information can also help you optimize your pricing and advertising strategies.

Wrapping up — Many roads lead to business growth (and success) on Amazon

Expanding your Amazon business requires a combination of effective strategies and hard work. By following the tactics covered in this article, like improving your product listings, leveraging Amazon’s advertising and fulfillment programs, and using the platform’s tools and analytics, you can take your business to the next level.

As you take action, monitor your progress consistently, analyze your data, and adjust your strategies based on that information to maximize your results. With dedication and effort, you can achieve your business goals and experience significant growth on Amazon.

This is a guest post from Jordi Ordoñez. Jordi is an Amazon seller consultant who has written and participated in La Vanguardia, Shopify, Prestashop, Radio Nacional de España, Capital Radio, El Español, Revista Emprendedores, Brainsins, Marketing4ecommerce, eCommerce-news.es, SEMRush and other media. He provides Amazon training at The Valley, Foxize, EOI, Esic and other business schools.

For Amazon sellers, it’s essential to conduct thorough product research before releasing a new item or even launching variations of your existing lines. The marketplace competition is fierce: Merchants face white hat and black hat sellers, plus Amazon Retail and Amazon white brands — sometimes all four in the same niche!

Without proper research, it’s challenging to find a lucrative product and matching supplier. To add to the complexity, you need to analyze your niche as a whole for useful industry insights. Thankfully, powerful tools like Helium 10 and Jungle Scout are available to simplify this undertaking. They’re designed to identify what works and what doesn’t, streamlining the product research process for you.

Along with explaining the value for your store, I’ll walk you through how to conduct Amazon product research and show how each tool works.

The importance of product research

To avoid running a generic Amazon seller profile, you need to conduct exhaustive product research. Anyone can find an item using Jungle Scout, source it on Alibaba, and start selling it on Amazon. That includes your competitors and even the item manufacturer, who almost always offers a better product and pricing by cutting out the middle man.

So, you need to uncover a more competitive option, and the only way is to dig deep into product research (hence the need for robust tools). This extends to your suppliers as well; a typical manufacturer that appeals to the masses might not be your best bet. You should also consider less mainstream options like Tmall, 1688, Spocket, HyperSKU, DH Gate, Made-in-china, and trades and fairs.

Based on my experience, I’ve pinpointed the characteristics of a great product, which I’ve broken down below.

Quickly sourceable

You can find great manufacturers in many countries like Turkey, Poland, Mexico, Hungary, India, or Pakistan, to name a few. I personally love sourcing from countries that are connected to my own by road and train so I have at least two alternatives to freight shipping to ensure prompt delivery. After all, if the product performs great on Amazon, you don’t want to wait three or four weeks to refill it.

Patentable

Let’s say you analyze the market, settle on a great idea and manufacturer, and build your product. You’ll want to protect your idea so the same manufacturer or other clients don’t steal or copy it, so go for patentable ideas.

Pricing

The right product for Amazon FBA is a $25–$30 tier product that’s small and shippable in two days. However, if you opt for high-ticket products, that means fewer competitors and bigger profits. Think outside of the box when it comes to product research.

Variations

A product should be able to grow and diversify. After all, it’s easier to launch a new variation than an entire product.

Expandable categories

Finally, try to find products that can expand to other categories or subcategories, or even beyond Amazon. If you sell a sports item, for example, look to sell it on Walmart, Decathlon, Sprinter, Tradeinn, and other online marketplaces.

What is Helium 10?

Helium 10 is a powerful suite of tools designed for Amazon sellers. It provides a range of features to help you optimize your eCommerce business, including product and keyword research, listing optimization, and much more. Helium 10’s product research tool is particularly useful for finding profitable items to sell on Amazon. As an Amazon seller myself, I use both Helium 10 Black Box and Xray, which is a Helium 10 Chrome Extension.

What is Jungle Scout?

Jungle Scout is another popular tool designed for Amazon sellers, with a focus on product and keyword research. Their tool provides detailed information about items like sales data, pricing, and reviews to help you find profitable products that meet your criteria.

Both Helium 10 and Jungle Scout’s tools contain millions of products on their databases, but the key to finding great ones is how you analyze the data.

A step-by-step guide to Amazon product research

Step 1: Define your product criteria

Before you start your product research, you must define your product criteria, including product category, price range, sales volume, competition level, and the like. These help you narrow your search to find products that meet your requirements. I myself prefer to stick to categories I already know or products I have experience with. Avoid categories like:

• Promotional categories: The ones that have 50% or more of their products discounted
• Amazon Retail populated categories: Unless you have a strong brand or a different USP, selling something like coffee, which has lots of established brands under Amazon Retail plus Happy Belly and Solimo (Amazon’s own brands), is a bad idea
• Chinese sellers populated categories: Low pricing and margins, listing hijacking risks

Step 2: Use Helium 10’s Black Box tool

Once you’ve defined your product criteria, you can use Helium 10’s Black Box tool to search for products that meet your requirements. (I prefer to start my journey using Black Box and Xray, then move to Jungle Scout.)

Black Box is a powerful tool that allows you to filter products based on a range of criteria, including product category, sales volume, and price range. It also provides data on factors like estimated monthly revenue, review count, and ratings.

The filters I like to apply are:

• High growth products
• Low rating products
• New products skyrocketing sales
• Large/Oversized products with no SFP

You can learn more about using Helium 10’s filters strategically in this article I wrote.

Consider other markets as well. According to Jungle Scout’s “State of the Amazon Seller 2022” report, Turkey, Saudi Arabia, Brazil, Australia, and Japan are Amazon’s fastest-growing marketplaces.

Of course, always look for new ideas and angles in product research. Helium 10 has some great posts on how to find keywords with a high search volume and a low number of indexed competitors quickly, or how to use their tools for competitor analysis.

Step 3: Analyze product data using Jungle Scout

After you’ve listed potential products with Helium 10’s Black Box tool, you can turn to Jungle Scout to analyze the data further. Jungle Scout provides sales data, pricing, reviews, and other critical product information. That can help you identify items with high demand and low competition. Jungle Scout’s database is 475 million products long and growing, so you’re all but guaranteed to find a lucrative investment.

The keyword research tool is also great to help you calculate margins based on the products’ related keywords cost per click (e.g., broad match, exact match keywords) so you gain a more detailed look at your potential profit and loss.

Step 4: Validate your product ideas using Helium 10’s Xray tool

Now that you’ve identified potential products using Jungle Scout, you can embrace Helium 10’s Xray tool to validate your ideas’ profitability. Xray uncovers data on factors like sales volume, revenue, and competition level and allows you to analyze the keywords being used for top-ranking products in your category.

I like to look for:

• % of Amazon Retail listings in the niche
• % of Amazon Brands in the niche
• % of popular/known brands in the niche
• % of Chinese sellers in the niche (nearly half of the top third-party sellers on Amazon are based in China)
• If my competitors use lots of variations
• Daily Sales Velocity to rank on page 1
• If there are any products with only a few reviews on page 1 (this implies I can generate sales without having lots of reviews and rank on page 1)

Other elements you need to check manually include:

• The number of sponsored products on pages 1 and 2
• The presence of any sponsored brand videos
• If your competitors use A+ pages
• If your competitors use discounts

Helium 10’s Chrome Extension is also useful to download, as it reveals ASIN per ASIN and the 5,000 main reviews on your competitors so you can explore bad reviews to pinpoint product weaknesses.

Step 5: Finalize your product selection

After analyzing your data using Helium 10 and Jungle Scout, you should have a strong list of potential products that meet your criteria. It’s essential to evaluate each of them carefully and choose the one that fulfills your requirements. Consider factors like profit margins, competition level, and demand when making your final selection.

To search existing products and their popularity, Helium 10’s Xray has an “Alibaba Suppliers” feature that checks for items on Alibaba, while Jungle Scout boasts its own supplier database. You can also use the free Aliprice Chrome Extension to reverse look up product images on Alibaba, Tmall, Aliexpress, JD, 1688, and other Asian Marketplaces.

Conclusion

You need to introduce new products regularly to keep your store’s catalog fresh and your profit margins healthy. Performing Amazon product research with Helium 10 and Jungle Scout is an efficient way to find lucrative items to sell on Amazon.

Define your product criteria and learn your niche to build a list of options. Then, narrow it down through manual research using Helium 10’s Black Box tool or Xray extension, as well as Jungle Scout’s product database.

Remember to evaluate each candidate carefully and select the product that offers the best profitability and has both low competition and high demand. By relying on these tools, you’re sure to find your next Amazon bestseller.

Competition is fierce in eCommerce, and understanding your competitors is essential to your business’s survival.

Amazon is the largest online marketplace, with over 300 million active customers worldwide. However, it’s also the major platform for a massive number of sellers — and you have to contend with this large pool to attract shoppers’ attention. By learning the ins and outs of your competitors, you can identify gaps in the market and stay ahead of changing trends.

A highly effective way to inform your pricing strategy, product offerings, marketing efforts, and customer service approach is to conduct an Amazon competitor analysis. Keep reading as we help you identify top competitors, assess their customer service and fulfillment processes, and learn from their strengths and weaknesses.

Identifying your top competitors

The purpose of running a competitive analysis is to examine your competition and collect essential data, such as:

• What successful strategies are your competitors employing?
• How can you enhance your own business tactics?
• What methods can you use to stand out against your competition?

The first step in the process is to identify your top competitors. To do this, analyze product listings and categories similar to yours. Look for retailers selling products that are the same as or similar to yours, then check their sales history, product features, and customer reviews.

Evaluate sales rank and customer reviews

Amazon’s sales rank is a powerful indicator of a product’s popularity. By evaluating the sales rank and customer reviews of your competitors’ products, you can gauge their market share and reputation.

Online reviews are especially critical, as 93% of consumers say they influence their purchasing decisions. Look for trends in customer feedback to understand what buyers value and hone in on any common complaints.

Look at price, product features, and brand reputation

Price, product features, and brand reputation are other factors to consider when identifying your top competitors. Look for retailers offering products at lower prices or with more advanced features than yours. These businesses may be capturing a significant portion of your target market.

Narrow your list

After following the above steps, you’ll have an extensive list of competitors. To shrink that number and gain the most valuable results from your analysis, prioritize sellers with strong results and conduct in-depth research on them.

For example, include sellers with Amazon’s Choice and Amazon Best Sellers products, representing top listings in each niche. Also, focus on sellers with multiple listings on the first page of search results.

Next, refine your list and categorize all sellers into three groups:

1. Your primary competitors (i.e., companies selling products highly similar to yours or targeting the same audience)
2. Businesses selling similar products to a different audience or offering slightly higher- or lower-end products than yours
3. Companies selling products related to your offerings (for example, if you sell candles, this category may include companies selling incense burners)

Ideally, you should create a spreadsheet containing all your competitors, their category assignments, product lists, and essential details about them, including strengths and weaknesses. This organized approach will help you focus on the most relevant competitors and inform your strategic decisions.

Conducting an in-depth Amazon competitor analysis

Once you’ve determined your top competitors, you can conduct an in-depth analysis of their product listings.

Titles, descriptions, images, and keywords

Study your competitors’ product listings, focusing on aspects like titles, descriptions, images, and keywords. Assess how well they present their products and determine if they use Amazon SEO best practices.

• Titles: Compare the titles across various products, noting potential additions or omissions that could enhance their effectiveness. Consider the keywords competitors incorporate in their product titles to describe their offerings.

• Product descriptions: Reviewing product descriptions reveals insights into the essential information to include or omit.
• Images: Images are foundational to any Amazon listing, as people can’t see or touch your product in person. Strive to obtain the highest-quality images, taken at the best angles that show the product in the greatest detail. Examine the photos of your competitors’ products and note things that do and don’t work.
• Bullet points: These typically feature a product’s key selling points, making them worthy of close examination as well. Check out which benefits your competitors emphasize in their products and devise strategies to address those advantages within your own product bullet points.
• Keywords: Just like you, your competitors work hard to optimize their listings for target keywords. So, take a close look at their listings and see if they’re doing something you’ve missed. You can do this manually, but using a keyword research tool makes the whole process faster and easier.

Take note of any standout features or tactics your competitors employ and think about how you can implement them in your own listings.

Looking for more ways to improve your product listings? Check out MyFBAPrep’s 3 Simple Strategies for Show-Stopping eCommerce Product Listings.

Pricing strategies

When making a purchase decision, an overwhelming 80% of online shoppers consider price to be the most critical factor. Understanding your competitors’ pricing strategies is thus essential to stay competitive on Amazon.

Examine their pricing history and any patterns in price changes. This will help you identify opportunities to undercut your competition or position your products as premium alternatives.

Matching your competitor’s pricing is a straightforward and low-risk approach, but it may diminish the perceived value of your products in your customers’ eyes. You could leave money on the table by engaging in a “race to the bottom.”

A more effective avenue is leveraging apps that track competitor pricing and implement dynamic pricing for your products. These tools automatically adjust prices to optimize profit margins in response to changes in your competitors’ average prices. This way, you can align your pricing strategy with your customers’ perceived value while remaining competitive in the market.

Advertising strategies

Before initiating Amazon ad campaigns, examine your competitors’ advertising strategies on the platform. To stay competitive, your ads must have a similar or slightly higher cost-per-click than other sellers in your niche.

Employ appropriate tools to assess other sellers’ Amazon ad campaigns and discover which keywords they’re targeting and their corresponding search volumes.

Additionally, investigate whether your competitors use Google Shopping ads. You can do this easily by inputting one of your primary keywords into Google and checking for Amazon product ads within the Google Shopping ads section.

If you find no such ads, you can capitalize on that opportunity by running ads for your products. However, be aware this approach carries some risk, as competitors might avoid Google Shopping ads for certain reasons.

Assessing competitor customer service and fulfillment

Customer service and fulfillment are critical factors in eCommerce, and assessing your competitors’ performance in these areas can help you solidify your own.

Customer support

Satisfactory customer support is critical to maintain a positive reputation on Amazon. Determine your competitors’ response times to customer inquiries and the quality of their support. Look for consumer reviews that talk about their performance as well for an honest overview.

If your competitors consistently receive praise for their customer service, consider whether you can improve your support to match or exceed their standards.

Fulfillment methods and shipping policies

Analyze your competitors’ fulfillment methods to understand their efficiency, cost-effectiveness, and overall impact on customer satisfaction.

First, determine which fulfillment methods your competitors use, such as Fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP), or Fulfillment by Merchant (FBM). Then, examine their shipping policies, including fulfillment costs, delivery times, and free shipping offers. This reveals how their fulfillment methods affect customers’ purchase decisions.

Look for signs of effective inventory management like consistent stock levels and minimal out-of-stock incidents as well.

If possible, purchase a product from your competitor to evaluate their packaging and unboxing experience firsthand. Pay close attention to the packaging quality, branding, and overall presentation, as these factors can impact buyer perception and satisfaction.

Determine whether their approaches are more efficient or cost-effective and consider adjusting your fulfillment strategy.

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Learning from competitor strengths and weaknesses

Conducting a thorough competitor analysis will uncover areas where your business can improve. Use this information to develop a plan for addressing these weaknesses and enhancing your overall performance on Amazon.

Leverage competitor strengths

Take note of your competitors’ strengths and consider how you can integrate them into your own business strategy.

This may involve updating your marketing tactics, refining your product offerings, or improving customer service. Be prepared to innovate and find ways to gain an edge in the market.

Adapt and innovate based on competitor weaknesses

Don’t focus solely on your competitors’ strengths; their weaknesses can also provide valuable insights.

Identify areas where your competitors are underperforming and take advantage of those gaps to differentiate your business. Innovate and adapt your strategy to capitalize on these opportunities and set your brand apart.

Tools for Amazon seller competitor analysis

Several tools are available to help you conduct an Amazon competitor analysis effectively.

While each one offers unique features and benefits, the best selection for you will depend on your specific needs and budget. Here are some popular tools to consider for your research:

• Jungle Scout: Jungle Scout is an all-in-one platform for Amazon sellers, providing extensive market and competitor data. With features like product tracking, keyword research, and sales estimates, Jungle Scout can help you keep a close eye on your competition.
• Helium 10: Helium 10 is another comprehensive tool offering a suite of features for product research, keyword analysis, and competitor tracking.
• AMZScout: AMZScout’s range of Amazon seller tools includes a Chrome extension that allows you to analyze competitor data directly on Amazon’s website. With features like product tracking, sales estimates, and keyword research, AMZScout can provide valuable insights into your competition.
• Keepa: Keepa is a powerful tool for tracking Amazon product prices, sales rank, and other data. With Keepa’s historical price data and sales rank tracking, you can monitor your competitors’ pricing strategies and make informed decisions about your own pricing.
• Viral Launch: Viral Launch is a comprehensive Amazon seller platform with tools for product research, keyword analysis, and competitor tracking.
• SellerApp: SellerApp is another all-in-one platform for Amazon sellers that provides extensive market and competitor data. It has several impressive elements like product tracking, keyword research, and sales estimates.
• FeedbackWhiz: FeedbackWhiz is designed to help Amazon sellers manage their customer feedback and reviews. By tracking your competitors’ reviews and ratings, you gain insight into their customer service performance and identify areas where you can improve your own customer support.

Before making your choice, consider your specific needs, budget, and the tool’s features. Some platforms offer free trials or limited access to their features to help you determine the best fit.

Wrapping up — Gain an edge with Amazon competitor research

Conducting a thorough Amazon competitor analysis is essential for eCommerce retailers to stay ahead of other sellers.

You can make better informed decisions about your business by identifying your top competitors, analyzing their strategies, and learning from their strengths and weaknesses. The eCommerce landscape is constantly evolving, so it’s crucial to watch these fluctuations and adapt your plans.

Learn continuously from your competition and adopt the right tools to maintain a competitive edge on Amazon and position your business for success.