Amazon Small and Light Program is a popular program designed for sellers who want to save on shipping costs for their small and lightweight products.
It offers a range of benefits, including Prime eligibility, reduced shipping fees, and customer discounts. However, to take advantage of this program, sellers must meet certain eligibility criteria and adhere to specific shipping requirements.
This article provides a comprehensive guide to the Amazon Small and Light Program, with a focus on helping sellers navigate the ins and outs of the program and maximize their profits. We will discuss the benefits of the program, the eligibility criteria, and the enrollment process.
Additionally, we will explore the fulfillment options available to sellers and provide pricing and fee information. Finally, we will offer best practices for listing products, marketing strategies, and customer satisfaction and reviews.
We'll also keep you updated on the new 2024 changes to the Small and Light program.
Compared to standard FBA, the Small and Light program offers massive savings on fees and fulfillment costs for eligible items. Enrolling eligible items in small and light can dramatically increase profitability on these items.
For example, let's consider an example item that we could sell for around $12 with a buying cost of $5.28. Without Small and Light, the profit would be only $1.03, offering a 19% return on investment (ROI). But by opting for Small and Light, the profit doubles to $2.23, giving a 43% ROI. Keep reading to learn more about how to increase your margin by adding small and light program to your FBA strategy.
Have questions about eCommerce fulfillment pricing? Find answers here.
Understanding Amazon Small and Light Program
The Amazon FBA Small and Light Program is a cost-effective option for sellers of small and inexpensive products that meet the program's eligibility criteria. These requirements include specific weight, size, pricing, and condition requirements, as well as compliance with Amazon's policy on restricted items.
To enroll in the program, sellers must already be signed up for Amazon FBA and complete a two-step process of enrolling their items through Seller Central and sending their inventory to the fulfillment center.
Once enrolled, sellers must ensure that their products meet the program's unique prepping and shipping requirements. For example, products must be in clear plastic bags and each individual unit must have a barcode. Amazon ships FBA Small and Light products in poly bags or Jiffy bags, which can be problematic for fragile products. Proper packaging is necessary to avoid breakage during shipping.
Despite its specific requirements, Amazon FBA Small and Light offers various benefits to sellers. These benefits include lower shipping fees, Prime eligibility, multi-channel fulfillment, and discounts for customers. However, it also entails certain drawbacks, such as longer shipping times (3-5 days for Prime) and limited marketplace coverage (not offered in Amazon Canada, Mexico, or Australia). With these factors in mind, sellers can make informed decisions about whether or not to participate in the program.
Moving on to the subsequent section about the benefits of Amazon Small and Light for sellers, this program can help establish brand loyalty by passing savings onto customers, and products under the Small and Light Program are Prime-eligible. Amazon will also shoulder the costs of discounts for eligible products. These and other benefits can make Amazon FBA Small and Light an attractive option for sellers of small and cheap products.
Additionally, sellers must also be aware of Amazon Poly Bag Requirements for packaging. Lucky for you, we have a detailed guide for poly bag requirements right here.
Benefits of Amazon Small and Light for Sellers
Here are four key benefits that FBA Small and Light offers to FBA sellers:
1. Lower Shipping Fees: By shipping products in poly bags or Jiffy bags as opposed to cardboard boxes, FBA Small and Light reduces the cost of shipping. As a result, sellers can pass on these savings to their customers.
2. Prime Eligibility: Eligible products under the Small and Light program are Prime-eligible, allowing sellers to tap into a larger customer base and increase their sales.
3. No Minimum Purchase Requirement: Unlike traditional FBA which classifies inexpensive products as "Add-ons" and requires a minimum purchase requirement for free shipping for Prime customers and standard shipping for non-Prime customers, the FBA Small and Light program does not have a minimum purchase requirement, making it easier for sellers to sell products without worrying about meeting a certain price threshold.
4. Discounts for Customers: Certain products (Grocery and Beauty for example) priced under $5 are eligible for a 5% discount if a customer orders multiple units. Amazon will shoulder the costs of the discount for these products, providing sellers with an opportunity to establish brand loyalty by passing on savings to their customers.
Are you eligible? Qualifying Criteria for Enrolling in Amazon FBA Small and Light in 2024
To be eligible for the FBA Small and Light program, products must meet specific size, weight, and price requirements.
Eligible products must weigh 3 lbs or less, measure under 18 x 14 x 8 inches or less, and be priced at $12 or less.
In addition, products must not be classified as dangerous goods, hazardous goods, or adult products. Items that are temperature sensitive, such as chocolates, gummies, or candles, are ineligible as are used products.
Meeting the size and weight requirements is essential for participating in the program. Products that are too large or heavy will not qualify for the program. Amazon ensures that products that are part of the Small and Light program are easy to pick, pack, and ship.
Small and Light Prep and Packaging
Small and Light products must meet standard FBA packaging requirements. Each item must have a scannable barcode that uniquely identifies the product such as an EAN, UPC, ISBN, GCID or JAN. Commingling is not allowed. Glass and sharp objects need to be packaged to prevent breakage or injury. Crushable items such as potato chips must be packaged so that they will not crush during shipment.
How to Enroll in Amazon Small and Light Program
Once sellers have confirmed that their products meet the eligibility criteria, they can enroll in the program through Seller Central. Amazon offers two enrollment options: a quick enroll option or an Excel template download option.
Seller Central - Create the Product Listing
Log into your Seller Central account.
Click "Add a Product".
Enter the ASIN (Amazon Standard Identification Number) of the product.
Click 'sell'.
Add a memorable SKU (Stock Keeping Unit).
Set the price, ensuring it doesn't exceed $12 (maximum for Small and Light).
Select "new" for the condition.
Choose "Merchant fulfilled".
Set the quantity to zero.
Click 'Save and Finish'.
Wait a few minutes for the product to appear in your inventory.
Enrollment into Small and Light Program
Confirm the product is listed correctly in your inventory.
Copy the SKU of the product.
Go to the Amazon Small and Light enrollment page.
Click "Quick Enroll".
Paste the SKU into the designated field and check eligibility.
If the item is eligible, enroll it.
Looking for ways to streamline the logistics of your Amazon business? Mastering FNSKU labels is a great way to optimize your logistical process - read this article to learn why and how.
Fulfillment Options for Amazon Small and Light Sellers
Fulfillment options play a crucial role in the success of sellers. Under traditional FBA, sellers can fulfill orders from Amazon, as well other marketplaces, and their own e-commerce websites by using Amazon's multi-channel fulfillment service. In the past, the Small and Light program could only be used for fulfilling Amazon orders, but in 2023, Multi-channel fulfillment was added for Small and Light products.
The next section will discuss the pricing and fees associated with the FBA Small and Light program.
Or, perhaps you're on the lookout for the nearest Amazon FBA fulfillment center in your area? Click here for ways to find it.
Pricing and Fees for Amazon Small and Light
Understanding the pricing and fees associated with the FBA Small and Light program is essential for sellers looking to maximize profitability for their eligible products. Here are some important points to consider:
1. Fees for the program are based on weight and the fulfillment fees for each unit. The weight-based fee is $0.10 per unit, and the fulfillment fee is $1.00 per unit. However, Amazon offers reduced fulfillment fees for products priced at $5 or less.
2. The program also offers reduced referral fees for eligible products. Referral fees are the percentage of the sale price that Amazon charges as a commission. For products priced at $12 or less, the referral fee is 6%, compared to the standard 15% for most products.
3. Amazon also offers a Multi-Channel Fulfillment (MCF) fee for sellers who want to use FBA to fulfill orders from other sales channels. The MCF fee for Small and Light products is $1.08 per unit, plus weight-based fees.
By taking advantage of reduced fulfillment and referral fees, sellers can pass on savings to customers and increase their sales. In the next section, we will discuss some best practices for listing products on Amazon Small and Light.
Products Ineligible for Small and Light
Restricted Products, FBA Prohibited Products, Adult Products, Hazmat Products and Meltables are ineligible for Small and Light. Used products are ineligible; products must be new.
2024 Changes to Small and Light Fees and Eligibility.
Amazon announced that starting January 17th, 2023, the maximum price threshold for products eligible for the Small and Light program will increase from $10 to $12! This is a huge change and allows for more products to become eligible. Amazon also expanded the size tiers, and this might affect the profitability of some products depending on their weight. For example, a product weighing 5 oz had a fulfillment fee of $2.47, but after the change the fee will increase to $2.54. If you haven't checked your Small and Light numbers in awhile, it's worth checking so that you can make any needed adjustments. Furthermore, if a product you're currently selling is priced slightly above the new threshold, you may consider reducing its price to make it eligible for the Small and Light program. This strategy can potentially lead to more Buy Box wins and ultimately higher sales volume and profits.
Frequently Asked Questions
Are there any restrictions on the types of products that can be enrolled in the Small and Light program?
Products that are restricted by Amazon cannot be enrolled in the Small and Light Program. Eligible products must weigh 3 lbs or less, measure under 18 x 14 x 8 inches or less, be priced at $12 or less, and be in new condition.
How long does it typically take for Small and Light products to be shipped to customers?
Small and Light products typically have longer shipping times, 3 to 5 days instead of the usual Prime 2-day guarantee. However, the exact duration may vary depending on various factors like location, carrier, and shipping option chosen.
What is the maximum weight and size limit for products enrolled in the Small and Light program?
The maximum weight for products enrolled in the Amazon FBA Small and Light Program is 3 lbs or less, while the size limit is 18 x 14 x 8 inches or less. Products must also be priced at $12 or less and meet certain eligibility criteria.
Can sellers enroll in the Small and Light program if they are not already signed up for Amazon FBA?
No, sellers cannot enroll in the Small and Light Program if they are not already signed up for Amazon FBA. This is because the program is an extension of Amazon FBA and requires items to be fulfilled by Amazon.
What options are available for shipping Small and Light products, and how do they differ in terms of cost and delivery speed?
Shipping options for Amazon FBA Small and Light products include standard shipping and expedited shipping. The cost and delivery speed varies depending on the shipping option chosen, with expedited shipping being faster but more expensive than standard shipping.
Conclusion and Key Takeaways
Key Takeaways
- Amazon FBA Small and Light Program is a cost-cutting program for small and inexpensive products that meet specific eligibility criteria. - The program offers advantages such as lower shipping fees, Prime eligibility, no minimum order requirement, and discounts for customers, but also has disadvantages like longer shipping times and specific prepping and shipping requirements. - To enroll in the program, sellers must be signed up for Amazon FBA and complete a two-step process of enrolling their items through Seller Central and sending their inventory to the fulfillment center. - Proper packaging is crucial to avoid breakage during shipping, and delisting from the program is automatic if items are priced above the high limit ($12 as of 2023 Q1).
In conclusion, the Amazon Small and Light Program offers a range of benefits for sellers looking to cut costs on small and cheap products. By enrolling in the program, sellers can take advantage of lower shipping fees, Prime eligibility, and discounts for customers. However, it's important to be aware of the program's eligibility criteria and shipping requirements before enrolling.
One interesting statistic to note is that according to Amazon, sellers who participate in the Small and Light Program see an average increase of 10% in sales. This highlights the potential for increased profits and customer reach that the program can offer.
Overall, the Amazon Small and Light Program can be a valuable tool for sellers looking to optimize their sales strategy and maximize their profits on Amazon.
Let's discuss your eCommerce fulfillment strategy. Contact us today.
Comments