Several effective ways to reduce Amazon FBA fees

Several effective ways to reduce Amazon FBA fees

Amazon FBA is the seller selling on Amazon platform and then providing goods to the warehouse of Amazon's local market. The advantage is high timeliness, but on the one hand, the disadvantages of FBA are also obvious. The high storage costs and poor flexibility make sellers headaches. Here are five ways to reduce Amazon FBA fees:

Amazon FBA

1 Optimize products that are in the boundary of size and weight

Charge by size and weight segment means that if the product is slightly larger or heavier than a certain segment value, it will be charged higher. Therefore, the first step to reduce the cost is to check which size and weight segment the product belongs to. . Find products that are at the lower end of the size or weight segment. It is best to choose simple packaging and try to be as light and small as possible.

2. Prepare the necessary preparations in advance

Amazon FBA has many requirements for delivery services, including inbound transportation, product packaging, barcode labels, etc. Amazon will charge a fee for each unit product. If the seller uses the manufacturer's barcode instead of the Amazon FNSKU barcode, it may cause the inventory to be "mixed" with the inventory of other sellers. These costs can be reduced or avoided.

3. Clear unfulfillable inventory

If a customer returns an item, Amazon will check the item to determine if it can be sold again. Products that cannot be sold again are called "unfulfillable". If they are not removed, they will remain in the logistics center and continue to incur storage costs.

4. Review FBA invoices

There may be differences in the fees charged by Amazon, and sellers can apply for compensation according to the FBA inventory compensation policy.
Amazon's FBA compensation pays for the retail value of the affected inventory, not just the cost of the inventory.
Although applying for a claim is a complicated and time-consuming process, it is worth the money. Sellers can also hire other companies to carry out the Amazon FBA fee claim process.

5. Manage inventory

Amazon sets storage fees, storage limits, and inventory performance index (IPI) to allow sellers to maintain low inventory levels to make full use of their warehouse capacity. The method of reducing FBA storage costs is not troublesome, but the cost of managing inventory can be reduced through this approach.