On Amazon, with every 10,000 sellers, 66% use Fulfillment by Amazon (FBA) or sometimes called Amazon FBA. More than half of all sellers trust the services Amazon FBA offers. You might probably be asking yourself if it is already time to use the fulfillment option too. Note that Amazon FBA brings both blessings and challenges to sellers. This fulfillment option can save you from a lot of work worth the cost you will pay. However, it may also be a curse when your Amazon FBA shipping fees are higher than your sales.
If you are done with the thinking stage and have finally decided on using Amazon FBA, check these top five mistakes. They cause the increase of your Amazon FBA shipping charges. Avoid them to start to decrease your costs and increase your earnings.
Not thinking ahead when planning.
Doing the right things begins in your business's planning stage and your products. Think ahead. Imagine your business at least five years from the moment of your planning. Foresee that you have already expanded your enterprise abroad and in the US. Hence, you will also plan for the Amazon seller FBA shipping charges. As a result, you will think about saving on Amazon FBA shipping fees.
Keeping package weight and dimensions to a minimum - Among the first proactive steps, you can maintain 2lbs or below product weight. With this weight, you will also make your product packaging as tightly packed as possible.
Not doing this early is a mistake, as your Amazon FBA shipping charges will undoubtedly be higher. The costs are higher because products exceeding 2lbs, your product will be classified under oversize. A charge of USD8.26-137.32 plus USD0.38/lb for items more than 2lbs instead of USD2.50-USD5.42 for standard size will be charged to you.
Investing in Sponsored Ads - Also, investing in sponsored ads will ensure that a well-executed campaign will minimize your Amazon FBA spending. It will also increase your sales. There would be no need for long-term storage fees or removal fees as your items are always off the shelves.
Inefficient packing increases Amazon FBA shipping charges.
Another mistake that adds to your Amazon FBA shipping fees is inefficient packing. How much does Amazon FBA charge for shipping? The answer depends on the weight and dimensions of your package. If you pack loosely, and chances are, you will not save any costs. On the other hand, if you pack tightly with no moving space for your product, you can cut off some space. With that, you can go to the lower tier measurements of Amazon with lower fees to pay.
Professional shipping companies shipping to Amazon warehouses can help you pack efficiently according to the Amazon guidelines. You can delegate systematic packing to your partner shipping company.
Thinking that Amazon FBA shipping fees are high-cost
At first glance of an Amazon seller, FBA shipping charges can be daunting with all the tables and corresponding fees for every shipment and category type. It’s like seeing a giant brown bear. You immediately run.
However, you need to pay only four necessary fees in truth.
If the type of Amazon FBA you chose is an individual seller, you do not need to worry about it as your account comes at no monthly cost. If you have a professional account, you have a monthly fee of USD39.99.
- Fees per unit sold - If you have an individual seller plan, you need to pay USD0.99 for every unit sold. You do not have to pay this if you have a professional account.
- Fulfillment Fees: This fee depends on your package's weight, dimensions, and category.
- Storage Fees: Amazon FBA shipping charges storage fees too. When you think there wouldn’t be enough space for the millions of sellers, Amazon also offers Multi-channel fulfillment that offers non-Amazon sellers storage.
For an Amazon seller, FBA shipping charges for standard-size package stored in Amazon warehouses from January to September, be prepared to pay USD0.75/cubic foot. If you are storing oversize items in the same period, a USD0.48/cubic foot fee applies.
If you will store during the holiday season from October-December, a USD2.40/cubic foot storage fee for standard-size and USD1.20 fee applies for oversize goods.
Other fees apply for long-term storage.
When you see the tables showing all the costs you need to pay, fear not and remember that you do not need to be charged with everything. Take control over your Amazon FBA shipping fees by knowing the details you need and do not need to pay.
Downplaying the advantages of Amazon FBA Services
Aside from the fulfillment services offered by Amazon FBA, there is also another assistance you can get. Thinking that you can do all these services on your own is true, but getting help from experts is even better.
24/7 Customer Service - Amazon gives buyers importance as much as you do. In this area, you and Amazon are on the same side. Hence, all mechanisms on Amazon are directed to excellent customer satisfaction. Buyers are also happier when you use Amazon FBA, as included in the Amazon FBA shipping charges is customer service.
Seller Central Statistics - Seller Central statistics are gold. You can get a lot of insights just by looking at the numbers. Even more, if you partner with agencies to look into these numbers and use their tool to give you a detailed report. Through these numbers, you will understand if Amazon FBA works for you. You can also create game plans on what other steps you need to take to scale your business.
Amazon PRIME offers - Shipping yourself can be a mistake when you do not ship on time as your reputation suffers. More than this, you are at an increased risk of getting lower ratings and negative reviews that will pull your listing down the ranking. Hence, Amazon PRIME is a better option. Through this, you can offer free shipping and two-day shipping, which are highly attractive to buyers.
If you are going to use Amazon FBA, the goal is to keep your spendings minimum. Debunk the idea that Amazon FBA is not worth the cost by keeping in mind these mistakes that will increase your spending. You can minimize Amazon FBA shipping charges if you take the right steps. More than half of all sellers on Amazon use this fulfillment method, which is acceptable proof that it works.
If you need assistance in shipping your packages to Amazon warehouses in the US, Stallion Express can be your partner. We have a team of professional shippers who are well-versed in Amazon shipping guidelines and US Customs and Borders Protection regulations.
Contact us at 877-863-7477 for inquiries. You may also visit our website to know us more.