Amazon recently announced new Fulfilled by Amazon (FBA) inbound listing service fees.
In this article, we’ll introduce eight strategies you can use to manage this new inbound publication fee increase and avoid diminishing profits.
This pricing structure was created by Amazon to reflect the cost of shipping sellers’ inventory to fulfillment centers closer to buyers. Specifically, from March 1, 2024, Inbound introduction service fee Standard items and bulky large items are affected.
Like other Amazon fees, shipping and storage fees continue to eat into FBA sellers’ profits and, in some cases, force small sellers to close their doors.
So let’s take a look at 8 strategies to keep more profits in your pocket.
For the “Fulfilled by Amazon” setting, you must select your desired receiving settings.
1) There is a gear symbol in the upper right corner of the FBA Seller Central home page.
2) Hover over and select the Fulfillment by Amazon option.
3) Scroll to “Receive Settings”. There is an edit button on the right side.
4) Change settings
- Amazon-optimized shipping splits: This option allows FBA sellers to ship products to as many destinations as possible. 4 or more Amazon warehouses. You should expect minimal inbound placement fees, but if you’re lucky; No additional charges.
- Splitting a partial shipment. FBA sellers can ship inventory to fewer locations, but inbound placement fees are subject to additional charges per item.
- Minimal split shipping. If you choose this option, you will be responsible for the cost. Full amount of inbound introduction fee For each unit shipped.
To avoid these fees, choosing Amazon-optimized shipping splits is clearly your best option. However, you will incur the additional cost of inbound distribution to his four or more FBA warehouses.
You will need to do the math to determine if your company’s import shipping costs will “save” you enough money.
For some Amazon sellers, the new inbound listing fee means they have to increase product prices to absorb the fee.
After all, the reason Amazon wants to move products to other warehouses (fulfillment center transfers) is to place them closer to customers who expect faster delivery.
So, for the privilege of super-fast shipping, shouldn’t the end customer bear some of the cost?
We understand that building customer relationships with Amazon customers can be difficult.
But using non-Amazon techniques to stay in touch with your customers can help you build relationships and encourage repeat business. If you have a complementary product and don’t do this, you could be leaving money on the table.
If you haven’t tried it yet, helium 10 portal is a tool that helps you create off-Amazon landing pages to which you can direct your customers. The best way to do this is to add an insert (QR code) to your products so that your customers can access your landing page.
When a customer comes to you, Portal In this environment, you can launch email marketing and other campaigns to foster customer relationships and encourage repeat sales.
Profitability is key. Now more than ever, you need to pay close attention to all your costs and maintain your bottom line.
One option for reducing costs is Audit your PPC campaign.
Consider ditching your broad exploratory PPC campaigns and focus your campaigns on: Exact match PPC keywords Phrases that generate the best conversions.
If PPC isn’t your forte, contact a company like: e-commerce Companies that offer free PPC audits.Or run your own audit using Helium 10 Free PPC Audit Tool.
Your job as an Amazon seller is to stay ahead of the many ways your profits can be eroded. That means never being satisfied with the status quo and always being creative.
You’ve heard me say it before, and I’ll say it again. FBA sellers who are able to sustain price increases are those who sell at higher prices. There is no need to completely reinvent the product.But you can do it create extra value. think about:
It is important to build relationships with suppliers so that you can work to reduce upfront landed costs. For example, you can:
FBA has many benefits and some sellers believe in this distribution model. However, some Amazon sellers have proven that the FBM model works perfectly well for their companies.
If you choose FBM, you can take advantage of Amazon discounts offered to sellers who choose to purchase shipping through Amazon.
If your sales velocity and sales momentum plummet and you are no longer able to generate profits, you should consider cutting back on your products.
Only you can draw the line in the sand and decide if selling your product is still viable. However, profitability must be the most important factor in decision making.
In some cases, severing ties with a product can give you more bandwidth to find and launch a new, better product. My advice: don’t go down with the sinking ship. Some of the most successful sellers have had to cut their losses and go back to square one.
In this article, we have shared 8 legitimate strategies you can use to reduce costs and keep profits in your pocket.
If you’re an experienced Amazon seller, you probably already know that Amazon Marketplace is a cutthroat business and not an easy one to navigate.
To be successful, you must embrace challenges and repeat my mantra: “Adapt and Grow.”