Listen To Our Most Recent Podcast Episodes As Soon As They're Live: Here!

Ways to Save On the Fees for Amazon FBA Shipping

Posted by Digital Market Group Adams/Freedman in
Do you know about ways to minimize your expenses in your Amazon FBA business? The more power and control you have over improving your revenue while also decreasing your potential fees, can put you in a better position to sell your company when the time comes. At Website Closers we have extensive experience helping Amazon FBA business owners sell their companies for maximum value. One of the first things you can do to decrease your Amazon FBA fees is to create your shipping plan. This shipping plan is the formal documentation that tells Amazon how many units will be shipped to them and where they need to send those units. Most sellers choose to send their inventory to only one fulfillment center, but Amazon also has the power to decide which centers they will allocate these products to. The primary purpose for this, especially when you start working with them, is to find ideal markets where they can sell more of your goods. When Amazon chooses a fulfillment center for reasons related to sales or convenience, this means you could be charged additional fees if your inventory is stocked at a location that does not make sense for your customers. This means you need to carefully think about all of the data points you can use to put together a shipping plan with your target market in mind. Use this information to send it to Amazon as soon as possible to decrease the fees that would otherwise be associated with having to transfer your property between locations. When selling add-on products, this is a proposition that should be evaluated carefully. You do have the right to label certain products as add-ons, which enable you to attach them onto products that have lower prices. You can see higher sales and profits as a result of this. But remember that Amazon has final discretion in determining what products are add-ons. It can be difficult to identify the companies price thresholds on goods that make the most sense as add-ons. If an add-on is sold as main and separate merchandize, and a customer purchases this alongside another product, the fulfillment by Amazon fees for both of these items are added together. Meaning that as the Amazon FBA seller you have to pay higher charges. It is critical that you make sure that any add-ons you’re thinking about including into your business make sense and are indeed worth the extra fees to enhance your profit. The final thing you can do to monitor your Amazon FBA fees is to methodically review your inventory. Products that have been sitting or stored in a fulfillment center for any longer than 365 days are subject to additional charges known as long-term storage fees. These are a per unit long term storage fee for every month, and these fees can get very expensive, especially if you have a great deal of unused merchandize stored there. Paying for them can be lost potential revenue, and it can be a hassle to attempt to figure out what to do with them next. If you have a better idea of the numbers needed of your inventory, you can ship this in smaller batches and help avoid problems while you’re getting closer to the 365-day mark.