Amazon FBA – Zonbase Blog – Guides for Amazon Sellers https://www.zonbase.com/blog Get the latest Amazon tips and tricks for newbies or experts. Know what\\\'s happening and the get latest on Amazon here. Mon, 24 Jun 2024 12:23:23 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 https://www.zonbase.com/blog/wp-content/uploads/2021/09/Lozo-ZB-5-96x96.png Amazon FBA – Zonbase Blog – Guides for Amazon Sellers https://www.zonbase.com/blog 32 32 Amazon Selling Data, Metrics, and How to Leverage Them for Sales https://www.zonbase.com/blog/how-to-view-amazon-selling-data/ https://www.zonbase.com/blog/how-to-view-amazon-selling-data/#respond Sun, 03 Sep 2023 11:14:38 +0000 https://www.zonbase.com/blog/?p=24862 Amazon offers massive opportunities for new and existing entrepreneurs to make sales; they even go as far as making crucial product and sales data easily accessible. However, sellers who want to get the most out of the platform must know how to leverage this Amazon selling data to tweak their listing strategies, review sales performance, and generate profit.

To maximize your Amazon sales data, you have to know which metrics to focus on and how to use them to grow your business and boost sales.

In this post, we’ll tell you the Amazon selling data you should keep your eyes on and how you can leverage this data to take your business to the next level.

Related: Amazon statistics you should know

What Does Amazon Selling Data Mean?

Amazon selling data usually consists of sales figures, click-through rates, conversion rates, customer reviews, and inventory management data that can serve as a pointer to sellers’ sales performance. Sometimes, this data also focuses on individual product performance.

Using this data, you can optimize your product listings, modify your customer experience, polish your marketing strategies, and, of course, boost sales.

Amazon Selling Data You Should Be Monitoring

Amazon selling data cuts across different areas of your business: customer service, inventory management, PPC performance, conversion, and sales tracking. And as expected, this data is in the form of several metrics, some of which end up being unnecessary. So, instead of going through a long list of metrics and reports, here’s a concise list of the most important metrics or data you should keep an eye on.

We’ll start with the data that you can obtain from Seller Central and then move on to the ones you can get from third-party software.

Amazon Selling Data from Seller Central

  • Conversion rate

This metric tells you two very important things: how your product listing visits and views convert to sales, and secondly, the traffic sources your conversions or listing views are coming from.

This data not only helps you assess the effectiveness of your product listings but also guides improvements to enhance your conversion rates.

  • Advertising Cost of Sales (ACoS)

ACoS, in simple terms, gauges ad spend versus revenue (ACoS = ad spend/sales). This will come in handy when you want to see how your marketing budget is converting into sales.

  • Average Order Value (AOV)

Your average order value reflects the average value of all your orders within a specified timeframe.

  • Break-even ACoS

The break-even ACoS isn’t a measurement but a target. It’s the ad spend threshold within your product’s margin; or better put, it’s the ad budget your product’s profit margin can accommodate.

  • Click-through rate (CTR)

Your CTR helps you track the quality of your ad performance by comparing clicks to impressions. It’s the number of clicks your ads get divided by the number of impressions.

  • Cost of Goods Sold (CoGS)

The Cost of Goods Sold covers all direct costs of selling, including materials, shipping, and labor.

  • Customer Acquisition Cost (CAC)

Your customer acquisition cost, as the name implies, covers all expenses you incur to gain customers; this includes ad spend, social media ad budget, and other related costs.

  • Customer Retention Rate

Your retention rate shows you the percentage of existing customers who come back to purchase from you after a given period. Return customers come at a lower acquisition cost compared to new ones, so this metric offers profound insights into the factors fostering customer loyalty. Your retention rate can help you decide where to channel more effort when trying to build or grow your customer base.

  • Revenue

This metric shows the total earnings within a period from product sales.

  • Total Advertising Cost of Sale (TACoS)

TACoS connects ad costs to overall sales (TACoS = total ad spend/total revenue). This isn’t Amazon-calculated, but a straightforward formula.

Other Selling Data or Metrics You Can Get From Amazon Software

Amazon does not provide all the data you need. So you may have to invest in Amazon software to access some other crucial data.

  • Sales performance

Sales performance data gives you insight into products, and product categories that attract massive sales. 

This information will come in handy for choosing the right products or identifying the ones you should restock. You can obtain sales performance data from product research tools and sales estimator tools.

ZonBase’s ZonResearch and Sales Estimator tools do a great job of providing detailed and accurate Amazon sales data. Using these tools, you can see important metrics like monthly revenue, number of reviews, monthly sales, and even price. The data from ZonResearch can help you choose the bestselling products—products that have a proven track record of demand and sales.

The Sales estimator, on the other hand, offers similar Amazon product sales data, but in this case, to help you gain an idea of the sales potential for any product.

You can try out both tools for free when you sign up for a free trial of ZonBase.

  • Customer reviews

Customer reviews cannot be overlooked if you want to boost sales or the customer shopping experience. Customers share their pain points and experiences while shopping for your products through reviews, feedback, and ratings.

By analyzing these reviews, you can attend to customers’ concerns, improve the customer experience, increase customer loyalty, and identify product weaknesses and strengths. An added advantage is that boosting the customer experience gives you leverage when applying for the Buy Box.

You can access customer review data from review software tools. 

  • Marketing metrics 

Amazon allows you to access data from your marketing and advertising efforts, so you can analyze them and review your marketing strategies accordingly.

Some of these data include click-through rate, which tracks clicks and conversions, as well as return on ad spend.

The ZonBase ZonPPC tool allows you to access important PPC campaign data. Using this tool, you can view your ad spend, ACOS, ROAS, Impressions, CPC, Clicks, and CTR.

zonbase PPC dashboard
Zonbase PPC Dashboard

Apart from showing you important Amazon sales data, the tool allows you to launch and manage new campaigns.

Want to try out the tool? Sign up for a free trial of ZonBase.

  • Pricing data

Effective product pricing is key if you want to attract new customers and retain existing ones. You should be able to offer competitive prices while also ensuring that all your prices are always updated. This is where pricing data comes in. By tracking product pricing data, you can optimize and update product prices as needed.

With price analytics tools, you can obtain real-time pricing data and see how your product prices are impacting your sales.

  • Inventory management data

Running out of stock constantly can have you walking on thin ice, and that’s not a good place for any seller to be. You want to be sure that whenever customers come to shop for a particular product, you have it available for sale.

The best way to avoid stockouts is to use inventory management software. Using inventory management software, you can track your stock level, inventory turnover rate, replenishment rate, and lead times. You can also calculate how quickly your stock is selling out to prevent stockouts and determine your restock rate.

The ZonBase profits tool gives you access to crucial inventory data like expenses, sales, revenue, and profits. It has a performance matrix feature that shows your gross revenue, estimated profit, number of orders, number of units sold, ROI, profit margin, promotional spend, and refunds.

The tool also sends you notification alerts when your stock is running low and allows you to get an estimated restock date so you can avoid stockouts.

You can explore the tool for free when you sign up for a free trial of ZonBase.

  • Keyword data
zonbase keyword tool

Your keyword data makes it easy for you to monitor your keyword performance. Amazon does not provide keyword data, but with keyword research tools, you can see the kinds of keywords or search terms that your customers are using in their searches. 

You are also able to track your product’s performance and ranking for relevant keywords and the frequency with which your products show up in search results for certain search terms.

This way, you can target and focus on the keywords that have higher search results, thus boosting your product’s ranking.

With the ZonBase keyword tool, you can find the top-performing keywords in your niche and track the performance of your keyword picks. You can see the monthly search volume for any keyword. 

The tool displays a seasonality indicator, smart score, and relevancy score for each keyword option. 

Want to try out the ZonBase keyword tool? Sign up for a free trial.

  • Listing performance data

Your listing data will come in handy for tracking listing performance and ranking. This data can also help you optimize your listings better to increase your chances of conversions and sales.

One way to obtain listing data is to use split testing tools. Split testing or A/B testing tools allow you to test different listing elements and see which ones yield better conversions. Using these tools, you can test two listing variations with different titles, descriptions, images, and even keywords.

By doing this, you can see identify and stick to the listing elements that yield the best conversions for you.

Strategies For Maximizing Amazon Selling Data

What should you do with all this seller data at your fingertips? Here’s how you can leverage Amazon sales data to put your business at the forefront of the global marketplace.

Carry out competitor analysis

Competitor analysis

The marketplace is ultra-competitive, and to stay ahead of your competitors, you must keep an eye on their sales strategies. Amazon sales data makes it easy for you to compare your product reviews, prices, and campaign strategies with those of your competitors. By doing this, you can identify areas where modifications need to be made.

Optimize your product prices

Amazon product sales data—price, to be precise—will come in handy for identifying periods when demand fluctuates so you can adjust prices accordingly. Using your pricing data, you can come up with an effective pricing strategy so you can stay competitive and still make a profit. 

Optimize product listings

Amazon selling data like keyword performance helps you spot areas where your listing is lacking. This way, you can optimize your listings to boost ranking and visibility.

By analyzing customer behavior data, you can also determine what type of listing elements are attracting the most engagement. Using this insight, you can optimize your visual content to boost conversion and click-through rates. 

Optimize advertising campaigns

Amazon selling data offers great insight to help you optimize your ads. You gain access to ad placement data that shows where your ads perform best and bidding strategies that you can apply to get the most return on your ad investment. By analyzing your campaign data, you can identify keywords that perform best and improve audience targeting strategies to get the best results.

Improve customer experience

By reading customer reviews and monitoring their shopping behavior, you can identify customers’ pain points and provide prompt responses to negative feedback while also using positive reviews to display product features and enhance customer trust.

Manage your inventory better

Constantly analyze your inventory management data like average restock time and demand trends so you can adjust inventory levels accordingly. 

This will not only help in preventing inventory shortages but will also prevent overstock. This way, you have the right amount of inventory at all times, and customers are satisfied.

How To Access Amazon Selling Data

Accessing your Amazon sales data is one of the easiest things to do. You can use the Amazon seller central dashboard or integrate third-party analytical tools. Let’s take a look at how you can access Amazon seller data.

Your Seller Central Dashboard

Amazon Seller Central is the primary platform that sellers use to manage their account activities. You can also access valuable Amazon product sales data, conversion reports, business reports, customer feedback, and inventory management data for free from your seller central dashboard. 

All you have to do to access this data is log into your Amazon seller central account. Once logged in, you can access performance reports that enable you to gain insight into sales, customer behavior, and purchase orders.

Third-party Analytics Tools

zonbase profits tool
Zonbase Profits Tool Dashboard

While the Amazon seller central account is a great tool for accessing Amazon selling data at no cost, if you are looking for more advanced data and extensive insight, then you should use third-party analytical tools.

There are numerous third-party analytical tools available to Amazon sellers to monitor their competitors, market trends, customer behavior, and sales performance.

ZonBase is one we recommend. The software offers a long list of seller tools that provide valuable and accurate seller data and product sales data. Using the data that ZonBase provides, you can choose profitable products, pick relevant keywords, track keyword and ad performance, and manage inventory better.

You can sign up for a free trial to try out all ZonBase tools for free for 7 days.

FAQs

What should I include in my Amazon seller data checklist?

Some important things to look out for when working with data are completeness, accuracy, and consistency. Also, keep these in mind when choosing software for generating your Amazon selling data. Be sure that the data you’re working with is not outdated and is reliable. You should also ensure that you do not breach any privacy regulations when sourcing this data.

How much does it cost to obtain Amazon selling data?

While some data can be accessed for free, usually through the Amazon seller central dashboard, if you’re looking to obtain more comprehensive and precise Amazon sales data, it’s advisable to go for third-party data analysis tools. You may, however, be required to pay a certain fee.

Do I need Amazon sales data?

Yes, if you want to boost sales and then analyzing Amazon seller data is a good place to start. This is because you get access to information like inventory management level, Amazon sales data, and conversion rate which you can use in modifying various sales and marketing strategies to obtain optimum results. 

Conclusion

Amazon seller data is a great tool that can help revolutionize your business on a highly competitive platform.

Thankfully, there are lots of tools available to help you harness this data; however, before settling for a specific tool, ensure that it aligns with your budget, business goals, and sales strategies. By analyzing this data, you can refine various business strategies, make informed decisions, ensure customer satisfaction, and stand out.

]]>
https://www.zonbase.com/blog/how-to-view-amazon-selling-data/feed/ 0
Detailed Guide For Starting a Successful Amazon Mexico Business in 2024 https://www.zonbase.com/blog/starting-an-amazon-mexico-business/ https://www.zonbase.com/blog/starting-an-amazon-mexico-business/#respond Fri, 25 Aug 2023 09:08:46 +0000 https://www.zonbase.com/blog/?p=24833 If you already sell on Amazon and are looking to expand into new territories, here’s what you should do: join the Amazon Mexico marketplace.

Global selling is one of Amazon’s core visions, and so far, the retail giant has established over 20 online marketplaces across the world. The Amazon Mexico marketplace (Amazon mx.com), launched in 2015, is one of the newest and fastest-growing marketplaces.

Amazon mx.com has shown tremendous growth potential and witnessed a massive influx of new sellers in recent times. Why? It is relatively new, and competition isn’t so stiff yet.

If you read to the end, we’ll tell you everything you need to know to start an “Amazon Mexico Business”. We’ll show you how to create an Amazon Mexico business or seller account and provide some tips to help you scale your business in no time.

Related: Everything You Should Know About Amazon Global Selling.

Brief Overview of Amazon Mx 

Whether you are an existing seller who is looking to expand your business or you’re a newbie just about to begin your Amazon journey, setting up an Amazon Mexico business is a smart move. The marketplace is expanding rapidly, and statistics show that:

  • Most teenagers and adults have a smartphone.
  • Of the over 130 million Mexicans, about 50 million shop on Amazon.mx.com.
  • All the best-selling categories have seen a significant increase in revenue.
  • Mexicans are increasingly using PayPal and credit cards to pay for their online purchases. This is due to the convenience and security of these payment methods.

An outstanding benefit of starting an Amazon Mexico Business is that you get to sell on the U.S. and Canadian marketplaces too.

Starting an Amazon Mexico Business is not so difficult. You’ll have to follow the same processes for selling on other marketplaces, and we’ll outline the steps shortly. But first, let’s take a look at a few things you should consider before deciding to sell on Amazon.com.mx.

Things to Consider Before Starting an Amazon Mexico Business

As with other Amazon marketplaces, if you decide to sell on Amazon mx.com, you’ll have to ship orders promptly. So before you launch your Amazon Mexico business, be sure you have the infrastructure to store your products and ship them promptly. You also have to be able to provide 24/7 customer service and handle refunds and returns.

If you don’t have the capacity to store and ship your products or provide customer service, sign up for Amazon FBA. 

Contrary to what many sellers think, Amazon Mexico sellers can also use the Fulfillment by Amazon service. In this case, it is called Remote Fulfillment with Amazon. With this service, you can sell to shoppers in Canada and Mexico without having to ship inventory to those countries.

Here are a few other things to keep in mind when you decide to launch an Amazon Mexico business. 

Language

Spanish is the official language in Mexico, so if you want to sell on the Amazon Mexico marketplace, your listings have to be easy to understand for Spanish-speaking people.

Remember, trust is the first exchange currency, and people are more likely to trust you when you speak their language or create your listings in their language. So you have to put structures in place for easy translation.

Shipping Costs

truck delivery

Shipping costs are bound to skyrocket if you’re shipping orders into Mexico from the U.S. or other countries. Fast shipping is a major reason why people shop on Amazon, and Mexicans are not excluded.

Can you put structures in place to facilitate swift shipping within Mexico? Do you mind signing up for the remote fulfillment option to allow Amazon to handle this on your behalf? Or would you rather use independent shipping couriers like FedEx, UPS, and DHL?

Also factor in taxes, customs duties, and other shipping expenses and weigh your options. If your profit margin cannot accommodate these costs, you’ll have to look for a more affordable and reliable shipping option.

Returns

Returns and refunds are an ugly yet unavoidable part of running an online business. Handling returns as an Amazon Mexico seller is even more complex. Why? You’ll need a Mexican address. How do you get one if you’re not based in Mexico?

If you don’t have a Mexican address, you’ll have to pay all the return or refund expenses out of pocket, and this may eat into your profit margin in the long run. You’ll also have to go through the rigors of international shipping twice and that’s not enjoyable.

The most viable solution to this is to leverage Amazon’s fulfillment network even if it means paying Amazon fees.

If you’ve considered these and are still ready to start your Amazon Mexico business, follow the tips below to launch your business. 

How to Start an Amazon Mexico Business

Starting an Amazon business Mexico is quite straightforward. You’ll have your business set up in a few days if you follow the tips outlined below:

Create an Amazon Seller Account

Amazon offers two types of seller accounts — individual and professional seller accounts. You can set up an individual selling account for free but you’ll be charged a per-item fee of about $0.99 after every sale. If you opt for the professional plan, you’ll have to pay a monthly selling fee of about $39.99. 

Find a Profitable Product to Sell

A profitable product is a must-have if you want to succeed on Amazon regardless of the marketplace you sell on. Finding a profitable product is not the easiest thing in the world, but it can be way easier if you use Amazon software. 

With ZonBase product research tools like ZonResearch you can find products with high demand, low competition, and a track record of sales. You can also access important product and sales data in minutes and make an informed decision based on this data.

Try out the ZonResearch tool for FREE.

Generate Relevant Keywords

Keywords play a crucial role in helping you gain visibility and conversions. However, you have to find top-performing keywords that shoppers are likely to use when searching for products like yours. 

With the ZonBase keyword tool, you can uncover the best keywords in your niche or for your product. And if you want to go the extra mile to analyze your competitors’ listings and see what keywords they are ranking for, you can use the ZonBase Reverse ASIN tool. These tools make it easy for you to view keyword data and track their performance then choose the best ones for your listings. 

Try out the Keywords tool for FREE.

Create Your Listings

The next thing to do after finding a product and generating keywords is to set up your listings and start making sales. You can list your products on the Amazon Mexico marketplace manually, or you can use Amazon’s bulk upload tool to upload multiple products at once. You’ll also have to optimize your listings with product images, clear descriptions, catchy titles, and bullet points.

Creating and optimizing listings can be a herculean task but if you don’t know how to go about it, you can use Amazon software.

The ZonBase AI Listify tool allows you to create optimized listings from scratch in minutes without having to create content yourself. All you have to do is provide a seed keyword and the tool will go through your competitors’ listings and find their top 10 keywords, then create a unique listing for you using these keywords. 

Try out the AI Listify tool for FREE.

Fulfill Your Orders

Once the orders begin to roll in, the next step is to ship them out promptly. You can do this yourself or use Amazon FBA if you’d rather outsource the fulfillment process. 

Requirements for Starting an Amazon Mexico Business

Selling on Amazon mx.com is not a complicated affair, but you’ll have to meet some requirements to have a smooth ride. You need to have a tax ID number and a Mexican bank account. This is even more important if you intend to sell on Amazon mx.com from within Mexico.

To get your Tax ID or RFC in Mexico, you’ll have to register your business as a company. Here are the steps for registering your business as a company in Mexico.

  • Choose the right type of company or legal structure
  • Send your desired company name to the Ministry of Foreign Relations
  • Prepare the Articles of Incorporation
  • Submit the required documentation to the SAT to obtain a Tax ID
  • Register the company in the Mexican Public Registry
  • Register the company with the Mexican Social Security Agency
  • Open a Corporate Bank Account

After completing the company registration process, you’ll need to provide proof (documents) to show that your business is a legal entity in order to get your Tax ID. Some of these documents are listed below.

  • Certified copy of the Articles of Incorporation
  • Proof of having an office address
  • Certified copy of the Power of Attorney for the Legal Representative
  • The ID of the Legal Representative

If you use Amazon FBA, you won’t need a Mexican Tax ID.

Can I Sell on Amazon Mexico if I Already Sell in the U.S. or Canada?

Of course, you can. If you already sell in the U.S. or Canadian marketplaces, then you already have the North American Unified Account. You won’t experience any difficulty in expanding to the Mexican marketplace because all North American countries use the same account. You can shuffle between all three marketplaces in your seller account and sell to people who use the regular Amazon.com marketplace and those who use the Amazon mx.com marketplace.

You should however remember that Amazon’s FBA fulfillment centers run independently. So if you want to fulfill orders to Mexican customers, you have to use Mexican-based fulfillment centers. 

Related: How to sell on Amazon FBA Canada

Conducting In-Depth Market Research for Amazon Mexico Expansion

Expanding your Amazon business to the Mexican market requires a solid understanding of local consumer preferences, cultural nuances, and trending products. Conducting thorough market research is the foundation of a successful entry into any new market, and the Amazon Mexico marketplace is no exception.

Understanding Local Consumer Preferences

Mexican consumers have distinct preferences and behaviors that should guide your product selection and marketing strategies. Start by analyzing the top-selling products in the Amazon Mexico marketplace to gain insights into what resonates with local buyers. Look for patterns in product categories, features, and price points.

Consider engaging in social media listening to understand what Mexican customers are discussing and sharing online. This can provide valuable insights into their preferences, pain points, and desires. Join local online forums and groups to participate in discussions and learn from direct interactions with potential customers.

Cultural Nuances Matter

mexican culture

Cultural sensitivity is paramount when expanding into a new market. While Mexico shares some cultural similarities with North American countries, it also has unique characteristics that shape consumer behavior. Localize your marketing materials, product descriptions, and images to reflect the Mexican culture accurately.

Mexicans often value personal connections and relationships, so consider incorporating storytelling into your marketing efforts. Highlight how your product can solve specific problems or enhance the lives of Mexican customers. Also, keep in mind any cultural events or holidays that could influence purchasing behavior and tailor your promotions accordingly.

Identifying Trending Products

To tap into the potential of the Amazon Mexico marketplace, it’s crucial to offer products that are currently in demand. Look for trending products that are gaining popularity among Mexican consumers. This could involve conducting keyword research to identify rising search trends or using tools to analyze sales data.

Keep an eye on local news and social media platforms to identify emerging trends. Products that cater to local hobbies, interests, and needs can quickly gain traction. However, ensure that your chosen products align with your brand’s identity and values to establish an authentic connection with your target audience.

Competitor Analysis

Studying your competition within the Amazon Mexico marketplace is vital for setting yourself apart. Analyze the top sellers in your chosen product categories to understand their strategies. What keywords are they targeting? How are their listings structured? What unique value propositions do they offer?

Pay attention to customer reviews and feedback on competitor products. This can provide insights into what customers appreciate and what areas might be lacking in the current offerings. Differentiate your products by addressing these gaps and offering exceptional customer experiences.

Conclusion

Selling on Amazon Mexico is a great move for sellers who are looking to expand their businesses. However, business expansion is not a walk in the park, so before you launch your Amazon Mexico Business, be sure to consider the things we discussed in this post. 

Success on your journey.

]]>
https://www.zonbase.com/blog/starting-an-amazon-mexico-business/feed/ 0
Amazon Sortation Center vs Fulfillment Center — Detailed Comparison https://www.zonbase.com/blog/amazon-sortation-center-vs-fulfillment-center/ Fri, 18 Aug 2023 07:20:11 +0000 https://www.zonbase.com/blog/?p=24745 Amazon has the largest eCommerce market share, with about 37.8% (Source: Statista). The eCommerce giant owes most of its success to the efficient delivery service they provide through Amazon FBA. For context, about 70% of shoppers (especially Prime subscribers) shop from Amazon because of the fast and free shipping. 

Sellers who use Amazon FBA also benefit from Amazon’s reputation of providing swift shipping. If you’ve been wondering how Amazon is able to provide excellent delivery services consistently, we’ll discuss two major delivery structures that make it possible —- Amazon sortation centers and fulfillment centers.

In this post, we’ll do a detailed breakdown to help you understand how they help get your products from supplier to customer. 

Related: Amazon Seller Shipping Options.

Sortation Center vs Fulfillment Center: Overview

What is a Fulfillment Center?

Fulfillment centers are warehouses where FBA sellers can ship their inventory to. Products that are sent to fulfillment centers are stored and shipped by Amazon. 

Amazon fulfillment centers manage end-to-end delivery processes; you can send your products there directly from suppliers, and have them shipped directly to your customers.

Amazon currently has over 175 fulfillment centers across the world. The fulfillment center you’ll be asked to ship your inventory to will depend on your location but you can click the link below to see a list of all the fulfillment centers.

  • Large-scale warehouses handling end-to-end processes, including storage, packing, and order fulfillment.
  • Strategically positioned across the globe, acting as key hubs for fast and reliable shipping.
  • Directly influence delivery speed by managing the entire order processing, resulting in expedited shipping times.
  • Play a substantial role in elevating customer experience through accurate and prompt order fulfillment.

See the list of all the fulfillment centers.

What is a Sortation Center?

Sortation centers or sort centers are intermediate short-period warehouses for outgoing shipments. Products are sent from fulfillment centers to sortation centers where associates prepare and send them for delivery through USPS (United States Postal Service).

Here’s what happens at sortation centers — orders are sent from the main fulfillment centers, then sorted based on the final delivery destination. This way, packages that are to be shipped to the same regions are shipped off together. 

Amazon launched sortation centers in 2014 to help provide shoppers with Sunday delivery and there are sort centers in about 27 states in the U.S.

  • Smaller in size and focus on last-mile sorting and delivery processes.
  • Proximity to Fulfillment Centers ensures efficient sorting and routing before final delivery.
  • Facilitate optimized package routing, reducing shipping timelines and enhancing delivery speed.
  • Enable Sunday delivery and are situated across approximately 27 states in the U.S.

Here’s a list of the Amazon sortation centers and their locations.

Amazon Sortation Center vs Fulfillment Center

Figuring out the difference between sortation centers and fulfillment centers is not the easiest thing to do. But here’s a simple sortation center vs fulfillment center comparison to help make it clearer.

Sortation CentersFulfillment Centers
Smaller in size and handles last-mile sorting and delivery processes.Large warehouses where end-to-end delivery processes like storage, packing, and order fulfillment take place.
Often located close to fulfillment centers, to enable efficient sorting and routing of packages before final delivery.Located in strategic regions across the country or worldwide, serving as key hubs or warehouses for fast and efficient shipping.
Indirectly impact delivery speed by optimizing package routing and reducing shipping timelines through efficient logistics.Directly impact delivery speed as they handle the entire order processing, leading to faster shipping times for customers.
Improve the delivery process by reducing shipping errors and improving package routing.Play a significant role in customer experience, ensuring timely and accurate order fulfillment, leading to higher customer satisfaction.

Are There Other Types of Amazon Warehouses?

Yes, there are other Amazon warehouses apart from sortation centers and fulfillment centers. This sortation center vs fulfillment center comparison will be incomplete without mentioning them. So, a few of them are listed below.

Receiving Centers: These centers play a crucial role in Amazon’s supply chain, receiving and managing large orders of fast-selling products. By efficiently handling high-volume items, they ensure a continuous flow of in-demand products to the main fulfillment centers. 

Delivery Stations: Acting as important hubs in the delivery process, Amazon’s delivery stations are supplied by fulfillment centers. Here, customer orders undergo preparation for the final step of the delivery journey – doorstep delivery. 

Amazon Fresh Warehouses: Amazon Fresh warehouses are specialized facilities designed to resemble grocery stores, complete with distinct sections and aisles. Team members in these warehouses adopt a unique role as “shoppers,” meticulously fulfilling customer orders for fresh produce and other grocery items.

Specialty Centers: Geared towards specific item categories or seasonal demands, Amazon’s specialty centers serve as flexible solutions to cater to varying requirements. 

Conclusion

Hopefully, this sortation center vs fulfillment center guide has helped make the differences between these warehouses clearer. Understanding the various structures that Amazon has put in place for order fulfillment makes it easy to figure out what you need to put in place if you ever decide to manage your logistics alone or sell from an independent website.

]]>
Complete Guide to Selling an Amazon Business https://www.zonbase.com/blog/guide-to-selling-an-amazon-business/ https://www.zonbase.com/blog/guide-to-selling-an-amazon-business/#respond Sat, 12 Aug 2023 06:01:59 +0000 https://www.zonbase.com/blog/?p=24798 Selling on Amazon FBA is a lucrative venture, no doubt, and if you don’t sell there yet, you should consider joining the marketplace soon. However, if you already run a profitable Amazon business, an easy way to make more money is to sell your Amazon FBA business.

Buying an Amazon business is an option for people who want to own Amazon businesses without the stress and groundwork involved in building one from scratch. 

After building your business, earning consistent income from it, and discovering fail-proof strategies for building a successful Amazon FBA business, you can sell it and start another.

If you’ve been toying with the idea of selling your Amazon FBA business, read this to the end.

You’ll learn everything you need to know before selling an Amazon business: valuation, requirements, the sales process, and everything in between.

Selling an Amazon Business: Deciding if Your Business is Sellable

Selling a business is not something you should do on a whim. There are many factors to consider before you decide to put your business up for sale. 

First, consider what potential buyers would be looking out for—what are the indicators of a profitable business? What are the pointers that show that the business is likely to make them money in the long run?

Nobody wants to make an investment that will not yield any return. So, anyone who is considering buying your business wants to be sure that they will get their money back. Potential buyers want to see what loopholes, profit potential, and transferable assets you have to offer. Here’s a more detailed list of the things your potential buyer would consider:

  • Size and age of the business
  • Competition: this depends on the business model you use
  • Fulfillment channel
  • Top and bottom lines
  • Growth potential
  • Timing
  • Suppliers or contractors
  • Workload
  • Seller account health
  • Clear financials
  • Accessible reports
  • Contracts and metrics

If you have all these in place, your chances of getting a good buyer in a short time.

Competition is also one of the most crucial factors that influence the sellability of your business and it depends solely on the business model you use. 

How Business Models Determine the Chances of Selling an Amazon Business

There are three main categories of sellable Amazon businesses: Reseller (Retail arbitrage and wholesale), Private Label, and Proprietary or Branded product businesses. These business models are all profitable, but they all have different sales potential.

Let’s take a look at the pros and cons of each of them.

Reselling Model

This model involves sourcing products in smaller quantities and reselling them on Amazon. Resale businesses can focus on either wholesale or retail arbitrage. With wholesale, you source products in bulk directly from manufacturers. Retail arbitrage, on the other hand, will require you to source products in units from physical retail stores or online stores.

Pros

  • Ease of setup
  • Low startup and running costs
  • There is no need for brand recognition

Cons

  • No entry barriers
  • High or unlimited competition
  • It may be hard to scale due to minimal start-up costs
  • Amazon has too much control over the business
  • Likely supplier issues

Resale businesses are often less attractive and harder to sell because of the enormous competition. 

Private Label Model

This model involves sourcing generic or unbranded products from manufacturers and suppliers, and then rebranding them with your own label and packaging. This allows you to create a unique brand identity and sell products as your own, distinct from those of competitors.

Pros

  • Brand ownership and control
  • Higher profit margins 
  • Increased chances of scalability

Cons

  • High startup costs
  • Increased chances of competition
  • It’s time-intensive and demanding to run

Your chances of being able to sell your private-label business depend on how established and recognized your brand is. Private label businesses are, however, easier to sell compared to reseller businesses.

However, the saleability of a private label business depends on a number of factors. A few of them are listed below:

  • Age of the seller’s account or business.
  • The diversity of your product catalog (and the revenue you’re generating from specific products).
  • The extent of the owner’s involvement.
  • Sales and profit track records.

So if you’ve been searching frantically for tips on “how to sell my Amazon business” and you run a private label business, a good place to start is to focus on improving these factors.

Proprietary/Branded Products

This business model involves creating your own products from scratch. It does not have to be a never-seen-before product; it could be similar to already existing products but with your own unique touch.

The good side of this business model is that, unlike other models, you manufacture the products, so you determine the quality and market value.

Pros

  • Less competition
  • Stable profit margins since you’re in control
  • Stronger supplier relationships
  • You’ll have an independent brand and can survive off Amazon

Cons

  • Time-intensive and costly to start and maintain
  • Risky venture
  • Positive reviews play a crucial role
  • Quality control is essential for customer satisfaction

You have a higher chance of selling your Amazon business if you run this type of business. From a potential buyer’s standpoint, this type of business offers high-profit potential, which can significantly increase the value of your business.

Since this business model revolves around you manufacturing your own products, the sellability of this business type will depend on:

  • How recognized your brand is on and off Amazon?
  • The extent of your involvement and how your actions directly influence your profit margin and market share.

Now that you know where your business falls and how that can affect your chances of selling your business, how do you put a price on it? 

Selling an Amazon Business: How to Value Your Amazon FBA Business

Evaluate Price

Before fixing a price point for your business, the first thing you should do is value your business. Remember that you can only sell it at a price that people would be willing to pay, not what you think it should cost. When it comes to fixing prices, there are always two extremes — you can either underprice or overprice and neither extreme is good for you.

An Amazon business is not something you want to sell at a giveaway price. You also don’t want to risk fixing a price that scares potential buyers away. That’s why valuing your business is the most important of selling an Amazon business, especially one that you’ve put money and time into.

There are two methods for valuing an Amazon FBA business:

  • Seller Discretionary Earnings (SDE) Method
  • Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) Method

The SDE method is typically employed by smaller companies valued at less than $1M while the EBITDA method is used by larger companies valued at more than $1M. 

Factors that Influence the Value of Your Amazon Business

It’s hard to tell the value of an Amazon business right off the bat without putting in the numbers. 

The value of your business depends on the factors outlined below:

  • The age of your business: A business’ profitability can be guessed easily based on how long it has been in operation. Since Amazon businesses may take time to scale, if you put effort into scaling your business and you work on it actively for a significant period of time, you already have an edge. The proven record of sales which new businesses may not have will count for something.
  • Seller’s involvement: Anyone who’s looking to buy an Amazon FBA business is doing so to make a profit. Thus, your potential buyer will want a business that has a high potential for growth and will not require them to invest so much time in running it. So if your business can conveniently serve as a passive income source, your selling price climbs higher a little bit.
  • Product diversity: If you have more than 5 profitable product options in your catalog, you have a high chance of selling your business quickly. And if you sell branded items as a private labeler or a proprietary seller, you stand an even higher chance. Consider the peculiarities and individual profit potential of all the products in your catalog, count the costs involved in sourcing them, as well as all the other expenses that can influence your profit margins.
  • Location: Buyers often place a higher value on U.S-based businesses especially those with documented tax returns. This is expected since businesses with well-organized financial records and documented tax returns can easily get funding for expansion.
  • Seasonality: What product category do you sell in? What kinds of products do you sell? Seasonal products can only make sales during certain periods, so if you sell seasonal items, the value of your business may depreciate a little.
  • Financial track records: If you’re considering selling your Amazon business in the future, you should keep detailed financial records. Anyone who wants to bet their money on your business would want to see previous sales records.

How to Increase the Value of Your Amazon Business

Since the value of your business depends on these factors, if you want to sell at a good price, you should channel your efforts into the smaller factors that can directly influence these factors.

Here are a few tips to help you increase the value of your business.

  • Choose a business model with high-value potential. A proprietary business is top of the list, closely followed by the private label model and the reseller model.
  • Increase your traffic flow to your business both off and on Amazon. This way you can drive conversions and increase your chances of sales. Target the right audience, use social media, run ads, and ensure your listings are well-optimized.
  • Build a good relationship with suppliers. Supplier contacts and exclusivity contracts will come in handy when you’re trying to sell an Amazon business. If you run a private label business or proprietary business, exclusivity contracts help raise the entry barrier and reduce competition. Good supplier relationships can help prevent stockouts, and if you have good supplier contacts to pass on to your buyer, you can increase the value of your business significantly.
  • Diversify your product catalog and avoid selling seasonal items. Only stock profitable products that sell out quickly.
  • What is your brand recognition like? Do you have goodwill with your customers? Positive reviews and a good online or social media presence will go a long way.
  • Do you have a good profit margin? Are your costs eating into your profit? Are your financial records organized? How quickly do your products sell out? These are questions you should answer before you venture into selling an Amazon business.
  • Decide who your ideal buyer is. Who are they and what are they likely to care about? What additional perks can you throw in to pique their interest? 

Selling an Amazon Business: Different Selling Methods

There are different approaches to selling an Amazon business and each method comes with its own pros and cons. Some of them are outlined below:

Use an Amazon business broker

Amazon business brokers offer their expertise to sellers with businesses valued over $25,000 who lack the experience, time, or patience to secure the best deal for their ventures. 

Brokers shoulder most of the workload, guiding sellers from inception to closure. They also help to maximize your business’s value and ensure the implementation of appropriate legal safeguards.

In addition to their expertise, brokers maintain a network of potential buyers, primed and prepared to make a purchase. When considering working with a broker, providing them with comprehensive and detailed information is paramount. 

  • Selling timeframe: 1-2 months
  • Necessary time investment: You don’t have to spend much time on the sales process, the brokers will do most of it.
  • Costs: Typically ranges between 10-15% commission, plus legal fees, taxes, and retainers.

Marketplace

flippa

You can also put up your business for sale on business listing marketplaces. The only downside is that these marketplaces are often crowded and you have to go the extra mile to make your business stand out if you want to get a buyer quickly.

If you can find your way around the process of selling an Amazon business or you don’t want to pay a broker, this may be a good option for you.

Conversely, if you’re still a rookie, selling your business on a marketplace may not be the best option else you’ll end up undervaluing your business and losing money as a result. 

Business listing marketplaces are easy to navigate for anyone who’s looking to sell an Amazon business.

Flippa.com and BizBuySell are two popular business listing marketplaces you can check out. 

  • Selling timeframe: 6-9 months
  • Necessary time investment: You’ll handle the entire sales process
  • Costs: A few hundred dollars

Auction

You can also put your business up on an auction platform. These platforms operate like listing marketplaces — you manage the selling process. The only difference is that it uses a competitive approach, you fix a price and buyers place bids to buy your business. The auction method is best for businesses that are valued at less than $5,000.

Unlike marketplaces, selling an Amazon business on an auction platform will probably cost close to a broker’s fee.

  • Selling timeframe: 7-28 days
  • Necessary time investment: Can be demanding because you’ll have to handle the entire sales process
  • Costs: Fixed listing fee and a success fee of 10% upon closing

Direct

This method involves you reaching out to potential buyers directly. You can reach out to business owners in the same niche via cold emails or calls. 

This selling method can be quite tasking especially because you’ll have to research buyers and contact them, then negotiate and find a favorable price. 

  • Selling timeframe: 3-24 months
  • Necessary time investment: You’re solely responsible for the sales process
  • Costs: Only legal fees and taxes

Funding Options for a Smooth Sales Process

Funding Options

Amazon businesses typically cost a lot of money, so it’s pretty unlikely that anyone who wants to buy your business would be able to pay you in full upfront. Although this would be nice, buyers are also inclined to look out for themselves — this could be by requesting a flexible payment plan or trying to pay in a way that aligns with their risk appetite. 

When it comes down to it though, the goal should be a win-win for both parties. So, here are a few funding options you can suggest to potential buyers. 

  • Cash: This may be an outright payment for buyers who can afford to pay in full, or a down payment for buyers who cannot pay upfront. Buyers who cannot afford to pay in full can source funds through loans, asset or collateral-based lending, peer-to-peer lending platforms, and partnerships.
  • Holdback agreement: Here, the rights of ownership will be transferred gradually, in stages, until all the transaction conditions have been met. These conditions may include meeting certain performance targets, verifying costs that are difficult to estimate in the short term, and ensuring that the seller has fulfilled all of their obligations prior to the sale.
  • Earn-out agreement: This is quite similar to the holdback agreement. The only difference is that the ownership rights are transferred partially until certain conditions are met. These conditions might involve meeting certain targets within a timeline and verifying costs that are harder to determine in the short term (like chargebacks or refund rates). 
  • Seller financing: This funding option allows the seller to receive part payment for the business in anticipation of the business’s future earnings. The outstanding balance will be paid over a fixed period of time, based on the business’s track record of revenue. This is the most risky financing option because if the business is unable to repay the cash, the original owner retains the right to the business without being obligated to refund any of the payments already received.

How to Sell Your Amazon Business: Step-by-Step Sales Process

Your business sales process can be faster or shorter depending on your business model and the selling method you decide to follow. But regardless of the method or business model, the process is the same. Here’s a simple breakdown:

  • Decide that you want to sell your business
  • Put a value on it — you can use the valuation tips we provided.
  • Create a detailed business brochure (it should contain every detail about your business’ finances, operations, records, etc.).
  • Put your business up for sale or find buyers yourself.
  • Negotiate and settle for a favorable price.
  • Finalize the transaction and transfer process. Money is usually held in escrow until everything is in order, this way the seller and buyer are protected.
  • Walk the buyer through the ins and outs of your business and transfer the ownership rights completely. 

Related: Managing Amazon Cash Flow

Things to Put in Place Before Finding Buyers

Finding buyers is a crucial step in selling an Amazon business. After deciding on a selling method or platform, there are some things you need to put in place before getting a buyer.

  • Documentation: Keeping clear financial records can help make the selling process faster. If you’re not conversant with financial calculations and record keeping, you can use software for this. With the ZonBase profits tool, you can see a clear view of your business’s finances, and track your expenses and revenue.
  • Operational procedures: Documenting your standard operating procedures (SOPs) can make your business more attractive to buyers. Clear standard operating procedures make it easy for buyers to learn the ropes of your business. 
  • Outsourcing: Automating most of your business operations makes your business attractive to buyers. Anyone would be willing to pay a premium for a business that allows them to earn passive income. If you already outsource most of your business tasks, you have a higher chance of securing a buyer early. 

Negotiation Tips for Selling an Amazon Business

Negotiation is one of the most important things you should focus on when you set out to learn how to sell your business.

You don’t want to give your business away at a ridiculous price but a potential buyer will also try to secure the best price. Here are a few tips to help you arrive at a good deal.

  • Plan your exit carefully
  • Define who your ideal buyer is; What are their goals? What do they want? What do you have to offer?
  • What kind of deal do you want? A quick one or the most profitable one? How long are you willing to wait?
  • Put your financial records together in a way that shows your business’s potential for growth
  • Put powder in your keg — create a sweet spot that makes buyers unable to resist your offer.

FAQs About Selling an Amazon Business

  • How much can you sell your Amazon business for?

The value of your business depends on the valuation method you use; SDE or EBITDA. If you use the SDE method, your business is worth x4 of its profit.

  • Is Amazon FBA still profitable?

Yes, selling on Amazon is still very worth it. If you cannot afford to buy an existing business, you can start your own business from scratch.

Conclusion

Selling an Amazon business can be a great way to reach your financial goals. Following the tips we have provided can help you secure a buyer and get the best deal. 

]]>
https://www.zonbase.com/blog/guide-to-selling-an-amazon-business/feed/ 0
Amazon Image Guidelines and 7 Best Practices for Product Photography https://www.zonbase.com/blog/amazon-image-guidelines-and-best-practices/ https://www.zonbase.com/blog/amazon-image-guidelines-and-best-practices/#respond Sun, 30 Jul 2023 10:33:21 +0000 https://www.zonbase.com/blog/?p=11947 Amazon is an ultra-competitive marketplace with over 300 million active customers and 12 million products in its catalog. So, sellers who want to succeed on the platform must come up with strategies to gain visibility and improve their conversions. Listing optimization is one of the most effective visibility strategies. And the most successful Amazon FBA sellers are those who have mastered listing optimization. 

Product images are an essential part of every Amazon listing, and if you want to capture the audience’s attention, your photos must be top-notch. Adding photos to your listings may seem easy, but there are some Amazon image guidelines that you have to follow. 

If you read to the end, we’ll tell you everything about Amazon product photos. We’ll also go over some guidelines for Amazon product photography. Then, we’ll show you some Amazon image best practices to make your photos stand out. This is supposed to be a complete guide to optimizing your listings with product photos. So, we’ll start with the basics first.

Let’s get right into it.

Related: The Ultimate Guide to Starting a Successful Amazon Business

What is Amazon Product Photography?

The concept of Amazon product photography involves taking clear, attractive photos that persuade buyers to purchase a product. This type of photography focuses on highlighting the product’s features and benefits while maintaining a pleasing aesthetic. 

Do Your Product Photos Affect Your Conversion Rates?

The average online shopper has an attention span of about 8 seconds. What this means is that an average customer only has about 8-10 seconds to get the message from your listings. Only a few shoppers will take their time reading through your listings. So how do you get them to see and purchase your product? The best way is to use attractive product photos and videos that capture the full essence of your product. 

It’s a well-known fact that listings with higher-quality photographs convert better. According to a 3M survey, the human brain can process a picture in 13 milliseconds. A human can supposedly comprehend an image 60,000 times faster than text, which is why superb photography is so vital.

Your conversion rates are likely to increase if your product photos are clear, detailed, and attractive. Why? Because you have communicated your product’s value through attractive photos and have answered their questions without saying a word. 

How to Get Amazon Product Photos

There are two ways to get product photos for your listings. You can either choose to take product pictures yourself or you can hire a professional to do it for you. Hiring a professional may be more expensive, so if you want to save money, you can consider doing the shoot yourself. This should not be an issue if you have a clear camera and good lighting or backdrop. If you decide to shoot product photos yourself, you will have to dedicate time to editing the pictures. And since editing is a lot of work, it may be stressful and time-consuming. 

So it’s best to hire a professional for your product photoshoot if you do not have the skills and resources it requires. This way, your photos will have a professional touch and you can be sure they’ll portray your products in the best way possible. What if you can not afford to hire a professional? Read to the end to see our Amazon image best practices to help you take great product photos. 

Amazon Image Guidelines

It is common knowledge that AMZN has tons of restrictions and requirements for different business processes. So, before you start taking and uploading product photos, be sure they are in line with Amazon’s requirements. Here’s a list of the Amazon image requirements you should adhere to when uploading photos to your listings. 

  • Your photos must represent the product well and show exactly what is on sale.
  • The product and all its features must be obvious.
  • The backdrop of the MAIN pictures should be pure white (RGB color values of 255, 255, 255), as this mixes nicely with the search and product detail pages.
  • The main pictures must be professional shots of the real product you’re selling (graphics, illustrations, mockups, or placeholders are not allowed). You must not include accessories and props that may cause customer confusion. Also avoid using non-product language, logos, watermarks, or inset photos.
  • Your product titles and pictures must tally.
  • On the longest side, photos should be 1,600 pixels or larger. The website’s zoom function is enabled because of this minimum size requirement, and the use of Zoom has been shown to increase sales.
  • Photos must not be more than 10,000 pixels on the longest side. 
  • JPEG (.jpg), TIFF (.tif), and GIF (.gif) file types are all accepted by Amazon. However, JPEG is recommended.
  • Animated gifs are not supported on AMZN.
  • Product photos must not be sexually provocative or contain nudity.
  • For shoes, the main photo should be of a single shoe, facing left at a 45-degree angle.
  • The main pictures of women’s and men’s clothing should be shot on a model.
  • All photographs of children’s and babies’ clothing should be shot flat (off-model).

Make sure you keep these image guidelines in mind when shooting product photos for your listings.

Types of Amazon Product Images

There are different types of product photos, but a basic plan should contain these three types of photos.

Main Amazon Image

This is the first picture that customers see when they come across your listings. So, it’s important that your product photos capture customers’ attention and convince them to spend more time on your listings. Ensure you stick to AMZN’s requirements when uploading your main product photos. 

It is important that there are no distractions in the background of your main photos. Also, ensure you only upload pictures that contain just the products that you’re offering. It’s very easy to lose a sale because your product photos are confusing.

The picture above shows what a great product photo should look like. Customers can easily tell what they’ll get when they place an order. This main photo ticks all the boxes: 

  • It has a white background 
  • There are no additional props, watermarks, or inset images.
  • It is a clear, detailed picture that shows exactly what the buyer will get after unboxing the product.

If your main photo does not conform to these requirements, Amazon may suppress your listing. Now that you know what your main Amazon photo should look like, here’s what it shouldn’t look like.

What the Main Photo Should Not Look Like

  • It should not carry any of Amazon’s logos, trademarks, or variations. This includes, but is not limited to, words like Amazon, Prime, Amazon Alexa, Premium Choice, or the Prime Badge. Check the trademark usage guidelines to learn more about this.
  • It should not contain any sexually provocative or nude images.
  • It should not be blurry, pixelated, or have rough edges.
  • A product that takes up less than 85% of the frame on the longest side’s limiting dimension.

If you sell clothing items, accessories, shoes, handbags, luggage, and jewelry, there are some additional things to take note of.

  • Avoid using photos with a background that isn’t completely white (RGB less than 255).
  • Avoid having text, logos, borders, color blocks, watermarks, or other images over the top of a product or in the background.
  • Avoid using multiple photos of the same product.
  • Avoid using photos where the product has been cropped or covered by a frame. This doesn’t apply to jewelry, or necklaces, to be precise.
  • Do not use props excessively in a way that covers or surrounds products.
  • Only take product pictures of models in the standing position (no kneeling, sitting, or leaning).
  • Do not use visible mannequins except for stockings and socks.
  • Avoid using pictures of kids’ or baby leotards, underwear, or swimwear that have been taken on a model.

Going by the above points, these product photos are unsuitable for an Amazon product listing. Always follow the Amazon image guidelines when including pictures in your listings. This will save you from the stress of trying to recover a suspended listing. 

Additional Images

Now you’re probably asking, “How many images can you have on Amazon?” Amazon allows you to upload up to 9 photos on your listings, including your main image. However, only the first 7 pictures will be shown on your actual listing, as seen in the example below. Feel free to play around with your additional photos. You can add nice graphics and text in the background or use fun, attractive backdrops. You can even add infographics, size charts, and other informational texts. 

Infographic Images

Infographic images, also known as infographics, are visuals with text that highlight the benefits of your product. These are the product photos that emphasize all of your product’s top qualities and why it’s the best choice for buyers. Here’s an example of an infographic:

Lifestyle Images

These kinds of pictures show your products in use. The goal of lifestyle photos is to depict functionality and show customers how they’ll enjoy using your product. Since your customers cannot see or feel your product in person, these pictures will help them visualize what using your product will be like.

How to Combine Amazon Images on Your Listing

  • Image 1: Main Image/Hero Shot
  • Image 2: Shot displaying all components and/or a shot showing measurements
  • Image 3: Infographic of features
  • Image 4: Infographic of features
  • Image 5: Infographic of features
  • Image 6: Lifestyle
  • Image 7: Lifestyle

Of course, you can mix images as you please, but the main photo should be the focus. So, ensure it’s in line with the guidelines listed above. 

Top 7 Amazon Image Best Practices

Now that you know all the important Amazon image guidelines, let’s show you how to take product pictures for Amazon. If you have a background in photography, you will be able to take great product pictures with your smartphone. However, seeing as your product images are very important, it’s best to only have high-quality, professional photos in your listings. 

It’s understandable if your reasons for taking your product pictures yourself border around costs. However, you will have to at least learn the basics of product photography to ensure you get great images. Whether you do it yourself or hire a professional, these tips will help you get the most out of your product photoshoot.

Let your Main Image Take the Shine

Since your main picture is the first thing customers will see, you have to make an impression with it. Follow Amazon’s image requirements and use a bright, clear picture that draws customers’ attention. Remember to use a white background and make sure your product takes up at least 85% of the image. There’s no harm in taking a look at your competitors’ listings for ideas. Don’t forget to include some additional images of your product from different angles.

Use Up All the Available Space

Don’t try to manage your space, upload at least seven images taken from different angles. Also, provide some information within the images. If you have to, hire models so you can help the customers picture themselves with the item. Also, include relevant images of your product in use. Then, switch up the backgrounds of your additional images and use infographics where necessary. 

Try Not to Create Regular Lifestyle Images

As we already mentioned, the goal of lifestyle images is to show your products in use. So, ensure you do just that, and if you’ll be using a model, use someone that’s within your target audience. You can ask to take pictures of your friends and family while they’re using your product, and all of this can be done using a phone. Here’s an example of a great lifestyle image:

If you’re unable to take your own lifestyle images, you can photoshop people using your products. We strongly suggest you hire someone to do it for you if you’re unsure of your Photoshop abilities. Images that have been badly altered risk portraying your goods and brand in a poor light.

Zoom in on Product Features

It is extremely important to show your product to your customers from different angles since they cannot actually see it in person. This can be achieved by zooming in on different parts or features of your product. See below:

This image highlights the selling points and important features of the product and this is a great way to persuade customers to buy it.

Add Text to Your Images

Make your product photos more engaging by adding relevant product information. Use consistent fonts and colors to create a unique brand identity on Amazon.

  • Highlight the product’s best features/benefits
  • Specifications such as sizes, dimensions, and other important information should be included
  • Describe the materials that went into making your product
  • Ingredients should be displayed if it is a food product or nutritional supplement
  • Compare your product to your competitors and show why yours is the better option.

Use 3D-rendered Images

You can include a 3D cross-section of your product that highlights a key benefit that isn’t obvious from the outside. By looking at one single image, the consumer can learn how the product works and about all the materials that it is made of. Although this is not necessary for every item, it may aid customers in understanding the complicated mechanism behind a product.

Work with a professional

It’s important that you consider hiring a professional if you’re not very confident in your photography skills. Your images play a major role in convincing buyers to purchase your products, so low-quality product images are a no-no. A professional photographer will charge between $200 and $300 to snap your main product image, as well as six other angles, infographics, or lifestyle shots. You can also consider using editing software or outsourcing your editing needs to a professional team. ZonBase Amazon software offers a photo enhancement service that allows you to outsource photo editing to a team of experts. Keep reading to learn all about the software. 

How to Add Images to An Amazon Listing

Images are an important part of your product listings, so if a product doesn’t have an image available, you should add one. Here’s how to add images to your product listing:

How to Add Images to an Existing Listing

  • Select ‘Manage Inventory’ from the Inventory tab on your dashboard.
  • Click ‘Manage Images’ from the Edit drop-down menu for each product on the far right.
  • Under the Images tab, scroll down to the section titled Your image recommendations.
  • Click Upload to add a picture to any of the empty spaces. The MAIN picture appears in the top left image slot on this portion of the page.
  • Click the Open button to open an image from your computer.
  • At the bottom right of the page, click Save to add your image.

How to Add Images to a New Listing

  • Go to the Inventory tab in Seller Central and click on ‘Manage Inventory’.
  • Next, click on ‘Add a product’, located at the top-right of the page, or click Add a product from the Inventory menu in Seller Central.
  • To create a new listing, click on ‘Create a new product listing’ and browse the categories.
  • Under the Vital Info tab and Offer tab, fill out the required fields.
  • Click on ‘Add images’ in the images tab.
  • Next, click Browse for the first empty image placement. Upload the main image in the top left image slot in this section of the page.
  • Choose an image from your computer, then click ‘Open’.
  • Click ‘Save and finish to complete the upload.

How ZonBase Can Help Improve the Quality of Your Product Images

ZonBase is an all-inclusive Amazon software that provides a complete set of Amazon seller tools. The software offers a photo enhancement service that allows sellers to outsource their photo-editing needs to a team of experts. All you’ll have to do is to decide on how many product images you want to work on, then send in your pictures. The ZonBase team will work on them and you’ll get them back in a matter of days. Nothing complex at all. Here’s an example of what you’ll get when you sign up for the ZonBase Photo Enhancer service.

ZonBase offers three pocket-friendly plans for this service and if you sign up for the service, you stand a chance to have your listing optimized too!

Does ZonBase only offer the photo enhancement service? Absolutely not. ZonBase also offers an effective set of product research, keyword research, and listing optimization tools. In addition to this, it offers a sales estimation and analytics tool. 

If you’re looking to scale your business to profitability, you should consider investing in the software. You get access to 13+ effective tools and excellent value at an affordable price. You can sign up for a 7-day free trial to see for yourself.

Sign up for a free trial.

Conclusion

The higher the quality of your Amazon image, the more likely you are to convert a visitor into a buyer. Also, remember that your product images are the easiest way to sell your products to a customer without saying anything. 

So, take time to create the best possible images for your brand. Consider your target audience and the kind of information that matters to them. Remember, the goal is to persuade them, so take their needs into consideration, then make your product images informative and eye-catching, and don’t hesitate to use software or work with professionals if you have to. 

]]>
https://www.zonbase.com/blog/amazon-image-guidelines-and-best-practices/feed/ 0
Proven Guide to Using an Amazon FBA Prep Center in 2024 https://www.zonbase.com/blog/using-an-amazon-fba-prep-center/ https://www.zonbase.com/blog/using-an-amazon-fba-prep-center/#respond Wed, 26 Jul 2023 10:44:19 +0000 https://www.zonbase.com/blog/?p=24696 Finding a profitable product and creating well-optimized listings is not the be-all and end-all of starting an Amazon business. When you decide to sell on Amazon, you’ll have to choose a fulfillment option.

If you’re not up for the stress of picking, packing, and shipping orders yourself, using Amazon FBA will be your best bet. But here’s the part you probably don’t know about — Amazon has a ton of prepping and shipping requirements and as your business grows, you may find it difficult to keep up with these requirements. At some point, you may have to outsource to an Amazon FBA Prep center. 

In this post, we’ll tell you everything about FBA prep centers — why you should use them, and factors to consider when choosing one.

What is an Amazon FBA Prep Center?

An Amazon FBA Prep Center, also known as a Fulfillment by Amazon Prep Center, is a service provider that assists Amazon sellers in preparing their inventory for fulfillment through the FBA program. 

So if you do get to a point where you’re unable to keep up with Amazon’s packaging, prepping, and shipping requirements, you can simply outsource these tasks to an FBA Prep center.

Preparing and shipping your inventory to an FBA fulfillment center involves a lot of work. You’ll have to create an FBA shipment and label it with an FNSKU barcode according to Amazon’s guidelines. By outsourcing the prep work to a prep center, you can save time, reduce stress, and focus on other aspects of your business.

Amazon FBA Prep centers typically provide the following services — product inspection, labeling, poly-bagging, bundling, and repackaging. 

They ensure that the products are accurately labeled with Amazon’s barcodes, packaged securely to prevent damage during transit, and compliant with Amazon’s packaging guidelines.

Here’s more detailed information about the services that FBA prep centers offer.

What Services Do FBA Prep Centers Offer?

Any FBA Prep center you decide to outsource your product prepping and packaging to will primarily be responsible for wrapping your goods with the correct packaging materials. But beyond that, prep centers handle a variety of tasks. Some of them include:

  • Product Inspection: FBA prep centers conduct thorough inspections of your inventory to ensure that products meet Amazon’s quality standards. They check for any damages, defects, or discrepancies, helping you maintain a reputation for delivering high-quality products to customers.
  • FNSKU Labeling: Amazon requires products to have proper labeling and barcodes for easy tracking. Prep centers handle this task efficiently, ensuring that each item is correctly labeled with an FNSKU (Fulfillment Network Stock Keeping Unit) barcode. 
  • Product Bundling: If you offer bundled or multipack products, FBA prep centers can assemble and package them according to Amazon’s guidelines. They ensure that the bundled items are correctly grouped, labeled, and ready for fulfillment, saving you time and effort in the process.
  • Packaging and Poly-Bagging: FBA prep centers expertly package items, using appropriate materials and techniques to safeguard them from any potential damage. They may also provide poly-bagging services to protect individual items and prevent them from getting damaged in transit.

Now that you know what services Amazon FBA prep centers offer, why should you consider using them?

Benefits of Using an Amazon FBA Prep Center

The time-saving benefit is the most obvious perk of outsourcing product prepping and packaging to an Amazon FBA prep center since they take most tasks off your plate. But what other benefits make the service worth your coins? Here are a few of them:

  • Easy way to store products: Need a better way to warehouse products without sending them to a fulfillment center? Use an FBA prep center instead. This works even better for wholesalers or arbitrage sellers who do not have enough storage space at home.
  • Faster shipping process: One of the advantages of working with a prep center is their ability to process inventory quickly. With turnaround times ranging from 24 to 48 hours, your products will be ready for sale on Amazon in no time. This saves you the time and effort it would take to process and ship everything yourself, especially if you’re working alone.
  • Some prep centers are strategically located in states without sales taxes. By using their address for your inventory, you may be able to save money on sales tax, further optimizing your business expenses.
  • Ease of product bundling: If you sell bundled products on Amazon, a prep center can assist you in ensuring that your products are correctly packaged and labeled. They have the expertise to handle bundling and ensure compliance with Amazon’s requirements.
  • Greater scalability: Using FBA prep centers allows sellers to scale their business more easily. As order volumes increase, the prep center can handle higher quantities of inventory and ensure that products are processed and shipped in a timely manner. This scalability eliminates the need for you to invest in additional storage space or hire additional staff to handle the growing workload.
  • Strict compliance with Amazon’s requirements: Amazon has strict guidelines for packaging, labeling, and quality control. FBA prep centers are well-versed in these requirements and ensure that products meet the necessary standards. This helps sellers avoid potential penalties, customer complaints, and negative impacts on their seller metrics.

If you’re already considering using an Amazon FBA prep center, then you’re probably wondering how much it costs. 

How Much Does it Cost to Use an Amazon FBA Prep Center?

There are many Amazon FBA prep centers and most of them are independent entities. So, the rates are likely to vary from provider to provider, but on average, most prep centers charge between $1 – $2 per unit.

As with most Amazon fees, the charge depends on the size of your products and the volume of the inventory you send for prepping. 

So how do you calculate the exact costs of using a prep center? Some FBA or FBM calculators will allow you to obtain an estimate of your total costs including prep expenses.

Factors to Consider When Choosing an Amazon Prep Center

Now that you know why you should use an Amazon FBA prep center and how much it would cost to use one, let’s discuss the factors you should consider when trying to choose a prep center.

  • Experience and reputation: Consider the experience and reputation of the prep center. Look for reviews, testimonials, or references from other sellers who have used their services. A reputable prep center with a track record of success is more likely to deliver quality services and meet customer expectations.
  • Location and shipping capabilities: A strategically located prep center can help reduce shipping costs and transit times. Additionally, ask relevant questions to help you confirm their shipping capabilities. Also, find out if they have established partnerships with reliable carriers and can handle international shipping if required.
  • Pricing structure: Pricing is an essential factor to consider before deciding to use any prep center. Some may charge on a per-item basis, while others may have flat monthly fees or a combination of both, so be sure to confirm before you get into the process. Ensure that the rates align with your budget and that the services they offer are commensurate to their rates. Also, ask about any additional fees, such as storage fees or handling charges, to avoid surprise fees that may end up eating into your profit margin.
  • Turnaround time: Go for prep centers that guarantee a quick turnaround time of about 24-48 hours. This ensures that your products are swiftly prepared for shipment and can start generating sales on Amazon without unnecessary delays. Time is of the essence in the competitive marketplace, and a fast and efficient prep center will help you stay ahead of the game.
  • Sales-tax-free state: If you decide to resell products on Amazon, one thing you need to do is find a way to cut down taxes, or else your profit margin will only get narrower. A simple tip is to work with FBA prep centers that are located in states that do not charge sales taxes. If you ship products from overseas, consider using prep centers located in states like Delaware, Alaska, Montana, New Hampshire, or Oregon, this way you can save money on taxes.

One thing you should keep in mind when you decide to use Amazon prep centers as a reseller is that you’re more likely to save money when you sell fast-moving, small, and lightweight products. 

The question is how do you find small and lightweight products to resell on Amazon? This is where ZonBase reseller tools come in.

Related: Tips for Starting an Amazon Resale Business.

How ZonBase Tools Can Help Resellers Find High Demand & Low Competition Products

ZonBase recently launched a collection of tools for wholesalers and arbitrage sellers. Using these tools, you can find profitable products and discover reliable suppliers to source them. Here’s a brief overview of the tools.

  • Zon Scanner: Zon Scanner is a mobile app that allows you to scan any product’s barcode and access crucial product and sales information in minutes. So, if you walk into a retail store and find a product you’re interested in selling, all you have to do is scan the barcode and you’ll be able to view all the information you need to confirm its profitability. 

The best part is that the app also allows you to enter your costs and obtain an estimated profit margin for any product you intend to sell.

The app is compatible with both iOs and Android devices and is available for download on Google Play Store and App Store.

  • Zon Grading: Zon Grading is quite similar to Zon Scanner, only that it is not an app and is best suited for wholesalers. You can upload your wholesale product options on the app and confirm their profitability. 
  • Supplier: The supplier tool provides access to an extensive list of authentic suppliers in any product category. It also provides all the details you need to confirm the authenticity of any supplier you choose to use — from contact numbers, to email addresses and website addresses.

You can try out these tools for free for 7 days when you sign up for a free trial of ZonBase.

Final Words

When you decide to become a reseller on Amazon, the first step is to find a profitable product and then an authentic supplier to source it. If you decide to use an Amazon FBA prep center, be sure to choose based on the factors we discussed in this post. 

]]>
https://www.zonbase.com/blog/using-an-amazon-fba-prep-center/feed/ 0
Amazon FBA Label Requirements: Everything You Should Know in 2024 https://www.zonbase.com/blog/amazon-fba-label-requirements/ https://www.zonbase.com/blog/amazon-fba-label-requirements/#respond Sun, 23 Jul 2023 21:09:05 +0000 https://www.zonbase.com/blog/?p=24730 Deciding to sell on Amazon through FBA (Fulfillment by Amazon) is a smart move. Amazon will be storing your products and shipping orders on your behalf, you’ll have to package your products and ship them to a designated Amazon warehouse. This takes a lot of stress off you, leaving you with more time to focus on other important tasks.

Sounds nice, right? And it is, for the most part only that Amazon has many packaging and labeling requirements that you have to adhere to. 

Skipping one step while packaging your products and prepping to ship to the fulfillment center can cause Amazon to return your inventory or cause you to incur additional fees.

So in this post, we’ll tell you everything you need to know about Amazon FBA Label Requirements — packaging and shipping requirements, as well as everything you need to know about barcodes.

FBA Product Barcode Requirements 

Since you’ll be shipping through FBA, your products are going to be huddled up together with different products from different sellers across the world. To avoid shipping mix-ups and missing inventory issues, Amazon uses a number of barcodes for product and seller identification. 

Barcodes make it easy for Amazon to match products (and orders) with the right seller account. So the first requirement to keep in mind is that barcodes are an essential part of your packaging process and a major Amazon FBA labeling requirement.

Amazon uses two barcodes — FNSKUs and Manufacturer barcodes, and you have to label your products with the appropriate ones before sending them to a fulfillment center.

Manufacturer Barcodes

Manufacturer barcodes are generic barcodes that Amazon uses for product identification when the seller does not opt for an Amazon-generated barcode (FNSKU). 

Since manufacturer barcodes are from product manufacturers and often appear on product wraps, they cannot be used for specific seller identification. Why? Because different sellers can sell the same products and identical products from the same manufacturer will have the same manufacturer barcode.

If you send your inventory to a fulfillment center without an Amazon barcode, Amazon may fulfill orders by simply picking a product at random. The exact product — but it could be yours or another seller’s. This is called commingling and in some cases, the product that ends up being shipped to your customer may be of lesser quality. Of course, this may lead to more returns or unsatisfied customers who never purchase again.

If you want to avoid commingling, all you have to do is label your products with an Amazon barcode or FNSKU.

Amazon FNSKU Barcodes

FNSKU Barcode

FNSKU means Fulfillment Network Stock Keeping Unit. It is a unique product identifier that makes it easy for Amazon to trace products to specific seller accounts.

Sellers who do not opt for the manufacturer barcode option must label their inventory with FNSKUs. 

You have three options for labeling your products with barcodes. 

  • You can print and label the barcodes on each unit yourself during FBA shipment creation. 
  • Alternatively, you can request your supplier to print the barcode on your product packaging. 
  • Lastly, you have the option to let Amazon label your products for a fee.

If your product lacks a manufacturer barcode, you can apply for a GTIN Exemption in Seller Central. This way, you can generate an Amazon barcode for all your products. 

After choosing your preferred barcode labeling option, you’ll still have to follow some other requirements.

Related: All you should know about Amazon Seller SKU and FNSKU.

Amazon FBA Label Requirements

  • Each product unit must have a unique FNSKU that corresponds to its specific variation (e.g., size or color).
  • The unit must have an easily accessible exterior scannable barcode with human-readable numbers, following FBA product barcode guidelines.
  • To prevent confusion upon arrival at a fulfillment center, remove, cover, or render unscannable any existing scannable barcodes on shipping boxes using opaque tape or a black felt-tip marker.

You can learn more about Amazon FNSKU label requirements or barcode requirements by checking out these FBA product barcode requirements.

Amazon FBA Packaging Materials

Packaging Materials

Adhering to Amazon FBA label requirements does not begin and end with choosing and labeling with appropriate barcodes. After labeling with your barcodes, you also have to follow Amazon’s packaging guidelines strictly. 

Amazon labeling or packaging requirements vary depending on the kind of products you sell. However, before we talk about the packaging requirements, let’s talk about some packaging materials and the kind of products you’re expected to use them for.

Standard Box: To ship an item in a standard box, ensure the dimensions precisely accommodate the specified item. The box must successfully pass a rigorous three-foot drop test to ensure its structural integrity and avoid any damage or breakage upon impact. In case the box fails the drop test, the item should be placed inside a poly bag for extra protection.

Amazon also has standard box dimensions and weight and it is important to keep this in mind when shipping boxes to a fulfillment center. The maximum box size and dimension is 25 inches on all sides and 50 lbs.

Going off the maximum size and dimension may lead to shipping delays or restrictions. In cases where the product already exceeds the stipulated box size, here’s what you should do:

  • For packages containing a single item weighing more than 50.00 lb, affix a visible label indicating “Team Lift” on both the top and sides of the box. 
  • For packages with a single item exceeding 100.00 lb, ensure you attach a clear label stating “Mechanical Lift” on both the top and sides of the box.

You’ll need two different types of labels — an FBA Box ID Label and a Carrier label.

The FBA Box ID label is very important. You’ll need to affix a unique FBA ID label to each box before shipping. This way, Amazon can identify the items in the box.

Your FBA Box ID label should contain the following information. 

  • Ship From: The seller’s name and address.
  • Ship To: The Amazon warehouse address.
  • FBA shipment identifier: This unique barcode provides an easy way for Amazon to identify your packages.
  • Internal use only: Beneath the FBA barcode, you will find crucial data that includes the product unit quantity, a statement for Mixed SKU (pertaining to parcels with different SKUs), and a statement for Partial case (relevant for large boxes containing multiple parcels). This information is essential for efficient inventory management and accurate order processing.

A carrier label is an identification label that helps to explain the content of your package. The label usually depends on the shipping carrier you use and should contain the warehouse address, barcode, weight, and name. 

If you’re working with carriers that Amazon partners with like FedEx, ACPS, and UPS, you can generate your labels from Seller Central but if you work with independent carriers, you can get the labels from them.

Here are some Amazon FBA label requirements to keep in mind when fixing your FBA box ID or carrier label.

  • Attach the FBA Box ID label in a visible place.
  • Ensure the labels are not closer than 2cm to any of the edges of your box. 
  • The carrier label must be near the FBA box ID label 
  • Ensure that your boxes have a unique carrier label and FBA box ID label before shipping them to a warehouse. 

Poly Bags: Poly bags are often used to provide extra protection for packages when shipping. Poly bag packaging is quite straightforward, however, because of the danger that poly bags may cause when handled wrongly, especially by children, Amazon has put some requirements in place. 

  • Sellers should have a suffocation label imprinted onto the bag. 
  • Use transparent poly bags, with a thickness of at least 1.5 Millimeters.
  • Avoid using poly bags made out of flimsy material, so that the content inside cannot puncture the bag.

Bubble Wraps or Blister Packs: Bubble wraps are often used for delicate items that can get damaged in transit, and heavy products. Blister packs on the hand come in handy for small items like toothbrushes that may require sterilization. 

These are the recommended packaging materials to use. Apart from these, you can also use Full sheets of paper (heavy-weight kraft paper is best), Inflatable air pillows, and Polyethylene foam sheeting.

Packaging materials like Styrofoam, Foam strips, Crinkle wrap, Shredded paper, and Thermocol chips are however not allowed.

It’s important to choose the right packaging materials for the products you sell. Also, remember to follow the Amazon FBA label requirements for your product type and packaging material. 

Amazon FBA Label Requirements or Packaging Guidelines

Amazon labeling requirements vary depending on the products you sell and how you intend to package them. Here’s a detailed breakdown.

For Standalone Products or Single Units

Clothing items and footwear belong in this category. Use poly bags for clothing items and use boxes for footwear.

  • Add a suffocation warning label on poly bags with an opening of about 5 inches or more.
  • Use an easy-to-remove tape for products that will not be boxed.
  • Affix barcodes in a way that can be scanned without tampering with the product’s packaging.
  • Follow the recommended print sizes for your suffocation warning labels when packaging with poly bags. Use a 24 pt print size for bags of 60 inches or more, 18pt for 40 – 59 inches sized bags, 14pt for 30 – 39 inches sized bags, and 10pt for bags that are less than 29 inches.
  • Use transparent poly bags that are at least 1.5 millimeters thick
  • Seal your poly bags completely in a way that secures the product properly.
  • The poly bag dimension must not be bigger than that of the product by more than 3 inches.
  • Use black, opaque poly bags or shrink wraps for adult products.

For Products That Are ‘Sold as Sets’

“Sold as Sets” products are considered as a unit even though a set contains multiple products. If you sell products like this, keep these in mind:

  • Pack the products as a unit, but mark them as a set on the packaging.
  • Affix a label that makes it easy to tell that the products are a set. There are different variations of this — “Sold as set,” “Ready to ship,” or “This is a set. Do not separate.”
  • Do not make the barcodes on the individual units visible. The set should have its own FNSKU barcode that shows that it is a set, this way, Amazon treats all the packages as one.

For Boxed Units

  • If you decide to package your products with boxes, the box must have six sides that cannot flip open on their own.
  • The box must not collapse when pressure is applied on any side. Ideally, any box you decide to use must pass a three-foot drop test to ensure it is strong enough and will not break under pressure.

For Bubble Wraps

Bubble wraps are not completely suitable for fragile products, but if you do have to use them for fragile products then you’ll have to go the extra mile to use a sturdy box. 

Keep the following in mind if you have to use bubble wrap.

  • Wrap the product tightly and tape securely to ensure the product does not fall out.
  • Label the product with a barcode that can be scanned.
  • Ensure the bubble wraps can pass a 3-foot drop test on a hard surface without the contents breaking. 

For Pallets

If you want to sell pallets, here are some things to keep in mind for shipping and labeling an Amazon FBA pallet. 

  • Use the right pallet label and attach the label to an easily accessible place.
  • Pallet labels should be attached to all four sides of the pallet, on the outside of the stretch wrap. 
  • Avoid using the wrong pallet labels else they won’t match the shipment and can cause confusion. 
  • Never use A4 paper to print your pallet labels.
  • Don’t attach the pallet labels to the inside of the stretch wrap. 

General Packaging and Amazon FBA Label Requirements

Here are some general Amazon FBA label requirements to follow when labeling your products for shipping regardless of the packaging material you decide to use.

  • When shipping multiple case packs together, remember to attach the unique FBA Box ID shipping label on the primary box’s exterior.
  • For reused boxes, remove any old shipping labels, barcodes, or markings to avoid confusion.
  • To prevent scanning errors during receiving, use opaque tape or a black felt-tip marker to render existing barcodes unscannable.
  • Wrap each item individually to provide adequate protection during transit.
  • Use appropriate packaging material to ensure the safety of the contents inside the box.
  • Utilize strong tape designed specifically for shipping purposes.
  • Add at least 2 inches of cushioning between each item and the inside of the box to prevent damage during handling.
  • After packing, gently shake the box to check for any movement of the contents.
  • Opt for boxes with dimensions of at least 6 x 4 x 1 inches and weighing at least 1 lb to minimize receiving delays.
  • Ensure your boxes comply with the maximum size and weight requirements: No more than 25.00 inches on any side and no more than 50.00 lb in total, unless the box contains an exception.

Conclusion

Getting familiar with Amazon FBA label requirements is important because going against Amazon labeling requirements can lead to unexpected expenses like having to pay Amazon a packaging and prepping fee to repackage wrongly packaged items for you.

Wrong shipping labels can also lead to shipping delays. An easy way to avoid unnecessary hassles is to work with reliable freight forwarders.

]]>
https://www.zonbase.com/blog/amazon-fba-label-requirements/feed/ 0 Best Way To Start Amazon FBA From Scratch! (EXACTLY What I’m Doing) - Kevin David nonadult
Comprehensive Guide to Improving Amazon Conversion Rates in 2024 https://www.zonbase.com/blog/amazon-conversion-rates/ https://www.zonbase.com/blog/amazon-conversion-rates/#respond Wed, 12 Jul 2023 14:38:11 +0000 https://www.zonbase.com/blog/?p=24398 In a competitive marketplace like Amazon, it is easy to focus on how much sales you make and end up neglecting the other factors that lead to sales. For instance, your Amazon conversion rates.

Your listings are like display shelves in a store, and while you may be focused on how much sales you make, Amazon is concerned about the percentage of people who come to your listings and go through with a purchase. So, if you want a significant boost in sales, you should prioritize increasing your conversion rates. 

You have no direct control over how many people view your listings and decide to make a purchase. But if you read to the end, we’ll tell you how to boost your Amazon conversion rates, and by extension, your sales.

We’ll answer all your questions — What is a good conversion rate on Amazon? How do you find, calculate and track your Amazon conversion rate? But first, why is your conversion rate so important?

What is Amazon Conversion Rate and Why Is It So Important?

Your conversion rate depends on what you’re tracking. If you sell a service, you may track conversions in terms of email subscriptions, downloads, or page visits.

However, if you sell on Amazon, your conversion rate is a metric that measures the number of page visits or listing views that lead to sales. 

So if you get 100 listing visits and only two purchases, this would result in a 2% conversion rate and if you get only 1 visit and it leads to a purchase, you have a 100% conversion rate. Did you make more sales? No. 

The second scenario had a “higher” conversion rate but only 1 sale, while the first scenario had a higher number of visits and should have led to a significant number of sales. This is what Amazon is concerned about. But why is this metric so important? 

  • It gives you a clear view of your seller health or metrics and can provide a much-needed boost to your product rankings.
  • It helps you to track the results of your A/B tests.
  • It helps you figure out listing loopholes and improve your strategies.
  • Can help increase your ROI
  • It can help you reduce your ad spend and maximize your ROAS.

Now that you know how important your conversion rate is, how do you find and calculate your Amazon conversion rates? 

How to Find and Calculate Conversion Rates on Amazon

Your current conversion rate will determine what strategies you need to adopt. We’ll tell you what a good Amazon conversion rate is, but first here’s how to calculate or find your conversion rate.

Your conversion rate = (The total no. of orders) ፥ (The total no. of product listing sessions)

Instead of trying to calculate your conversion rate, you can simply find it in Seller Central by following the steps outlined below.

  • Log in to your Seller Central account.
  • Go to the “Reports” tab and click on “Business reports”.
  • On the left side of the business reports, you will see the reports menu. Select “Detail Page Sales and Traffic By Child Item.” 

This report shows crucial data for every sale you make — total sessions, page views, units ordered, product sales, and, conversion rate. In this report, the unit sessions percentage represents your conversion rate.

If you want to boost your sales, you must keep an eye on these metrics and strive to increase them. One way to boost sales is to review your listing elements and track these metrics, then stick to what works. You can set a specific date range in the Business reports tab and view data within that time frame.

What is a Good Conversion Rate on Amazon?

A good conversion rate will depend on the platform. Ecommerce stores typically have a conversion rate of about 1-3%, but since Amazon gets the largest share of eCommerce traffic, you can have a higher conversion rate there. 

Amazon has built a solid reputation, and sellers who know how to leverage this reputation can have conversion rates of up to 10-15%. This conversion rate is often higher for Prime-Eligible sellers, because Prime subscribers have higher chances of purchase; they typically convert at about 74%.

If your conversion rate is less than 10%, you have enough room for improvement. However, your current conversion rate is a result of certain factors, so in order to boost conversions, you should be aware of the factor that influence your Amazon conversion rates.

Factors that Influence Amazon Conversion Rates

Keywords

Your keywords determine how many people find your listings, so if you have irrelevant keywords in your listings, you are very likely to attract the wrong audience. 

Gambling wth keyword research is one surefire way to lose conversions. Here’s how it works — you sell spray bottles, but you observed that “applicator bottles” have a higher search volume. You decided to use the “applicator bottles” keyword even though it doesn’t match your product. You’ll attract shoppers who are looking for applicator bottles and this will lead to a high number of detail page visits. However, these people are unlikely to make a purchase because they are not searching for spray bottles.

So if you got 100 detail page visits and only two shoppers decided to buy spray bottles, you may end up with 2 sales and a 2% conversion rate. 

Don’t use random keywords in your listings, instead, target keywords that your potential customer is likely to use when searching for your exact product. The more streamlined your keywords are, the higher your chances of attracting your target audience and increasing your conversions. 

Search Relevance 

The A9 algorithm chooses the top ranking listings based on search relevance. What this means is that the algorith favors listings that are relevant to customers search terms and search intent.

And if you show want to boost your conversions, you should focus on getting more eyes on your listings. Create unique, well-optimized listings that are tailored to match your buyer’s intent. 

7 Strategies for Improving Your Conversion Rates on Amazon 

Now that you know the factors that influence your conversions, let’s take a look at some strategies that could help you push it up to the 10-15% mark.

Use Amazon FBA

The conversion rate for Prime subscribers is about 74%. This is largely because of the perks subscribers get — free shipping and fast delivery. So if you sell to them, you have a higher chance of improving your conversions significantly. One way to become a Prime-eligible seller is to use Amazon FBA. 

You get to outsource your storage and fulfillment to Amazon while also getting the opportunity to sell to about 200 million Prime subscribers. You also get access to advertising tools like Sponsored Brand and Sponsored Product ad campaigns, which could shoot your conversion figures up significantly.

Optimize Your Listings Consistently

Optimizing your listings is one of the most straightforward ways to get more eyes on your listings and increase your conversion rates. 

Put yourself in the customer’s shoes — what kind of listings are likely to make you go through with a purchase? Craft your listings with this in mind. To optimize your listings, carry out relevant keywords, use bullet points, create clear and concise descriptions, and use attractive product titles.

Use relevant keywords in your descriptions, but be sure to infuse the keywords in the most natural way and avoid keyword stuffing. Make your descriptions clear and concise, provide crucial details about your products — the features and benefits and avoid adding unnecessary paragraphs. Also use bullet points to make your descriptions readable and easy to understand.

To increase your chances of conversions, use high-quality images. Show your product from different angles, the aim is to help customers visualize using your product. Remember, your images are the only interaction shoppers have with your products, so don’t miss your chance to sway their decisions in your favor. 

Need help with creating and optimizing your listings? Use Amazon software for listing creation and listing optimization. With ZonBase AI Listify tool, you can create unique, detailed, well-optimized listings from scratch without having to do any keyword research or content creation. 

All you have to do is enter a seed keyword and the tool will check through the top 10 competitors in your niche, and create a listing using the top 10 best-converting keywords from their listings. 

Sign up for a 7-day free trial of ZonBase to explore the AI Listify tool.

Product images are an essential part of listing optimization, but what if you don’t have any photography or photo editing skills? Hire a professional team. 

ZonBase offers a personalized service that allows you to outsource your photoediting to a team of experts. These experts will edit your product images in a way that increase your chances of conversions and sales. 

Sign up for the ZonBase Photo Enhancer service.

Maintain Competitive Prices

Your prices are another way to sway shopper’s purchasing decisions. Pricing plays a significant role in attracting customers and driving conversions on Amazon. Employing competitive pricing strategies can entice customers to choose your products over competitors’. 

Careful analysis of market trends, competitor prices, and customer expectations is essential in determining the optimal price point for your products. Offering competitive prices that align with customer perceptions of value can significantly improve your conversion rates.

Avoid veering off to any extreme when fixing product prices — if your products come off as too cheap, shoppers may get the impression that your products are inferior. Expensive products also scare off shoppers especially if competitors offer lower prices. 

Focus on Getting More Reviews

In business, nothing pulls a crowd faster than a crowd. So if you want to pull people to your listings, focus on getting people to leave you reviews. This way, people who see it will be more inclined to buy from you. 

Positive product reviews and ratings can significantly impact conversion rates on Amazon. Shoppers often rely on the experiences and opinions of others when making purchasing decisions. A higher number of positive reviews and higher average ratings build trust and credibility, instilling confidence in potential buyers and influencing their purchase decisions.

Use Product Bundling

product bundle

Product bundling is a sales strategy that involves pairing complementary products together and then selling them at a slightly discounted price, as a way of increasing sales and conversions. 

For instance, if you sell chairs, you can create a bundle that includes tables. This way, shoppers who need chairs and also need tables will be likely to purchase especially if they feel that they are getting both at a discounted price.

Related: How to create Amazon product bundles

Use the ‘Frequently Bought Together’ Option

The “frequently bought together” section on Amazon allows you to link your product listings together, showing customers the total price upfront. By simplifying the process for customers to “Add Products to Cart” with just one click, it not only improves convenience but also increases the likelihood of additional product purchases.

By taking advantage of the “frequently bought together” option, you can create a seamless shopping experience for customers, encouraging them to make additional purchases and ultimately increasing your conversion rate on Amazon. 

The combination of visually appealing images, optimized product titles, and upfront pricing information enhances customer transparency and simplifies the buying process, resulting in higher customer satisfaction and improved sales for your business.

Run More Promotions

By running more promotions you can increase your reach, gain more visibility, and boost your conversions in the long run. Amazon provides a wide range of advertising tools to help you launch promotional ads and PPC campaigns. You can run Sponsored Brand ads or Sponsored Product ads and increase your chances of showing up on page one of search results. 

ZonBase offers a PPC optimization tool — ZonPPC to help you launch and manage your PPC campaigns from one dashboard. Using this tool, you can create PPC campaigns and optimize them, you can change bids and adjust budgets in a few clicks.

Sign up for a 7-day free trial of ZonBase to try out ZonPPC.

Conclusion

Now that you know the importance of conversion rates, the factors that influence Amazon conversions, and the strategies that can help you improve your Amazon conversion rates, you can go ahead to make more sales.

Success on your journey.

]]>
https://www.zonbase.com/blog/amazon-conversion-rates/feed/ 0
Restricted Amazon Categories and How to Get Amazon Category Approval in 2024 https://www.zonbase.com/blog/how-to-get-amazon-category-approval/ Mon, 03 Jul 2023 13:40:49 +0000 https://www.zonbase.com/blog/?p=24388 When most people decide to sell on Amazon, they start out enthusiastic, knowing they can sell just about any profitable item and make money. This enthusiasm soon fizzles when they discover that certain products and categories are ‘out of bounds’. 

These ‘out of bounds’ product categories are called Restricted product categories. To sell in these categories, you’ll need to get approval.

So if you’ve found a great product that turned out to be a restricted product, read to the end and we’ll show you how to get Amazon category approval to sell it. 

What are Restricted Product Categories on Amazon?

Restricted product categories or gated categories are product niches that require sellers to obtain approval from Amazon in order to list and sell them. This approval process involves various requirements, performance checks, and potentially additional fees. 

Amazon has built a solid reputation for selling high-quality products. However, some categories are susceptible to counterfeit products. If a customer orders from any of these categories and does not get exactly what they want, Amazon’s reputation will be on the line. 

Product category restrictions are Amazon’s way of securing these categories and protecting shoppers from fraudulent sellers and counterfeit products. 

Contrary to popular opinion, Amazon also places restrictions on specific products, brands, and even subcategories. We’ll provide a list of products you can sell without seeking Amazon category approval. But first, here’s a comprehensive list of restricted categories, products, and subcategories. 

Restricted product categories on Amazon.com (United States)

Amazon restricted categories

You’ll need to get Amazon category approval before you can sell products in any of the categories listed below. Amazon’s restricted categories and products vary based on national laws but in this guide, we will be focusing on the U.S. marketplace. However, the Amazon category approval process is the same across different marketplaces. Here’s a list of the restricted product categories, products, and brands in the U.S. marketplace.

  • Video, DVD, & Blu-ray
  • Collectible Coins
  • Streaming Media Players
  • Personal Safety and Household products
  • Grocery & Gourmet Foods
  • Music Category
  • Lighting Category
  • Beauty Topical
  • Sports & Nutrition
  • Watches
  • Gardening & Watering
  • Automotive
  • OTC Medication
  • Haircare & Beauty Appliances
  • Baby Topicals
  • Toys
  • Pet supplies
  • Medical supplies & Equipment
  • Pet Care
  • Pet Food
  • Candles & Aroma Therapy
  • Power Tools
  • Home Environment Electronics
  • Wireless Accessories
  • Baby Feeding
  • Feminine Hygiene
  • Baby Activity Gear
  • Baby Strollers and Carriers
  • Audio Visual
  • Personal Safety & Household 

Amazon also places “product condition” restrictions on some product categories. In this case, sellers can only list brand-new products for sale in these product categories. Here are some categories with product condition restrictions.

Check out the post below for detailed guidelines on how to gain approval to sell in specific categories.

Related: Proven Guide to Selling in Restricted Categories

  • Baby Products
  • Beauty, Clothing, Accessories & Luggage
  • Grocery & Gourmet Food
  • Health & Personal Care
  • Jewelry Shoes, Handbags & Sunglasses
  • Watches

Restricted Products on Amazon.com (United States)

Here’s the list of restricted products in the U.S. marketplace.

  • Alcohol
  • Animals & Animal-Related Products
  • Art – Fine Art
  • Art – Home Decor
  • Automotive and Powersports
  • Composite Wood Products
  • Cosmetics & Skin/Hair Care
  • COVID-19 Supplies
  • Currency, Coins, Cash Equivalents, and Gift Cards
  • Dietary Supplements
  • Drugs & drug paraphernalia
  • Electronics
  • Explosives, Weapons, and Related Items
  • Export Controls
  • Food & Beverage
  • Gambling & Lottery
  • Hazardous and Dangerous Items
  • Human Parts & Burial Artifacts
  • Jewelry & Precious Gems
  • Laser products
  • Lighting
  • Lock Picking & Theft Devices
  • Medical devices and accessories
  • Offensive and Controversial Materials
  • Pesticides and Pesticide Devices
  • Plant and Seed Products
  • Postage Meters & Stamps
  • Recalled Products
  • Recycling electronics
  • Subscriptions and Periodicals
  • Surveillance Equipment
  • Tobacco & Tobacco-Related Products
  • Warranties, Service Plans, Contracts, and Guarantees
  • Other Restricted Products
  • Refrigerants: Ozone-Depleting Substances and Substitutes
  • Upholstered Furniture, Bedding, & Other Quilted Products
  • CPAP Cleaning and Disinfecting Devices

Some restricted products are currently not on Amazon’s list, so this is not an exhaustive list. 

However if a product or product category requires any of the following, then it qualifies as a gated category or product.

  • If you have to provide additional information before selling in any category.
  • Products that carry the “FDA-cleared” or “FDA-approved” tag in their listings.
  • If the product or category has specific regulations depending on the Amazon marketplace you want to sell in.

Restricted Amazon Brands

Sellers who want to sell premium brand products on Amazon will require approval too. This is because top brands, especially in the fashion category are susceptible to counterfeiting. 

Some restricted brands on Amazon include Adidas, Nike, Gucci, Cusiniart, Hasbro, etc.

Requirements for Amazon Category Approval

Since Amazon has clear reasons for placing restrictions on some categories, sellers who want to list products in ungated categories will have to meet certain requirements. A few of the eligibility requirements are outlined below. 

  1. Professional Seller Account: To obtain Amazon category approval, you need to have a professional seller account. This account type is essential for selling in restricted categories and demonstrates your commitment to running a serious business on the platform.
  2. Good Performance Metrics: Amazon considers your seller performance metrics, such as order defect rate, late shipment rate, and pre-fulfillment cancellation rate, when reviewing category approval requests. Maintaining excellent performance is crucial for gaining approval in restricted categories.
  3. Proof of Product Authenticity: Amazon places a high emphasis on product quality and authenticity. You must ensure that the products you intend to sell meet the required standards and are genuine. This involves sourcing products from reliable suppliers and providing documentation to prove the authenticity of your inventory.
  4. Seller Experience: Amazon may consider your experience as a seller when reviewing category approval requests. If you are new to selling on Amazon or have a limited sales history, it may be more challenging to obtain approval in certain categories. Building a positive track record through successful sales and good customer feedback can increase your chances of approval.
  5. Documentation and Information: When applying for category approval, you will need to provide relevant documentation and information. This may include invoices, product images, UPC/EAN codes, safety data sheets, certificates of authenticity, or any other documentation specific to the category requirements.

Some other requirements include:

  • Maintain an order defect rate of below 1%.
  • Maintain a great sales history for at least three months.
  • Provide a return address within the country where you intend to sell, or ensure free delivery.
  • Offer customer support in the local language of the Amazon marketplace you sell in. 

It’s important to note that each category may have its own specific requirements and considerations for approval. Familiarizing yourself with the guidelines and policies for each category you wish to sell in is crucial for a successful approval process.

How to Get Approval to Sell on Amazon

Yes, there are other categories you can sell in without approval. But there are numerous benefits of selling in gated categories, and if you’re willing to go through the approval process, it will pay off in the long run. 

The Amazon category approval process is quite straightforward, but it may take a while for Amazon to grant you permission to sell in your desired category. The approval timeline is usually shorter for sellers who have been on Amazon for a while and have a great seller reputation. 

Follow the steps outlined below to submit an Amazon seller approval request.

  • Create or log in to your seller account (professional seller account)
  • Click on the inventory menu then select ‘Add Products’
  • Choose the products or categories you want to sell in. Then click on the “listing limitations apply” button.

You’ll either be able to apply for approval by clicking the “Request Approval” button or you’ll get a notification that says applications are not being reviewed at the moment.

The application process is typically easy to get through but if you encounter any hiccups along the line, you can consider outsourcing the application process by using an Amazon category approval service. 

Amazon category approval services, also known as ungating services, are not directly affiliated with Amazon, so they cannot exactly influence Amazon’s decision. They can handle the application process on your behalf, but they cannot guarantee anything. 

Tips for Getting Amazon Seller Approval to Sell in Restricted Categories

No one can exactly tell what criteria Amazon uses to determine who gets approved and who doesn’t. However, there are a few things you can do to increase your chances of getting a favorable response to your approval request. 

  • Build a strong seller reputation: Amazon may be more likely to approve sellers with a solid track record. Focus on building a positive selling history in less restricted categories before attempting to sell in more restricted ones. 
  • Choose products from well-known brands: Applying with products from reputable brands can significantly increase your approval. Amazon is not likely to approve your request if you intend to sell products from an unpopular brand. So, when seeking approval to sell in a gated category, including well-known brand items in your application, even if you don’t plan to sell them, will substantially improve your prospects of obtaining Amazon’s approval.
  • Confirm the category requirements: Thoroughly research the specific category you want to sell in and understand the requirements set by Amazon. Each category has its own set of guidelines and criteria, so make sure you meet them before applying.
  • Carry out market and product research: The approval process is not something anyone just goes through, so before you decide to seek approval to sell in a gated category, be sure that the niche and the product you intend to sell are profitable. On the flip side, verify before listing any product for sale. You run the risk of losing your seller account if you put up a product that belongs to a restricted category.

Are There Categories You Can Sell in Without Approval?

categories not needing approval

Although there is a long list of restricted categories, there’s an even longer list of categories you can sell in without needing approval. Here are a few of the most profitable ones to sell in.

  • Electronics
  • Toys & Games
  • Camera & Photo
  • Video Games
  • Pet Supplies
  • Home & Kitchen
  • Books: consistently some of the best-selling items, especially ebooks sold via the Kindle store
  • Clothing, Shoes & Jewelry
  • Handmade

Related: How to find the best-selling products on Amazon

Do I Need Supplier Invoices to Gain Amazon Category Approval?

Applying through the supplier route is another option. But if you decide to go through this route, you’ll have to buy and sell products that are ALREADY listed on Amazon!

And that’s not all, the products have to be listed in the category you’re interested in. You can find the products via Seller Central and then use the ‘Add A Product’ button to find out what category they are in.

If you intend to apply for approval through the supplier invoice route, try not to prioritize your profit margin, just order the required quantity and get the supplier invoice.

During the application process for the chosen category, it is essential to provide the original invoice that accompanies the product inside the box, rather than a printed copy of the emailed version. 

You can use your phone to capture a clear picture of the invoice and submit it to Amazon as part of your application. In certain situations, you may be able to obtain a PDF copy of the invoice in advance from your sales representative, which can expedite the approval process significantly. 

FAQs

  • What should I do if my approval request gets rejected?

You can apply again after double-checking to be sure you meet all the requirements for approval.

  • If Amazon grants my approval request, can I only sell products sourced from the supplier I provided invoices for?

No, your supplier invoices will be inconsequential after the first check. Just ensure you source products from authentic suppliers.

  • Can I get approval to sell in a restricted category even as a new seller?

Your chances of approval are quite slim as a new seller because Amazon takes seller reputation seriously, and as a new seller, you won’t have any existing seller reputation. But there’s no harm in trying.

Final Words

Selling in restricted categories is always worth it. Since these categories are not open to all, the competition is often minimal, thus increasing your chances of success. 

And if you source your products from reliable suppliers at favorable prices, you can make a killing in some restricted categories. The journey to getting Amazon category approval can be long sometimes, but if you see it through and actually get approved, the benefits are enormous. 

So if you stumbled on a golden product option that happens to belong in a gated category, don’t be so quick to toss it into the “don’t-sell-can’t-work” list. Keep an open mind, follow the steps outlined earlier, and you just may be able to list the product for sale. 

If you haven’t yet developed an interest in a restricted product, focus on building your seller reputation and maintaining great performance metrics as these may come in handy in the future.

Success on your journey.

]]>
Don’t SELL This! #shorts nonadult
Comprehensive Amazon Seller Shipping Guide for 2024 https://www.zonbase.com/blog/amazon-seller-shipping-options/ https://www.zonbase.com/blog/amazon-seller-shipping-options/#respond Thu, 15 Jun 2023 13:53:21 +0000 https://www.zonbase.com/blog/?p=24342 With 61% of American shoppers beginning their product searches on Amazon, it is safe to say that Amazon is fast becoming the number one shopping destination. And it’s not only because of the exciting deals and vast assortment of great quality products, it’s also because of the swift shipping service that the platform offers. (Source: Adlucent).

As a matter of fact, 67% of Amazon shoppers say they pay for Prime membership because of its most exciting perk — fast and free shipping; typically about two days. (Source: Adlucent).

Since fast shipping is what draws most shoppers to the platform, aspiring and existing sellers will have to use shipping structures that ensure prompt order delivery. This is where Amazon seller shipping services come in. 

In this post, we will tell you about different Amazon seller shipping options and provide some best practices to help you optimize the shipping process and maximize customer satisfaction.

Top 4 Amazon Seller Shipping Options

Fulfillment by Amazon (FBA)

FBA Warehouse

Fulfillment by Amazon is the most popular Amazon seller shipping option. Most sellers opt for this shipping option because they get to ship through Amazon and outsource crucial aspects of their order fulfillment process to Amazon. 

Here’s how it works — Sellers ship their inventory to an Amazon warehouse, and Amazon stores the products, handles fulfillment and shipping, and also provides customer service. 

Sellers who opt for FBA can take advantage of Amazon’s massive logistics infrastructure. But that’s not the most exciting perk of the service, the best part is that products that are fulfilled by Amazon often come with a ‘Fulfilled by Amazon’ tag. Thus, shoppers are more likely to purchase because of Amazon’s reputation. 

Also, Amazon notifies sellers when they’re running low on stock. However, the FBA seller shipping option is not free. Check out the post below to see a thorough breakdown of the current Amazon FBA fees.

Related: How much does Amazon FBA cost?

Benefits of Amazon FBA 

  • FBA sellers are Prime-eligible, so they can sell to Prime subscribers which means more visibility and also makes products eligible for fast and free shipping for Prime subscribers. 
  • Amazon handles storage and order fulfillment including picking, packing, and shipping. This frees up sellers to pay attention to other areas of their businesses like product sourcing and marketing.
  • Due to Amazon’s reputation for fast and free shipping, shoppers are likely to purchase products that have the ‘Fulfilled by Amazon’ tag.

Disadvantages of FBM

  • The service can be quite expensive, which may have an impact on profitability.
  • FBA sellers may have to give up some control of their brand. This is because products shipped through Amazon carry Amazon’s brand logo and packaging.
  • Products may get mixed up with those of other sellers due to commingling.

Fulfilled By Merchant (FBM)

Warehouse image

The Fulfilled by Merchant option is another popular seller shipping option. Unlike the FBA option, FBM sellers will be fully responsible for every aspect of the fulfillment process, including storage, packaging, and shipping. In other words, sellers have to store their inventory and negotiate with logistic firms for prompt order delivery.  

FBM is a great option for sellers who want an opportunity to develop a distinctive brand experience and include tailored messages or marketing materials.

However, to handle the shipping process effectively, sellers must either have their shipping infrastructure or partner with third-party logistics providers (3PLs). Also, with FBM, sellers are in charge of customer support and responding to customer service questions, such as updates on orders, and any inquiries that buyers may have.

Benefits of FBM

  • FBM allows sellers total control over the delivery process. Sellers have a choice of preferred shipping companies and packaging options.
  • FBM may be more cost-effective. Certain FBA fees, like those for order handling and storage that may have an impact on profitability can be avoided.
  •  With FBM, sellers have total control over their stock. They may closely watch stock levels and update inventory when demand changes.

Disadvantages of FBM

  • Sellers have to handle all stages of shipping, including order fulfillment, storage, and packaging. 
  • Amazon Prime’s fast and free shipping perks are not available for FBM orders.
  • Managing delivery logistics may be challenging for sellers who have large orders.

Seller Fulfilled Price (SFP)

Seller Fulfilled Prime (SFP) is an Amazon seller shipping option that enables sellers to complete Prime orders from their own warehouses or fulfillment centers. It enables retailers to take advantage of the Prime logo and provide customers with Prime shipping perks while keeping control over their fulfillment process. 

Benefits of SFP

  • SFP enables merchants to provide products that are eligible for Prime, which can greatly increase their visibility and draw in more customers. 
  • With SFP, sellers have more power over the fulfillment process. They can handle their own inventory, packaging, and shipping operations.
  • It does away with FBA fees, including those for order handling and storage, and gives sellers sole control over shipping charges. 

Disadvantages of SFP

  • Specific performance standards, such as order cancellation rates and on-time delivery, are demanded of SFP merchants. If these parameters are not reached, the seller’s account may be suspended or they may lose their eligibility for Prime. 
  • Prime subscribers have high standards for prompt deliveries and first-rate support. If an SFP seller doesn’t live up to these standards, it may result in bad reviews, unsatisfied customers, and a drop in sales.

FBA Onsite

Inventory and shipping

FBA Onsite is a section of the FBA program that enables sellers to keep their stock at their own warehouses instead of sending it to Amazon’s facilities, but still offers the ease of using Amazon’s network and services for fulfillment,

Because you can handle storage and organize your inventory yourself, you get more control over your inventory. 

Benefits of FBA Onsite

  • FBA Onsite enables sellers to maintain total control. They have more flexibility in their inventory management and organization because they can store and manage their products in their facilities or third-party warehouses.
  • This shipping option can be less expensive than standard FBA because sellers can avoid some FBA expenses related to long-term storage, removal, and storage for storage purposes. 
  • Sellers remain in control of their branding. 
  • FBA Onsite sellers can still enjoy the benefit of Amazon’s extensive fulfillment network and Prime eligibility as well as fast shipping.

Disadvantages of FBA Onsite

  • Sellers must have the necessary infrastructure, including warehouse space, tools, and staff, to implement FBA Onsite, including handling inventory storage, order processing, and delivery.
  • FBA Onsite makes fulfillment operations more difficult because sellers must oversee their inventory and make sure that delivery procedures are effective. 
  • In contrast to FBA, where Amazon handles returns and customer support, FBA Onsite vendors are more responsible for doing these tasks themselves which can be tasking. 

FBA vs Other Shipping Options

Although FBA offers a vast number of benefits, it also comes with significant drawbacks. So, when choosing between FBA and alternative shipping methods, it’s crucial for sellers to thoroughly assess their unique business conditions, product features, cost factors, and fulfillment capabilities. 

The circumstances of each seller may be different, and success depends on striking the correct balance between cost, control, branding, and customer experience.

  • Products are delivered by sellers to Amazon fulfillment centers, where they are safely kept in Amazon’s warehouses while other shipping options like FBM require sellers to store products themselves. 
  • Any customer questions or order-related problems are handled by Amazon’s customer support team because Amazon also offers sellers customer service support to sellers who opt for the FBA program, this is not usually so for other shipping options where sellers have to take care of customer support themselves. 
  • Other shipping methods may be more appropriate for some products depending on their handling or storage needs. For instance, fragile products could need unique packaging and shipping procedures that can be better managed outside of FBA because sellers will have more control of the shipping process.
  • Although FBA sellers enjoy Prime eligibility, Amazon also offers Seller Fulfilled Prime (SFP). This Amazon seller shipping option enables sellers to complete Prime orders independently, giving them the advantages of Prime membership while keeping control over all aspects of fulfillment, including packing, shipping, and customer service support.
  • FBA sellers may encounter capacity issues or higher prices at busy times or periods of high demand. In contrast, other shipping methods can offer greater adaptability and scalability to manage these unprecedented changes in orders.

Related: How to manage inventory on Amazon.

Things to Consider Before Choosing a Seller Shipping Option

Fulfillment Costs

Cost is an important factor to consider before settling for any of the Amazon seller shipping options outlined above. Research and analyze the costs involved in each shipping option. For a start, you can compare and contrast the costs of using Seller Fulfilled Price to handle your shipping with the fees incurred for FBA (Fulfillment by Amazon).

Determine how seller fees and business expenses will affect your profit margins and pricing plans, then decide if you can afford to bear the cost of storage and fulfillment. This is an important step you do not want to skip if you are looking to maximize profit. 

Shipping Time and Speed

Fast shipping is an important criterion, after all, you’re reading this because you want to find ways to ship customer orders promptly. This is why when choosing a shipping option you must consider shipping time and speed. Evaluate the expectations of your target customers and the delivery timeline needed for orders. 

Same-day, one-day, and two-day shipping are just a few of the delivery options.

Customer Experience

Carefully consider the effect that the delivery choice will have on the whole customer experience. Some shipping options like FBA offer customer service support, so if you opt for this program you won’t have to worry about customer service.

When choosing a shipping method, look for one that offers accurate tracking information, prompt deliveries, and simple returns. Customer satisfaction is important and your seller rating may increase as a result of good customer experience so ensure you go for an option that can help you improve customer experience and customer satisfaction. 

Location and Coverage

Consider if the logistic firm you intend to use has the capacity for international shipping if you have an international market base or are looking to expand into other marketplaces. 

Neglecting this may lead to increased shipping costs and packaging thus reducing profit margin.

Reliability and Tracking

A good way to determine the reliability of a particular shipping option is by researching customer reviews and feedback. This is a great way to learn from other sellers’ experiences and what it would be like working with them. 

Evaluate the shipping option’s dependability. Choose a shipping option with a solid track record of on-time deliveries and reliable tracking data. This lowers the possibility of lost, damaged, or delayed goods and increases customer experience and satisfaction thus boosting sales.

How to Ship Amazon Orders as a Seller

Shipping through Amazon is not a complicated process, it often involves the following steps:

  • Log into your central seller account and select “manage inventory”.
    • Look for your listing in the “manage inventory” option.
    • Click on the edit button at the bottom right-hand corner.
    • Select “send/replenish inventory” in the drop-down menu.
  • You will need to enter the “ship from address’ which is where the inventory is currently located.
  • The next step is to select either “individual case products” or “case-packed products”.
    • Individual products imply that your shipment consists of numerous products with different conditions or SKUs while case-packed products imply that the shipment consists of just an SKU.
    • You can now proceed to enter the number of cases and units per case for each SKU in the shipment.
  • The next step is to enter how many units of products are in a case and how many cases you intend to send out.
  • Next, Indicate if the products need to be prepared or require any form of special packaging before they are shipped such as packaging in bubble wrap.
  • Proceed to select whether or not your products require any form of a label. Indicate if you want Amazon to apply for the barcode for you or if you will be applying for it yourself.
  • This step requires you to indicate if you want all your products to be sent to one warehouse or if Amazon should distribute them to different fulfillment centers. This can be achieved by going to the setting, Going to “fulfillment by Amazon” and selecting the “inbound setting”.
    • If you want your products to be distributed to different warehouses, you should leave the shipment setting in default: “Distributed Inventory Placement”. If you want to change the setting so all your products are sent to one warehouse, you can move it to “Inventory Placement Service”.
  • The last step requires entering the shipping service, how you want products to be packed, package dimensions, and weight. Amazon will generate the price for your shipment and you are ready to ship your products.

Best Practices for Efficient and Cost-Effective Shipping

Swift shipping typically gives you an edge in Amazon’s ultra-competitive space. But before you start selling or shipping, you should be aware of some best practices that can help you ensure prompt shipping as an Amazon seller. A few of them are listed below: 

Adhere to Amazon’s Policies

Amazon is usually very strict with its policies. It’s important to ensure that you adhere to all Amazon storage policies in terms of size and labeling. 

Choose the Appropriate Product Packaging

Make sure your goods are properly packaged so they can be transported without damage. To protect your items from damage, wrap them in appropriate packaging materials like bubble wrap or air pillows. The use of properly sized packaging helps to reduce extra materials and weight while minimizing dimensional weight costs.

Respond to Customers’ Inquiries Promptly

Customers may have questions about their orders and product tracking, ensure you provide prompt and accurate responses to customer questions. This will help optimize customer experience and earn you positive reviews.

Utilize Amazon Seller Shipping Services

Use Amazon’s shipping services, such as Seller Fulfilled Prime (SFP) and Fulfillment by Amazon (FBA). These programs provide advantages like lower shipping costs, access to Amazon’s enormous client base, and streamlined operations.

Review and Optimize the Shipping Process

Always review and improve your delivery procedures. Analyze customer feedback frequently, keep an eye on shipping performance data, and look for chances to improve shipping experiences overall and maximize efficiency.

Use Shipping Software

Employ shipping software that is compatible with Amazon’s platform. You can save time and money by using these solutions, which also offer discounted shipping rates, label printing, tracking, and order management capabilities.

Why You Should Provide Swift Shipping and Order Tracking

It improves customer trust and loyalty 

Prompt order delivery plays a crucial role in helping you gain and maintain customer trust. Sellers exhibit dependability and professionalism when they routinely fulfill orders on schedule. Also, having a reputation for prompt delivery makes a seller stand out from rivals and fosters client trust.

Boost customer satisfaction 

Tracking and prompt delivery are crucial for a great client experience, customers want to be able to monitor the status of their orders, and order tracking. 

Customers are more satisfied and develop trust in the seller when they can readily track their products and receive them in the anticipated time range. Repeat business, favorable evaluations, and referrals to others may result from this.

Reduces delivery issues 

Sellers can proactively detect and handle any delivery issues thanks to tracking. Sellers can also mitigate delays, deal with wrong addresses, or address any other logistical issues by keeping an eye on the status of shipments.

This reduces the possibility of delivery issues, lowers the chances of lost items, and guarantees that consumers receive their products on time.

Competitive Advantage

Prompt delivery can help sellers stand out from the competition. More customers may be drawn in by quick delivery times, especially those who value speedy shipment. Sellers can position themselves as dependable and trustworthy solutions for clients by routinely fulfilling orders on schedule.

Conclusion

Sellers can access a wide range of Amazon seller shipping options, each with its advantages and limitations. However, many sellers prefer Fulfillment by Amazon (FBA) because of its benefits, including Prime eligibility, streamlined fulfillment services, scalability, and customer trust. 

FBA enables sellers to utilize Amazon’s enormous fulfillment network and customer service while concentrating on other areas of their business. However, in some circumstances, it may be preferable to use different shipping options like Seller Fulfilled Prime (SFP) and Fulfilled By Merchant (FBM). 

Sellers that use SFP can continue to be eligible for Prime benefits while running their own fulfillment business. FBM gives merchants more control over branding and cost management.

Sellers should take into account aspects including cost management, inventory management, branding requirements, product features, international shipping, fulfillment capability, and consumer expectations when choosing an Amazon seller shipping option. 

]]>
https://www.zonbase.com/blog/amazon-seller-shipping-options/feed/ 0