There are many problems that a seller can face when sending their first shipment to Amazon. I have prepared a checklist for prospective sellers to fill before sending the products FBA:
I would never send a product to Amazon, or any other retailer, without having sold them myself first. Not only would that give me an idea of the volume of sales, but it would also allow me to familiarize with the product, the packaging, the usual complaints, the returns, etc. Sending a product to Amazon means that the seller surrenders the inventory, the customer service, the autonomy to make decisions, and others. In other words, whatever decision Amazon takes, must be accepted.
With that said, and given that most new sellers are eager to dive head-first into FBA, if I were a new seller, sending my first product to Amazon, I’d fill the following checklist.
** Is it already available through FBM and not through FBA? If yes, determine why the product is FBM and not FBA. Some products are simply not a good fit for FBA. If a product is successful in FBM but doesn’t have FBA offers, there’s likely to be a reason.
** At what price can I sell? Three factors need to be considered to answer this question:
a) What the manufacturer/supplier suggests or indicate.
b) At what price are competitors selling the product.
c) What my costs dictate.
Amazon offers the following tool to determine the FBA cost of a product: https://sellercentral.amazon.com/fba/revenuecalculator/index in my experience it’s not 100% accurate, but it gives an idea. I generally add an additional 15% to whatever FBA fees the revenue calculator indicates. (This 15% is independent of the profit margin, the profit margin is calculated separately).
Other pages to consider when determining the costs associated with FBA are:
Calculating Cost
I have already written other threads explaining how to calculate the price as which to sell on Amazon, as well as how to read other metrics. FBA sellers should pay special attention to the equations 3, 4 and 10 indicated on this thread:
10 Equations that Amazon sellers should know
Understanding the Storage Limits and how much product can be sent to Amazon
Amazon is not a warehouse with occasional sales, is a store with limited storage space.
Sellers are allowed to use FBA space, the selling plan (individual or professional does not limit this). https://sellercentral.amazon.com/gp/help/help.html?itemID=XLRKWL8L5BMSHWB
Exceeding the storage space will result in either shipments being refused or storage fees. https://sellercentral.amazon.com/gp/help/V8JEETWV9Q33CMX?language=en_US&ref=ag_V8JEETWV9Q33CMX_cont_XLRKWL8L5BMSHWB
FBA sellers are expected to monitor their Inventory Performance Index (IPI) https://sellercentral.amazon.com/gp/help/202174810 to track the products that are a better fit for FBA. The biggest secret to improving the IPI is to maintain low levels of inventory. It is better to send multiple small shipments than a single large shipment. This of course can affect the shipping charges, so it is up to the seller to determine how much the cost of storage and the cost of shipping affect the final price of the product.
Workflow and steps to send products to Amazon https://sellercentral.amazon.com/learn/courses?ref_=su_course_accordion&moduleId=0c9a3d8f-751d-440c-8d36-68331393f9e0&courseId=0d0e449c-04e5-4f42-bcfe-2acbde3fb39d&modLanguage=English&videoPlayer=youtube
Some FAQ
You don’t know in advance. Amazon tries to optimize the distribution so it may split your shipment between multiple FCs. It may indicate that you will ship to one close to you, it may indicate that you’ll ship to the other side of the country.
You can’t calculate it until you know where you’re shipping. Shipping costs are one of the variables that you need to account to determine the price a which you will sell. Get quotes to an address in the East Coast, an address in the Rockies and one in the West Coast. That way you will have an idea of what the prices will be. Remember that you can always fix the sale’s price.
Terrible idea, but yes. There are multiple reasons why I consider this a terrible idea: 1) you don’t get to see the product, bot for quality control and to have samples. 2) Suppliers have MOQs, procedures, delays, etc. This is your first shipment, take a bit of pride on the product that you’re sending and inspect it before sending to Amazon. 3) Your supplier’s MOQ may exceed your storage limits. What do you do with the rest of the merchandise?
It has to be checked in and distributed throughout the country. This will take a while. Shipments on trucks have been know to be delayed more than 30 days while waiting to be admitted. The check in may take some more time.
Inventory will eventually be reconciled. Yes, some units may be lost. If you have all the documents to clearly demonstrate how many products arrived on Amazon you will be able to eventually reconcile the inventory.
Restock limits are determined by the sales, it used to be enough to work 90 days worth of inventory, this appears to no longer be the case.
Storage Space is determined by the efficiency of the rotation of inventory, in other words, by the IPI. It changes quarterly.
It is based on your settings. Check Inventory Dashboard-> Restock Limit -. Click on the number under the column “Recommended replenishment quantity”, it will take you to a settings page. Adjusting lead time, and minimum shipping quantity will change the “Recommended Replenishment Quantity”. This value has nothing to do with the storage limits, and it can easily conflict with them.
It takes time to be successful. FBA should not be the first avenue to sell on Amazon, but if you jumped so boldly into this adventure, you need to commit to it and move forwards. Sales take time, particularly when selling new products or when you don’t have the buy box. Patience is a virtue, so is creating a good listing, following Amazon’s policies, using effective advertisement, and drawing traffic to your products. 2 days will not dictate the success (or failure) of a product
Well, you should have filled the checklist and avoid it. Once you sent products to FBA you forfeited the handling of the inventory. At the moment it sits confiscated unless you can demonstrate your innocence. No, don’t threaten Amazon will legal actions, they have more and better lawyers than you do; plus you signed an agreement.
It depends. Not all products are a great fit; some products simply don’t sell well on FBA. It may be that they’re hazardous, too big, too delicate. There’s only one way to tell. Trying FBM first is the best practice, but even experienced FBM sellers can commit blunders when sending product to FBA.
With that said, FBA is a great tool for sellers who know how to use it. It can be very profitable, and it opens doors to many, many customers.
There are many problems that a seller can face when sending their first shipment to Amazon. I have prepared a checklist for prospective sellers to fill before sending the products FBA:
I would never send a product to Amazon, or any other retailer, without having sold them myself first. Not only would that give me an idea of the volume of sales, but it would also allow me to familiarize with the product, the packaging, the usual complaints, the returns, etc. Sending a product to Amazon means that the seller surrenders the inventory, the customer service, the autonomy to make decisions, and others. In other words, whatever decision Amazon takes, must be accepted.
With that said, and given that most new sellers are eager to dive head-first into FBA, if I were a new seller, sending my first product to Amazon, I’d fill the following checklist.
** Is it already available through FBM and not through FBA? If yes, determine why the product is FBM and not FBA. Some products are simply not a good fit for FBA. If a product is successful in FBM but doesn’t have FBA offers, there’s likely to be a reason.
** At what price can I sell? Three factors need to be considered to answer this question:
a) What the manufacturer/supplier suggests or indicate.
b) At what price are competitors selling the product.
c) What my costs dictate.
Amazon offers the following tool to determine the FBA cost of a product: https://sellercentral.amazon.com/fba/revenuecalculator/index in my experience it’s not 100% accurate, but it gives an idea. I generally add an additional 15% to whatever FBA fees the revenue calculator indicates. (This 15% is independent of the profit margin, the profit margin is calculated separately).
Other pages to consider when determining the costs associated with FBA are:
Calculating Cost
I have already written other threads explaining how to calculate the price as which to sell on Amazon, as well as how to read other metrics. FBA sellers should pay special attention to the equations 3, 4 and 10 indicated on this thread:
10 Equations that Amazon sellers should know
Understanding the Storage Limits and how much product can be sent to Amazon
Amazon is not a warehouse with occasional sales, is a store with limited storage space.
Sellers are allowed to use FBA space, the selling plan (individual or professional does not limit this). https://sellercentral.amazon.com/gp/help/help.html?itemID=XLRKWL8L5BMSHWB
Exceeding the storage space will result in either shipments being refused or storage fees. https://sellercentral.amazon.com/gp/help/V8JEETWV9Q33CMX?language=en_US&ref=ag_V8JEETWV9Q33CMX_cont_XLRKWL8L5BMSHWB
FBA sellers are expected to monitor their Inventory Performance Index (IPI) https://sellercentral.amazon.com/gp/help/202174810 to track the products that are a better fit for FBA. The biggest secret to improving the IPI is to maintain low levels of inventory. It is better to send multiple small shipments than a single large shipment. This of course can affect the shipping charges, so it is up to the seller to determine how much the cost of storage and the cost of shipping affect the final price of the product.
Workflow and steps to send products to Amazon https://sellercentral.amazon.com/learn/courses?ref_=su_course_accordion&moduleId=0c9a3d8f-751d-440c-8d36-68331393f9e0&courseId=0d0e449c-04e5-4f42-bcfe-2acbde3fb39d&modLanguage=English&videoPlayer=youtube
Some FAQ
You don’t know in advance. Amazon tries to optimize the distribution so it may split your shipment between multiple FCs. It may indicate that you will ship to one close to you, it may indicate that you’ll ship to the other side of the country.
You can’t calculate it until you know where you’re shipping. Shipping costs are one of the variables that you need to account to determine the price a which you will sell. Get quotes to an address in the East Coast, an address in the Rockies and one in the West Coast. That way you will have an idea of what the prices will be. Remember that you can always fix the sale’s price.
Terrible idea, but yes. There are multiple reasons why I consider this a terrible idea: 1) you don’t get to see the product, bot for quality control and to have samples. 2) Suppliers have MOQs, procedures, delays, etc. This is your first shipment, take a bit of pride on the product that you’re sending and inspect it before sending to Amazon. 3) Your supplier’s MOQ may exceed your storage limits. What do you do with the rest of the merchandise?
It has to be checked in and distributed throughout the country. This will take a while. Shipments on trucks have been know to be delayed more than 30 days while waiting to be admitted. The check in may take some more time.
Inventory will eventually be reconciled. Yes, some units may be lost. If you have all the documents to clearly demonstrate how many products arrived on Amazon you will be able to eventually reconcile the inventory.
Restock limits are determined by the sales, it used to be enough to work 90 days worth of inventory, this appears to no longer be the case.
Storage Space is determined by the efficiency of the rotation of inventory, in other words, by the IPI. It changes quarterly.
It is based on your settings. Check Inventory Dashboard-> Restock Limit -. Click on the number under the column “Recommended replenishment quantity”, it will take you to a settings page. Adjusting lead time, and minimum shipping quantity will change the “Recommended Replenishment Quantity”. This value has nothing to do with the storage limits, and it can easily conflict with them.
It takes time to be successful. FBA should not be the first avenue to sell on Amazon, but if you jumped so boldly into this adventure, you need to commit to it and move forwards. Sales take time, particularly when selling new products or when you don’t have the buy box. Patience is a virtue, so is creating a good listing, following Amazon’s policies, using effective advertisement, and drawing traffic to your products. 2 days will not dictate the success (or failure) of a product
Well, you should have filled the checklist and avoid it. Once you sent products to FBA you forfeited the handling of the inventory. At the moment it sits confiscated unless you can demonstrate your innocence. No, don’t threaten Amazon will legal actions, they have more and better lawyers than you do; plus you signed an agreement.
It depends. Not all products are a great fit; some products simply don’t sell well on FBA. It may be that they’re hazardous, too big, too delicate. There’s only one way to tell. Trying FBM first is the best practice, but even experienced FBM sellers can commit blunders when sending product to FBA.
With that said, FBA is a great tool for sellers who know how to use it. It can be very profitable, and it opens doors to many, many customers.
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
Im using FBA and have my product listed almost 2 months and no sales also they they are charging me the triple of the product value for FBA, I request a re-measurement and took a month when I finally got the correct measurement I ask them to change it in the product info and reimburst me what they charge me extra but I have send like 10 emails for that and they send again the product to a re-measurment… I really feel I am talking with a machine in the other side.
It is a good idea to pay adverising at the begining? how much per day?
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
@TallyTony Thank you for all your good advice and helpful links but some of them brought up issues I hadn’t thought about. I hope Amazon pays you something for your participation.
One of your links said to keep order cancellations below 2½%. Why would any seller want to cancel orders?
A year ago I prematurely opened up a professional account so after a couple months with no activity Amazon put my account on inactive status. However, I never got any credit card charges of $39. I just reactivated my account but still don’t have my product from China, yet. A real person “Account Representative” on the phone told me to go to Inventory and on the drop down click on “Add a Product.” How can I add a product without the product actually being at an Amazon facility? Hopefully, I should have my product within a month. How long can expect to have before Amazon puts my account back into inactive status? If I’m not getting monthly charges of $39 isn’t that a sign that maybe don’t really have a Professional Account after all? Thank you for your patience with my long winded questions.
@TallyTony Another multi-layered question if you don’t mind or it’s not improper because it’s really just a subjective math question so I hope it doesn’t violate any rules. - - After finding a company in China that will make joke meme stickers for me at $0.035 per sticker and package them for me I used the Fulfillment Calculator to come up with just under $4 each. If I order 1000 packages with 50 stickers each and about $1000 FedEx shipping, I’m looking at close to $7 cost per package. The closest size and dimensions of other similar items to my product are the Joe Biden gas stickers. There’s hundreds of sellers out there selling those sticker packages with up to 200 stickers and they’re selling them for as little as $6 to $7 each. How in the world is there any money left over for them? They must know something no one else does. Thanks for any thoughts or ideas. And P.S. - I’d bet everything I have that 99% of those Biden Gas Stickers are made in China.
Who says that there is? Many sellers in Amazon lose money because they have no idea what they are doing.
Others because their product is not as good/popular as they thought it would be and are just cutting their loses.
Go to reports, payments, transaction view
https://sellercentral.amazon.com/payments/event/view?resultsPerPage=10&pageNumber=1
You should see there if there are any transactions. You should also be able to check on your account health.
Thanks, but please know that there are very (very) many sellers in this forum that are far more knowledgeable than I am. I’m probably just one of the loudest, but very far from the actual go-to-guy.
My suggestion is that whenever you have a question you open a thread so that it gets good exposure, and multiple sets of eyes.
There are many problems that a seller can face when sending their first shipment to Amazon. I have prepared a checklist for prospective sellers to fill before sending the products FBA:
I would never send a product to Amazon, or any other retailer, without having sold them myself first. Not only would that give me an idea of the volume of sales, but it would also allow me to familiarize with the product, the packaging, the usual complaints, the returns, etc. Sending a product to Amazon means that the seller surrenders the inventory, the customer service, the autonomy to make decisions, and others. In other words, whatever decision Amazon takes, must be accepted.
With that said, and given that most new sellers are eager to dive head-first into FBA, if I were a new seller, sending my first product to Amazon, I’d fill the following checklist.
** Is it already available through FBM and not through FBA? If yes, determine why the product is FBM and not FBA. Some products are simply not a good fit for FBA. If a product is successful in FBM but doesn’t have FBA offers, there’s likely to be a reason.
** At what price can I sell? Three factors need to be considered to answer this question:
a) What the manufacturer/supplier suggests or indicate.
b) At what price are competitors selling the product.
c) What my costs dictate.
Amazon offers the following tool to determine the FBA cost of a product: https://sellercentral.amazon.com/fba/revenuecalculator/index in my experience it’s not 100% accurate, but it gives an idea. I generally add an additional 15% to whatever FBA fees the revenue calculator indicates. (This 15% is independent of the profit margin, the profit margin is calculated separately).
Other pages to consider when determining the costs associated with FBA are:
Calculating Cost
I have already written other threads explaining how to calculate the price as which to sell on Amazon, as well as how to read other metrics. FBA sellers should pay special attention to the equations 3, 4 and 10 indicated on this thread:
10 Equations that Amazon sellers should know
Understanding the Storage Limits and how much product can be sent to Amazon
Amazon is not a warehouse with occasional sales, is a store with limited storage space.
Sellers are allowed to use FBA space, the selling plan (individual or professional does not limit this). https://sellercentral.amazon.com/gp/help/help.html?itemID=XLRKWL8L5BMSHWB
Exceeding the storage space will result in either shipments being refused or storage fees. https://sellercentral.amazon.com/gp/help/V8JEETWV9Q33CMX?language=en_US&ref=ag_V8JEETWV9Q33CMX_cont_XLRKWL8L5BMSHWB
FBA sellers are expected to monitor their Inventory Performance Index (IPI) https://sellercentral.amazon.com/gp/help/202174810 to track the products that are a better fit for FBA. The biggest secret to improving the IPI is to maintain low levels of inventory. It is better to send multiple small shipments than a single large shipment. This of course can affect the shipping charges, so it is up to the seller to determine how much the cost of storage and the cost of shipping affect the final price of the product.
Workflow and steps to send products to Amazon https://sellercentral.amazon.com/learn/courses?ref_=su_course_accordion&moduleId=0c9a3d8f-751d-440c-8d36-68331393f9e0&courseId=0d0e449c-04e5-4f42-bcfe-2acbde3fb39d&modLanguage=English&videoPlayer=youtube
Some FAQ
You don’t know in advance. Amazon tries to optimize the distribution so it may split your shipment between multiple FCs. It may indicate that you will ship to one close to you, it may indicate that you’ll ship to the other side of the country.
You can’t calculate it until you know where you’re shipping. Shipping costs are one of the variables that you need to account to determine the price a which you will sell. Get quotes to an address in the East Coast, an address in the Rockies and one in the West Coast. That way you will have an idea of what the prices will be. Remember that you can always fix the sale’s price.
Terrible idea, but yes. There are multiple reasons why I consider this a terrible idea: 1) you don’t get to see the product, bot for quality control and to have samples. 2) Suppliers have MOQs, procedures, delays, etc. This is your first shipment, take a bit of pride on the product that you’re sending and inspect it before sending to Amazon. 3) Your supplier’s MOQ may exceed your storage limits. What do you do with the rest of the merchandise?
It has to be checked in and distributed throughout the country. This will take a while. Shipments on trucks have been know to be delayed more than 30 days while waiting to be admitted. The check in may take some more time.
Inventory will eventually be reconciled. Yes, some units may be lost. If you have all the documents to clearly demonstrate how many products arrived on Amazon you will be able to eventually reconcile the inventory.
Restock limits are determined by the sales, it used to be enough to work 90 days worth of inventory, this appears to no longer be the case.
Storage Space is determined by the efficiency of the rotation of inventory, in other words, by the IPI. It changes quarterly.
It is based on your settings. Check Inventory Dashboard-> Restock Limit -. Click on the number under the column “Recommended replenishment quantity”, it will take you to a settings page. Adjusting lead time, and minimum shipping quantity will change the “Recommended Replenishment Quantity”. This value has nothing to do with the storage limits, and it can easily conflict with them.
It takes time to be successful. FBA should not be the first avenue to sell on Amazon, but if you jumped so boldly into this adventure, you need to commit to it and move forwards. Sales take time, particularly when selling new products or when you don’t have the buy box. Patience is a virtue, so is creating a good listing, following Amazon’s policies, using effective advertisement, and drawing traffic to your products. 2 days will not dictate the success (or failure) of a product
Well, you should have filled the checklist and avoid it. Once you sent products to FBA you forfeited the handling of the inventory. At the moment it sits confiscated unless you can demonstrate your innocence. No, don’t threaten Amazon will legal actions, they have more and better lawyers than you do; plus you signed an agreement.
It depends. Not all products are a great fit; some products simply don’t sell well on FBA. It may be that they’re hazardous, too big, too delicate. There’s only one way to tell. Trying FBM first is the best practice, but even experienced FBM sellers can commit blunders when sending product to FBA.
With that said, FBA is a great tool for sellers who know how to use it. It can be very profitable, and it opens doors to many, many customers.
There are many problems that a seller can face when sending their first shipment to Amazon. I have prepared a checklist for prospective sellers to fill before sending the products FBA:
I would never send a product to Amazon, or any other retailer, without having sold them myself first. Not only would that give me an idea of the volume of sales, but it would also allow me to familiarize with the product, the packaging, the usual complaints, the returns, etc. Sending a product to Amazon means that the seller surrenders the inventory, the customer service, the autonomy to make decisions, and others. In other words, whatever decision Amazon takes, must be accepted.
With that said, and given that most new sellers are eager to dive head-first into FBA, if I were a new seller, sending my first product to Amazon, I’d fill the following checklist.
** Is it already available through FBM and not through FBA? If yes, determine why the product is FBM and not FBA. Some products are simply not a good fit for FBA. If a product is successful in FBM but doesn’t have FBA offers, there’s likely to be a reason.
** At what price can I sell? Three factors need to be considered to answer this question:
a) What the manufacturer/supplier suggests or indicate.
b) At what price are competitors selling the product.
c) What my costs dictate.
Amazon offers the following tool to determine the FBA cost of a product: https://sellercentral.amazon.com/fba/revenuecalculator/index in my experience it’s not 100% accurate, but it gives an idea. I generally add an additional 15% to whatever FBA fees the revenue calculator indicates. (This 15% is independent of the profit margin, the profit margin is calculated separately).
Other pages to consider when determining the costs associated with FBA are:
Calculating Cost
I have already written other threads explaining how to calculate the price as which to sell on Amazon, as well as how to read other metrics. FBA sellers should pay special attention to the equations 3, 4 and 10 indicated on this thread:
10 Equations that Amazon sellers should know
Understanding the Storage Limits and how much product can be sent to Amazon
Amazon is not a warehouse with occasional sales, is a store with limited storage space.
Sellers are allowed to use FBA space, the selling plan (individual or professional does not limit this). https://sellercentral.amazon.com/gp/help/help.html?itemID=XLRKWL8L5BMSHWB
Exceeding the storage space will result in either shipments being refused or storage fees. https://sellercentral.amazon.com/gp/help/V8JEETWV9Q33CMX?language=en_US&ref=ag_V8JEETWV9Q33CMX_cont_XLRKWL8L5BMSHWB
FBA sellers are expected to monitor their Inventory Performance Index (IPI) https://sellercentral.amazon.com/gp/help/202174810 to track the products that are a better fit for FBA. The biggest secret to improving the IPI is to maintain low levels of inventory. It is better to send multiple small shipments than a single large shipment. This of course can affect the shipping charges, so it is up to the seller to determine how much the cost of storage and the cost of shipping affect the final price of the product.
Workflow and steps to send products to Amazon https://sellercentral.amazon.com/learn/courses?ref_=su_course_accordion&moduleId=0c9a3d8f-751d-440c-8d36-68331393f9e0&courseId=0d0e449c-04e5-4f42-bcfe-2acbde3fb39d&modLanguage=English&videoPlayer=youtube
Some FAQ
You don’t know in advance. Amazon tries to optimize the distribution so it may split your shipment between multiple FCs. It may indicate that you will ship to one close to you, it may indicate that you’ll ship to the other side of the country.
You can’t calculate it until you know where you’re shipping. Shipping costs are one of the variables that you need to account to determine the price a which you will sell. Get quotes to an address in the East Coast, an address in the Rockies and one in the West Coast. That way you will have an idea of what the prices will be. Remember that you can always fix the sale’s price.
Terrible idea, but yes. There are multiple reasons why I consider this a terrible idea: 1) you don’t get to see the product, bot for quality control and to have samples. 2) Suppliers have MOQs, procedures, delays, etc. This is your first shipment, take a bit of pride on the product that you’re sending and inspect it before sending to Amazon. 3) Your supplier’s MOQ may exceed your storage limits. What do you do with the rest of the merchandise?
It has to be checked in and distributed throughout the country. This will take a while. Shipments on trucks have been know to be delayed more than 30 days while waiting to be admitted. The check in may take some more time.
Inventory will eventually be reconciled. Yes, some units may be lost. If you have all the documents to clearly demonstrate how many products arrived on Amazon you will be able to eventually reconcile the inventory.
Restock limits are determined by the sales, it used to be enough to work 90 days worth of inventory, this appears to no longer be the case.
Storage Space is determined by the efficiency of the rotation of inventory, in other words, by the IPI. It changes quarterly.
It is based on your settings. Check Inventory Dashboard-> Restock Limit -. Click on the number under the column “Recommended replenishment quantity”, it will take you to a settings page. Adjusting lead time, and minimum shipping quantity will change the “Recommended Replenishment Quantity”. This value has nothing to do with the storage limits, and it can easily conflict with them.
It takes time to be successful. FBA should not be the first avenue to sell on Amazon, but if you jumped so boldly into this adventure, you need to commit to it and move forwards. Sales take time, particularly when selling new products or when you don’t have the buy box. Patience is a virtue, so is creating a good listing, following Amazon’s policies, using effective advertisement, and drawing traffic to your products. 2 days will not dictate the success (or failure) of a product
Well, you should have filled the checklist and avoid it. Once you sent products to FBA you forfeited the handling of the inventory. At the moment it sits confiscated unless you can demonstrate your innocence. No, don’t threaten Amazon will legal actions, they have more and better lawyers than you do; plus you signed an agreement.
It depends. Not all products are a great fit; some products simply don’t sell well on FBA. It may be that they’re hazardous, too big, too delicate. There’s only one way to tell. Trying FBM first is the best practice, but even experienced FBM sellers can commit blunders when sending product to FBA.
With that said, FBA is a great tool for sellers who know how to use it. It can be very profitable, and it opens doors to many, many customers.
There are many problems that a seller can face when sending their first shipment to Amazon. I have prepared a checklist for prospective sellers to fill before sending the products FBA:
I would never send a product to Amazon, or any other retailer, without having sold them myself first. Not only would that give me an idea of the volume of sales, but it would also allow me to familiarize with the product, the packaging, the usual complaints, the returns, etc. Sending a product to Amazon means that the seller surrenders the inventory, the customer service, the autonomy to make decisions, and others. In other words, whatever decision Amazon takes, must be accepted.
With that said, and given that most new sellers are eager to dive head-first into FBA, if I were a new seller, sending my first product to Amazon, I’d fill the following checklist.
** Is it already available through FBM and not through FBA? If yes, determine why the product is FBM and not FBA. Some products are simply not a good fit for FBA. If a product is successful in FBM but doesn’t have FBA offers, there’s likely to be a reason.
** At what price can I sell? Three factors need to be considered to answer this question:
a) What the manufacturer/supplier suggests or indicate.
b) At what price are competitors selling the product.
c) What my costs dictate.
Amazon offers the following tool to determine the FBA cost of a product: https://sellercentral.amazon.com/fba/revenuecalculator/index in my experience it’s not 100% accurate, but it gives an idea. I generally add an additional 15% to whatever FBA fees the revenue calculator indicates. (This 15% is independent of the profit margin, the profit margin is calculated separately).
Other pages to consider when determining the costs associated with FBA are:
Calculating Cost
I have already written other threads explaining how to calculate the price as which to sell on Amazon, as well as how to read other metrics. FBA sellers should pay special attention to the equations 3, 4 and 10 indicated on this thread:
10 Equations that Amazon sellers should know
Understanding the Storage Limits and how much product can be sent to Amazon
Amazon is not a warehouse with occasional sales, is a store with limited storage space.
Sellers are allowed to use FBA space, the selling plan (individual or professional does not limit this). https://sellercentral.amazon.com/gp/help/help.html?itemID=XLRKWL8L5BMSHWB
Exceeding the storage space will result in either shipments being refused or storage fees. https://sellercentral.amazon.com/gp/help/V8JEETWV9Q33CMX?language=en_US&ref=ag_V8JEETWV9Q33CMX_cont_XLRKWL8L5BMSHWB
FBA sellers are expected to monitor their Inventory Performance Index (IPI) https://sellercentral.amazon.com/gp/help/202174810 to track the products that are a better fit for FBA. The biggest secret to improving the IPI is to maintain low levels of inventory. It is better to send multiple small shipments than a single large shipment. This of course can affect the shipping charges, so it is up to the seller to determine how much the cost of storage and the cost of shipping affect the final price of the product.
Workflow and steps to send products to Amazon https://sellercentral.amazon.com/learn/courses?ref_=su_course_accordion&moduleId=0c9a3d8f-751d-440c-8d36-68331393f9e0&courseId=0d0e449c-04e5-4f42-bcfe-2acbde3fb39d&modLanguage=English&videoPlayer=youtube
Some FAQ
You don’t know in advance. Amazon tries to optimize the distribution so it may split your shipment between multiple FCs. It may indicate that you will ship to one close to you, it may indicate that you’ll ship to the other side of the country.
You can’t calculate it until you know where you’re shipping. Shipping costs are one of the variables that you need to account to determine the price a which you will sell. Get quotes to an address in the East Coast, an address in the Rockies and one in the West Coast. That way you will have an idea of what the prices will be. Remember that you can always fix the sale’s price.
Terrible idea, but yes. There are multiple reasons why I consider this a terrible idea: 1) you don’t get to see the product, bot for quality control and to have samples. 2) Suppliers have MOQs, procedures, delays, etc. This is your first shipment, take a bit of pride on the product that you’re sending and inspect it before sending to Amazon. 3) Your supplier’s MOQ may exceed your storage limits. What do you do with the rest of the merchandise?
It has to be checked in and distributed throughout the country. This will take a while. Shipments on trucks have been know to be delayed more than 30 days while waiting to be admitted. The check in may take some more time.
Inventory will eventually be reconciled. Yes, some units may be lost. If you have all the documents to clearly demonstrate how many products arrived on Amazon you will be able to eventually reconcile the inventory.
Restock limits are determined by the sales, it used to be enough to work 90 days worth of inventory, this appears to no longer be the case.
Storage Space is determined by the efficiency of the rotation of inventory, in other words, by the IPI. It changes quarterly.
It is based on your settings. Check Inventory Dashboard-> Restock Limit -. Click on the number under the column “Recommended replenishment quantity”, it will take you to a settings page. Adjusting lead time, and minimum shipping quantity will change the “Recommended Replenishment Quantity”. This value has nothing to do with the storage limits, and it can easily conflict with them.
It takes time to be successful. FBA should not be the first avenue to sell on Amazon, but if you jumped so boldly into this adventure, you need to commit to it and move forwards. Sales take time, particularly when selling new products or when you don’t have the buy box. Patience is a virtue, so is creating a good listing, following Amazon’s policies, using effective advertisement, and drawing traffic to your products. 2 days will not dictate the success (or failure) of a product
Well, you should have filled the checklist and avoid it. Once you sent products to FBA you forfeited the handling of the inventory. At the moment it sits confiscated unless you can demonstrate your innocence. No, don’t threaten Amazon will legal actions, they have more and better lawyers than you do; plus you signed an agreement.
It depends. Not all products are a great fit; some products simply don’t sell well on FBA. It may be that they’re hazardous, too big, too delicate. There’s only one way to tell. Trying FBM first is the best practice, but even experienced FBM sellers can commit blunders when sending product to FBA.
With that said, FBA is a great tool for sellers who know how to use it. It can be very profitable, and it opens doors to many, many customers.
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
Im using FBA and have my product listed almost 2 months and no sales also they they are charging me the triple of the product value for FBA, I request a re-measurement and took a month when I finally got the correct measurement I ask them to change it in the product info and reimburst me what they charge me extra but I have send like 10 emails for that and they send again the product to a re-measurment… I really feel I am talking with a machine in the other side.
It is a good idea to pay adverising at the begining? how much per day?
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
@TallyTony Thank you for all your good advice and helpful links but some of them brought up issues I hadn’t thought about. I hope Amazon pays you something for your participation.
One of your links said to keep order cancellations below 2½%. Why would any seller want to cancel orders?
A year ago I prematurely opened up a professional account so after a couple months with no activity Amazon put my account on inactive status. However, I never got any credit card charges of $39. I just reactivated my account but still don’t have my product from China, yet. A real person “Account Representative” on the phone told me to go to Inventory and on the drop down click on “Add a Product.” How can I add a product without the product actually being at an Amazon facility? Hopefully, I should have my product within a month. How long can expect to have before Amazon puts my account back into inactive status? If I’m not getting monthly charges of $39 isn’t that a sign that maybe don’t really have a Professional Account after all? Thank you for your patience with my long winded questions.
@TallyTony Another multi-layered question if you don’t mind or it’s not improper because it’s really just a subjective math question so I hope it doesn’t violate any rules. - - After finding a company in China that will make joke meme stickers for me at $0.035 per sticker and package them for me I used the Fulfillment Calculator to come up with just under $4 each. If I order 1000 packages with 50 stickers each and about $1000 FedEx shipping, I’m looking at close to $7 cost per package. The closest size and dimensions of other similar items to my product are the Joe Biden gas stickers. There’s hundreds of sellers out there selling those sticker packages with up to 200 stickers and they’re selling them for as little as $6 to $7 each. How in the world is there any money left over for them? They must know something no one else does. Thanks for any thoughts or ideas. And P.S. - I’d bet everything I have that 99% of those Biden Gas Stickers are made in China.
Who says that there is? Many sellers in Amazon lose money because they have no idea what they are doing.
Others because their product is not as good/popular as they thought it would be and are just cutting their loses.
Go to reports, payments, transaction view
https://sellercentral.amazon.com/payments/event/view?resultsPerPage=10&pageNumber=1
You should see there if there are any transactions. You should also be able to check on your account health.
Thanks, but please know that there are very (very) many sellers in this forum that are far more knowledgeable than I am. I’m probably just one of the loudest, but very far from the actual go-to-guy.
My suggestion is that whenever you have a question you open a thread so that it gets good exposure, and multiple sets of eyes.
Im using FBA and have my product listed almost 2 months and no sales also they they are charging me the triple of the product value for FBA, I request a re-measurement and took a month when I finally got the correct measurement I ask them to change it in the product info and reimburst me what they charge me extra but I have send like 10 emails for that and they send again the product to a re-measurment… I really feel I am talking with a machine in the other side.
It is a good idea to pay adverising at the begining? how much per day?
Im using FBA and have my product listed almost 2 months and no sales also they they are charging me the triple of the product value for FBA, I request a re-measurement and took a month when I finally got the correct measurement I ask them to change it in the product info and reimburst me what they charge me extra but I have send like 10 emails for that and they send again the product to a re-measurment… I really feel I am talking with a machine in the other side.
It is a good idea to pay adverising at the begining? how much per day?
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
This is a great checklist, but it has a supply side bias.
It needs some demand side parameters, which are far more difficult to identify.
I suggest all of us think of how to enumerate them. And they are more difficult because they require something other than trying to analyze estimates of Amazon sales data.
This checklist is right on, if you have chosen a product which will make money for you selling on Amazon. It does not tell you how to choose one. The poster with no sales after 2 months is not unique, and this checklist might not help him at all.
@TallyTony Thank you for all your good advice and helpful links but some of them brought up issues I hadn’t thought about. I hope Amazon pays you something for your participation.
One of your links said to keep order cancellations below 2½%. Why would any seller want to cancel orders?
A year ago I prematurely opened up a professional account so after a couple months with no activity Amazon put my account on inactive status. However, I never got any credit card charges of $39. I just reactivated my account but still don’t have my product from China, yet. A real person “Account Representative” on the phone told me to go to Inventory and on the drop down click on “Add a Product.” How can I add a product without the product actually being at an Amazon facility? Hopefully, I should have my product within a month. How long can expect to have before Amazon puts my account back into inactive status? If I’m not getting monthly charges of $39 isn’t that a sign that maybe don’t really have a Professional Account after all? Thank you for your patience with my long winded questions.
@TallyTony Thank you for all your good advice and helpful links but some of them brought up issues I hadn’t thought about. I hope Amazon pays you something for your participation.
One of your links said to keep order cancellations below 2½%. Why would any seller want to cancel orders?
A year ago I prematurely opened up a professional account so after a couple months with no activity Amazon put my account on inactive status. However, I never got any credit card charges of $39. I just reactivated my account but still don’t have my product from China, yet. A real person “Account Representative” on the phone told me to go to Inventory and on the drop down click on “Add a Product.” How can I add a product without the product actually being at an Amazon facility? Hopefully, I should have my product within a month. How long can expect to have before Amazon puts my account back into inactive status? If I’m not getting monthly charges of $39 isn’t that a sign that maybe don’t really have a Professional Account after all? Thank you for your patience with my long winded questions.
@TallyTony Another multi-layered question if you don’t mind or it’s not improper because it’s really just a subjective math question so I hope it doesn’t violate any rules. - - After finding a company in China that will make joke meme stickers for me at $0.035 per sticker and package them for me I used the Fulfillment Calculator to come up with just under $4 each. If I order 1000 packages with 50 stickers each and about $1000 FedEx shipping, I’m looking at close to $7 cost per package. The closest size and dimensions of other similar items to my product are the Joe Biden gas stickers. There’s hundreds of sellers out there selling those sticker packages with up to 200 stickers and they’re selling them for as little as $6 to $7 each. How in the world is there any money left over for them? They must know something no one else does. Thanks for any thoughts or ideas. And P.S. - I’d bet everything I have that 99% of those Biden Gas Stickers are made in China.
@TallyTony Another multi-layered question if you don’t mind or it’s not improper because it’s really just a subjective math question so I hope it doesn’t violate any rules. - - After finding a company in China that will make joke meme stickers for me at $0.035 per sticker and package them for me I used the Fulfillment Calculator to come up with just under $4 each. If I order 1000 packages with 50 stickers each and about $1000 FedEx shipping, I’m looking at close to $7 cost per package. The closest size and dimensions of other similar items to my product are the Joe Biden gas stickers. There’s hundreds of sellers out there selling those sticker packages with up to 200 stickers and they’re selling them for as little as $6 to $7 each. How in the world is there any money left over for them? They must know something no one else does. Thanks for any thoughts or ideas. And P.S. - I’d bet everything I have that 99% of those Biden Gas Stickers are made in China.
Who says that there is? Many sellers in Amazon lose money because they have no idea what they are doing.
Others because their product is not as good/popular as they thought it would be and are just cutting their loses.
Go to reports, payments, transaction view
https://sellercentral.amazon.com/payments/event/view?resultsPerPage=10&pageNumber=1
You should see there if there are any transactions. You should also be able to check on your account health.
Thanks, but please know that there are very (very) many sellers in this forum that are far more knowledgeable than I am. I’m probably just one of the loudest, but very far from the actual go-to-guy.
My suggestion is that whenever you have a question you open a thread so that it gets good exposure, and multiple sets of eyes.
Who says that there is? Many sellers in Amazon lose money because they have no idea what they are doing.
Others because their product is not as good/popular as they thought it would be and are just cutting their loses.
Go to reports, payments, transaction view
https://sellercentral.amazon.com/payments/event/view?resultsPerPage=10&pageNumber=1
You should see there if there are any transactions. You should also be able to check on your account health.
Thanks, but please know that there are very (very) many sellers in this forum that are far more knowledgeable than I am. I’m probably just one of the loudest, but very far from the actual go-to-guy.
My suggestion is that whenever you have a question you open a thread so that it gets good exposure, and multiple sets of eyes.