Amazon FBA Small and Light Program Guide 2022
Amazon FBA Small and Light Program Guide 2022
The Fulfillment by Amazon (FBA) program makes it easy for independent sellers to start their own eCommerce business. Having your orders fulfilled by Amazon cuts down on your workload, allowing you to focus on other areas of your business.
The only drawback of the program is the added fees. Selling through Amazon FBA requires you to pay storage and fulfillment fees, and if you’re not careful those can really eat into your profit margins.
However, if your products qualify for the Small and Light program you can greatly reduce your costs, which means you get to keep more of the money you make from every sale.
So, what is Amazon Small and Light and how do you qualify for it? Keep reading to learn everything you need to know.
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What is Amazon FBA Small and Light?
The Amazon Small and Light program is designed for very small and fast-moving products. Qualifying items pay lower FBA fees, which makes a big difference to your bottom line.
FBA fees are based on size and weight, since larger items take up more space and are more expensive to ship. The program is intended to reward sellers for selling lightweight products that are easy to store and handle.
Plus, many smaller items sell for lower prices. Amazon recognizes this, which is why they lower their fees on these types of items. It ensures you can still make a profit, even if your products don’t have the highest sales price.
There are a few other benefits that come along with qualifying for the Small and Light program:
Free Delivery: You can offer free three to five day delivery for Prime members, and free six to eight day delivery for non-Prime members. This is a huge selling feature for shoppers.
A-Z Guarantee: Your items will be guaranteed by Amazon in case anything goes wrong with the order. This gives customers a lot of peace of mind when they buy from you.
Promotions: Some of your products priced under $5 may be eligible for special promotions. If customers order two more items they get 5% off, and the discount is covered by Amazon.
So, if you have an item that qualifies it’s definitely worth it to apply.
What are the Requirements?
The small and light program has two tiers: small standard and large standard. Your product will be placed in a tier depending on its size. There’s also different pricing within each tier, based on your item’s weight.
In order to qualify for the Small and Light program your product must meet the following requirements and limits:
A size of 15 x 12 x 0.75 to qualify for the small standard tier.
A size of 18 x 14 x 8 inches or less to qualify for the large standard tier.
A maximum weight of 12 oz.
A maximum of 6 oz to qualify for the lowest small and light fees within your tier.
Must be in new condition.
Must have been listed on Amazon for at least 90 days.
Must have 25 sales in the last four weeks.
Must have an Amazon barcode.
Additionally, your item must be sold in an eligible category.
For example, items sold in restricted categories (collectible coins, DVDs and Blurays, streaming media players, etc.) are not allowed in the Small and Light program. Adult products, dangerous goods, and temperature-sensitive items also aren’t eligible.
How to Get Started
Are you interested in selling items in the Small and Light program? Here’s what you need to do:
1. Sign Up for an Amazon Seller Account
If you haven’t done so already, you’ll need to register for an Amazon seller account. You can do that here. Follow the directions and complete all the required forms. You’ll have to submit a piece of government-issued ID, a credit card, and your tax information. So, make sure you have that ready before you begin.
After submitting your form expect to wait a few days before you’re approved.
2. Choose Your Product
Next, you have to decide what you want to sell. If you specifically want to sell through the Small and Light program you’ll need to make sure your product meets the requirements listed above.
A good way to check this is with the AMZScout FBA Calculator. This is a free Google Chrome extension that allows you to calculate your FBA fees for any item. It also lists the dimension and weight of the product you’re looking at.
Once you install the extension, navigate to the Amazon listing for the item you’re interested in. Then open the calculator to see the size, weight, fees, and profit margins.
3. Enroll in the FBA Program
In order to apply to Small and Light, you need to be selling through Amazon FBA. You can do this in your Seller Central account.
Once you have FBA setup, go to “Inventory” and “Add a Product” to create your listing. While adding your item, make sure to specify that you’ll be selling it through FBA. After your listing is done you’ll need to create a shipping plan and send your inventory to Amazon. Follow the directions to ensure you complete the process correctly.
After your product has been on Amazon for 90 days check your sales stats. If you’ve sold at least 25 items in the last four weeks you can apply to the Small and Light Program.
4. Apply to Amazon Small and Light
Once your item is eligible take the following steps to apply:
Log in to Seller Central.
Under “Growth” select “Fulfillment Programs.”
Select “Small and Light.”
Click “Quick enroll +” to quickly enroll up to 100 products.
To submit more items (up to 50,000), download the template and upload them manually.
Correct any errors Amazon finds with your submission.
Submit your products.
Ship your items to Amazon (you must ship a minimum of 24 units per product).
Once your product is approved the Small and Light program works just like FBA, except now you’ll pay fewer fees.
Tips for Preparing Your Shipment to Amazon
Are you new to shipping items to Amazon FBA? Here are a few tips:
Make sure your packages are labeled correctly. You’ll need to include your name, address, carrier name, carrier’s shipping reference number, and unit quantity.
All your items will need to be labeled with a scannable barcode. This can either be the UPC code that came with the product or an ASIN.
Be sure to follow Amazon’s instructions in regards to preparing your items. Depending on what you’re selling you may need to package each product in a clear plastic bag or shrink wrap. Other items might be fine in their original packaging.
You can send multiple ASINs in one box assuming you bundle different products together. Just remember to clearly label your box, including the items inside and the quantity for each.
Use Amazon Partnered Carriers to get a discount on your shipping.
Amazon Small and Light Fees: Changes for 2021
The fee structure for the Small and Light program has been updated as of June 1st, 2021. See below for the new fees:
Before you decide to sell any product calculate your profit margins using the AMZScout FBA Calculator. That way, you’ll know exactly how much profit you’ll have leftover from each sale after your fees.
If you want to minimize your FBA costs then the Small and Light program is a great solution. Follow the steps above to find the perfect product and start your eCommerce business.